Cryptocurrency lender Celsius is attempting to recover from the hypothermia brought on by the crypto winter and re-establish itself as a trustworthy business, regaining its confidence. And to do this, it is to consult legal authorities.
The Wall Street Journal reported that Celsius hired the law firm Kirkland & Ellis LLP to help them with their restructuring process and lessen the financial burden that grew out of control as a result of Terra’s failure, Lido’s de-pegging of its stETH token, and the general decline of the cryptocurrency market.
After ceasing customer withdrawals, swaps, and transfers on June 13 to consider a potential reorganization, Celsius previously retained the legal services of Akin Gump Strauss Hauer & Feld LLP in mid-June. Millions of dollars in client cash are still unaccounted for as the corporation has failed to reopen withdrawals.
Key Highlights:
- Celsius’s previous restructuring counsel has been replaced by Kirkland & Ellis LLP.
- Kirkland & Ellis will counsel Celsius on various choices, including bankruptcy and debt restructuring.
- It looks like Celsius is working to settle its payments to DeFi protocols rather than declaring bankruptcy.
According to reports, Kirkland & Ellis is the same company that Voyager Digital has chosen as general counsel for its bankruptcy procedures. The application was made a few weeks after Three Arrows Capital, also known as 3AC, a cryptocurrency exchange with headquarters in Singapore, received a default notice from Voyager.
Customers were offered astronomically high-interest rates of up to 18 percent on their cryptocurrency investments by Celsius. However, according to a Bloomberg story, the company’s creator Alex Mashinsky said that Celsius was able to generate high rates on its own to allay concerns about the interest rates.
Zapper, a DeFi tracking website, reports that Celsius presently owes Aave 130 million USDC, $82,500 in REN tokens, and about 85.2 million DAI tokens, for a total debt of $215 million.
