After the crypto lending platform Celsius halted operations on June 12, at 10:10 p.m. (ET), two days later the Wall Street Journal (WSJ) quoted “people familiar with the matter” who said Celsius was hiring restructuring lawyers. At the time, the WSJ said Celsius was looking to hire the bankruptcy and restructuring law firm Akin Gump Strauss Hauer & Feld LLP. However, a new report from the WSJ claims sources say that Celsius is now working with the restructuring advisory firm Alvarez & Marsal.
Sources Say Celsius May Be Collaborating With a Restructuring Advisory Firm
The current financial situation of the crypto lending company Celsius is still unknown and since June 12, people still suspect that the firm is insolvent. Bitcoin.com News reported on the rumors and speculation that surrounds the company to this day and on June 13, the crypto lending firm Nexo offered to buy Celsius-based assets.
The reason why people suspect that Celsius is having financial hardships is because of the company’s tweet on June 12. “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, swaps, and transfers between accounts,” Celsius revealed. There’s also been speculation about Celsius having 17,919 WBTC leveraged in Maker protocol that faced liquidation.
On June 14, a WSJ report said that Celsius was looking to hire the restructuring law firm Akin Gump Strauss Hauer & Feld LLP. “People familiar with the matter” explained that Celsius was attempting to get help from investors first. At the time, Akin Gump did not comment on the matter when it was asked if the firm was involved with Celsius. Now, another WSJ report says that Celsius may be collaborating with the restructuring advisory firm Alvarez & Marsal.
