Crypto lending platform Celsius Network (CEL) has hired restructuring lawyers from Akin Gump Strauss Hauer & Feld to find potential solutions to the firm’s financial woes.
Firm reportedly seeking other strategic alternatives, such as financial restructuring, beyond trying to resolve their current problems. The report also notes that Celsius is trying to find investors who could provide funding options for the cryptocurrency company.
Citing extreme market conditions, Celsius on Monday suspended withdrawals from its platform. Amid the withdrawal freeze, the company withdrew approximately $247 million in wrapped bitcoin (wBTC) from the Aave liquidity protocol and sent it to the FTX exchange. In addition to wBTC, the company also sent $74.5 million in Ether (ETH) to FTX.
As rumors spread about Celsius’s insolvency, Nexo cryptocurrency exchange reached out its hands to the lending platform. The crypto firm recently told Cryptooshala that Nexo, along with its partners and affiliates, could acquire some or all of Celsius’ outstanding “secured loan receivables.”
The Celsius (CEL) price is up 600%+ but analysts cite an exchange error and a strong short squeeze.
To allay holders’ fears amid the Celsius situation, Tether (USDT) stablecoin issuer announced that current events related to the lending platform have “no impact” on Tether reserves. According to Tether, although they have investments in Celsius, this does not affect the stability of their reserves. The announcement also highlights that the Celsius situation is the result of “market volatility”.
Meanwhile, cryptocurrency exchange Binance also suspended BTC withdrawals on its platform on Monday, just as the Celsius pause began. However, Binance CEO Changpeng Zhao assured holders that their funds are safe and the exchange will open withdrawals soon. On the same day, the crypto exchange resumed withdrawing funds.
Credit : cointelegraph.com