Troubled Cryptocurrency Lender Celsius Has Hired New Insolvency Lawyers, Wall Street Reports

Struggling cryptocurrency lender Celsius has hired new restructuring lawyers, according to a report on Wall Street Journal

According to the Wall Street Journal, cryptocurrency lender Celsius has reportedly placed new attorneys at the forefront of its reorganization process. This move comes less than a month after the company halted withdrawals for customers.

The Wall Street Journal cited sources with knowledge of the situation in reporting that Celsius had engaged attorneys from the firm Kirkland & Ellis LLP to replace the attorneys from Akin Gump Strauss Hauer & Feld LLP who had been retained a month ago in the aftermath of Celsius suspending operations.

According to the website of the corporation, the company located in New Jersey went bankrupt in June due to strains on its liquidity, which resulted in 1.7 million members being locked out of their accounts.

Throughout the period leading up to the halt, Celsius provided its clients with high-yield loans of up to 18 percent on deposits. Celsius insists that its users would continue to accumulate incentives during the cryptocurrency’s hiatus.

Customers have been unable to access their accounts for many weeks as a result of the freezing of their respective accounts. In May, Celsius reported having assets of $11.8 billion.

The company said exactly one month ago:

“We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets. We are working diligently to meet our obligations.”

Although Celsius Network has not declared bankruptcy, unlike Voyager Capital, there are growing concerns about its ability to continue operating, and its partnership with Kirkland & Ellis LLP may signal a change in overall policy.

In related news, last month’s suspension of withdrawals by Celsius Network sent the cryptocurrency market into a downward tailspin. Additionally, it just settled the balance owed to DeFi Protocol MakerDAO. On July 7, the last $41.2 million was paid, and it was done in DAI. Celsius was able to release the $448 million in collateralized debt with the help of this repayment.