A report has it that Celsius onboarded attorneys to discover possible answers to the current financial issues that the company is facing.
Celsius Network (CEL) has hired restructuring lawyers from Akin Gump Strauss Hauer & Feld to investigate potential remedies to the company’s financial issues.
Apart from attempting to fix its current challenges, the company is reportedly considering additional strategic possibilities, such as financial restructuring. According to the report, the exchange is looking for investors that can give financing options for the crypto loan company.
The exchange suspended withdrawals from its platform on Monday, citing unusual market conditions. During the withdrawal freeze, the company unstaked about $247 million in Wrapped Bitcoin (wBTC) from liquidity protocol Aave and transferred it to the FTX market. In addition to their BTC, the company has sent $74.5 million in Ether (ETH) to FTX.
As reports of Celsius’ insolvency circulate, crypto exchange Nexo has reached out to the lending platform. The Nexo, along with its partners and affiliates, can acquire a portion or all of Celsius’ outstanding “collateralized loan receivables.”
To allay holder concerns amid the Celsius scenario, stablecoin issuer Tether (USDT) has stated that the current circumstances surrounding the loan platform have “no influence” on Tether’s reserves. Tether claims that, while it has an interest in Celsius, it does not affect the stability of its reserves. The announcement further stated that the Celsius scenario is the product of “market volatility.”
Meanwhile, Binance suspended BTC withdrawals on its platform on Monday, coinciding with the Celsius pause. However, Binance CEO Changpeng Zhao assured investors that their assets were safe and that withdrawals will be available soon. The crypto exchange began withdrawals on the same day.
