As per WSJ, Celsius network is hiring restructuring lawyers to seek solutions on navigating the current financial crisis.
The company has reportedly sought help from the legal firm Akin Gump Strauss Hauer and Feld on issues concerning a possible financial restructuring.
According to a recent report by Wall Street Journal, the crypto lender platform Celsius Network has hired restructuring attorneys from the law firm Akin Gump Strauss Hauer and Feld to seek assistance amid rising financial issues that the company at present is dealing with.
Celsius Network Seeks Further Assistance, Plans To Explore Financial Restructuring
WSJ further stated that Celsius is also looking for possible financing options from other investors, but is also mulling over other alternatives, including financial restructuring to stay afloat amid turbulent times, WSJ reported, citing people familiar with the matter.
Touted as one of the largest crypto lenders, Celsius took the internet by storm when it announced its decision to halt its withdrawals, swaps, and transfers citing “extreme market conditions.” The crypto lender platform has established a successful reputation over the past years as a leading entity that provides crypto loans and interest on crypto deposits. However, with its recent halt, several crypto critics were quick to label the firm’s antics as “Ponzi,” which was unable to save itself from the bearish market trends.
As per Coinmarketcap, the company’s native token CEL is presently trading at $0.4819, indicating a sharp decline of nearly 90% from its earlier value of $3 in April 2022.
However, the CEL token regained some of its strength on June 14, when it received multiple DAI transactions worth $28 million. The data from Etherscan suggests that these transactions were initiated from an Ethereum contract address denoting a loan from Oasis.
Celsius Network’s decision to halt its withdrawal seems to have impacted the crypto market with its overall market cap sliding below $1 trillion on June 13. Soon after Celsius announced its decision to pause withdrawals, the value of Bitcoin took a sharp hit, falling below $24,000 to its lowest value since January 2021.
The Bitcoin fear and greed index also echoes signs of distress indicating “extreme fear” amid the plummeting prices of Bitcoin as of late. At press time, the price of BTC is sitting at $21,144.