- Celsius hires restructuring counsel from Akin Gump Strauss Hauer & Feld LLP law firm.
- The counsel was hired to tackle the present challenging situation.
- Harsh market conditions had caused Celsius to halt swaps, withdrawals, and transfers.
Celsius has reportedly hired a counsel to help with the restructuring of the platform to enable a revival. Celsius is one of the largest crypto lending platforms. Recently, the platform has been going through a tough time with the harsh market conditions, which caused it to freeze user accounts.
Reportedly, the company board has lost faith in CEO Alex Mashinsky, which made them move forward with the decision. “The board has obviously lost faith in Alex and pulled the plug on the charade. Kudos to them,” said Mike Alfred, CEO of BrightScope financial information company.
Celsius has hired counsel to help with “restructuring”. The board has obviously lost faith in Alex and pulled the plug on the charade. Kudos to them. As I said on Bloomberg today, an orderly wind down is the best approach.
— Mike Alfred (@mikealfred) June 14, 2022
According to a Wall Street Journal article, Celsius hired restructuring counsel from the law firm Akin Gump Strauss Hauer & Feld LLP. This decision is considered to be a method to tackle the current financial problems that seem to be piling up in Celcius.
According to one of the persons acquainted with the situation, Celsius is currently seeking new funding options from investors. The platform is also considering other strategic alternatives, such as financial restructuring.
Notably, the DeFi bank mainly relies on lending out the customer’s deposits to earn a return on them. As of May 17, Celsius has managed to acquire and manage over $11.8 billion in assets. It has a user base of over 1.7 million users who enjoy up to an 18.63% yield on crypto deposits.
Unsurprisingly, Celsius’s decision to halt its platform sparked outrage and raised the concern that it would follow in the footsteps of LUNA. It is believed that the team is making quick moves to avoid such a disastrous fall. Celsius (CEL), which had plummeted hard, managed to wake up and is currently trading at $0.5003 with a 50% increase in the last 24 hours.