Celsius Enlists Advisers for Potential Bankruptcy, According to WSJ Report

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  • Cel­sius has hired restruc­tur­ing con­sul­tants from advi­so­ry firm Alvarez & Marsal, accord­ing to the WSJ
  • The last pub­lic com­mu­ni­ca­tion from the Cel­sius team came via blog post on June 19, one week after it announced the halt

Cel­sius has hired restruc­tur­ing con­sul­tants in prepa­ra­tion for a poten­tial bank­rupt­cy fil­ing, the Wall Street Jour­nal report­ed Fri­day, cit­ing peo­ple famil­iar with the matter. 

The cryp­to lend­ing firm — which ear­li­er this month halt­ed with­drawals, swaps and trans­fers — has report­ed­ly hired three con­sul­tants from advi­so­ry firm Alvarez & Marsal. 

If the lend­ing firm declares bank­rupt­cy, there is no guar­an­tee cus­tomers will be able to recov­er any funds held on the platform. 

“In the event that Cel­sius becomes bank­rupt, enters liq­ui­da­tion or is oth­er­wise unable to repay its oblig­a­tions, you may not be able to recov­er or regain own­er­ship of such Dig­i­tal Assets,” Celsius’s terms of use state.

The last pub­lic com­mu­ni­ca­tion from the Cel­sius team came via blog post on June 19, one week after the halt. 

“As has been a pri­or­i­ty since our company’s incep­tion, we main­tain an open dia­logue with reg­u­la­tors and offi­cials,” the post read. “We plan to con­tin­ue work­ing with reg­u­la­tors and offi­cials regard­ing this pause and our company’s deter­mi­na­tion to find a resolution.” 

The post did not address the poten­tial for bank­rupt­cy or the sta­tus of con­sumer funds. 

The lender ini­tial­ly halt­ed with­drawals, swaps and trans­fers in an attempt to “sta­bi­lize our liq­uid­i­ty and oper­a­tions,” amid volatile mar­ket con­di­tions, the com­pa­ny said. Cel­sius has also paused its week­ly ques­tion and answer ses­sions with the com­mu­ni­ty until fur­ther notice. 

Cel­sius did not imme­di­ate­ly respond to a request for comment.


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  • Casey Wag­n­er

    Block­works

    Senior Reporter

    Casey Wag­n­er is a New York-based busi­ness jour­nal­ist cov­er­ing reg­u­la­tion, leg­is­la­tion, dig­i­tal asset invest­ment firms, mar­ket struc­ture, cen­tral banks and gov­ern­ments, and CBD­Cs. Pri­or to join­ing Block­works, she report­ed on mar­kets at Bloomberg News. She grad­u­at­ed from the Uni­ver­si­ty of Vir­ginia with a degree in Media Studies.

    Con­tact Casey via email at [email pro­tect­ed]

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