Celsius reportedly seeks advice from lawyers on restructuring

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Cryp­to lend­ing plat­form Cel­sius Net­work (CEL) has onboard­ed restruc­tur­ing lawyers from Akin Gump Strauss Hauer & Feld to find poten­tial solu­tions to the fir­m’s finan­cial woes. 

The firm is report­ed­ly look­ing for oth­er strate­gic alter­na­tives, such as a finan­cial restruc­tur­ing, apart from its attempts to solve its cur­rent prob­lems. The report also not­ed that Cel­sius is try­ing to find investors who would be able to pro­vide financ­ing options for the cryp­to lend­ing company. 

Cit­ing extreme mar­ket con­di­tions, Cel­sius paused with­drawals from its plat­form on Mon­day. Amid the with­draw­al freeze, the firm has unstaked around $247 mil­lion in Wrapped Bit­coin (wBTC) from liq­uid­i­ty pro­to­col Aave and sent it to the FTX exchange. Apart from its wBTC, the firm has also sent $74.5 mil­lion in Ether (ETH) to FTX. 

As rumors of Cel­sius’ insol­ven­cy pro­lif­er­ate, cryp­to exchange Nexo has extend­ed its hands to the lend­ing plat­form. The cryp­to firm recent­ly told Coin­tele­graph that the Nexo, along with its part­ners and affil­i­ates, is able to acquire a part or all of Cel­sius’ out­stand­ing “col­lat­er­al­ized loan receivables.” 

Relat­ed: Cel­sius (CEL) price gains 600%+, but ana­lysts cite exchange error and a mas­sive short squeeze

To quench hold­er fears amid the sit­u­a­tion at Cel­sius, sta­ble­coin issuer Teth­er (USDT) has announced that the cur­rent events sur­round­ing the lend­ing plat­form have “no impact” on Teth­er’s reserves. Accord­ing to Teth­er, while they do have an invest­ment in Cel­sius, it does­n’t have an impact on the sta­bil­i­ty of its reserves. The announce­ment also high­light­ed that the sit­u­a­tion at Cel­sius is a result of “mar­ket volatility.” 

Mean­while, cryp­to exchange Binance has also paused BTC with­drawals on its plat­form on Mon­day, just as the Cel­sius pause start­ed. How­ev­er, Binance CEO Chang­peng Zhao assured hold­ers that their funds were safe and the exchange will open with­drawals soon. On the same day, the cryp­to exchange resumed with­drawals.

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