By hiring professional attorneys, the crypto lending platform seeks to find solutions to its financial challenges.
According to a statement issued on June 14, Celsius Network (CEL) is reportedly seeking help from restructuring lawyers to get professional advice on the firm’s financial problems.
The crypto company will be onboarding the bankruptcy and restructuring law firm dubbed Akin Gump Strauss Hauer & Feld to search for some possible financing possibilities from investors. On top of that, Celsius will also be exploring other strategic options, such as financial restructuring.
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What is a Rug Pull in Crypto? (Meaning + Examples)
Last week, Celsius reported that it would be pausing all withdrawals and transfers between accounts due to the current crypto bear market. Since then, Celsius Coin (CEL) has fallen around 53% of its initial value.
However, it seems as though there is a glimmer of hope for the crypto exchange after all. Earlier in June, Nexo, the world's leading regulated organization for digital assets, showed interest and stated that it would buy particular digital assets from Celsius's "collateralized loan receivables."
Right after, stablecoin issuer Tether (USDT) reassured investors that the fall of the major US cryptocurrency lending and staking organization Celsius network and its token CEL won’t have any impact on USDT reserves.
On top of that, the world’s biggest cryptocurrency exchange Binance also disabled the ability of its users to make Bitcoin (BTC) withdrawals “due to a stuck transaction causing a backlog.” After several hours, the exchange resumed the withdrawals on the BTC network.