Celsius Network Is Exploring Possible Financial Restructuring After Pausing Its WithdrawalsJune 15, 2022
After pausing withdrawals, Celsius Network is considering financial restructuring.
According to a recent Wall Street Journal report, the crypto lending platform Celsius Network has hired restructuring attorneys from the law firm Akin Gump Strauss Hauer and Feld to seek aid with the company’s current financial troubles.
Celsius Network seeks additional assistance and intends to investigate financial restructuring.
According to the WSJ, Celsius is also seeking for possible financing possibilities from other investors, but is also considering other measures, such as financial restructuring, to keep afloat in uncertain times, citing people familiar with the subject.
Celsius, dubbed one of the top crypto lenders, shocked the internet when it declared a halt to withdrawals, swaps, and transfers due to “extreme market conditions.”
Over the years, the crypto lender platform has built a successful reputation as a major provider of crypto loans and interest on crypto deposits.
With its latest pause, however, numerous cryptocurrency opponents were quick to characterize the firm’s antics as “Ponzi,” unable to save itself from the unfavorable market trends.
According to Coinmarketcap, the company’s native cryptocurrency CEL is currently trading at $0.4819, representing a roughly 90% drop from its previous value of $3 in April 2022.
However, on June 14, the CEL token regained part of its strength after receiving three DAI purchases totaling $28 million. According to Etherscan data, these transactions were initiated from an Ethereum contract address signifying an Oasis loan.
The move by Celsius Network to cease its withdrawal appears to have had an influence on the crypto market, with its overall market cap falling below $1 trillion on June 13.
Soon after Celsius announced its plan to halt withdrawals, the value of Bitcoin plummeted below $24,000, its lowest level since January 2021.