Celsius Network, a renowned crypto lending firm, has hired ‘restructuring lawyers’ amid the current crypto meltdown that has seen the largest cryptocurrency Bitcoin (BTC) lose about 40% over the past week.
Celsius has reportedly hired attorneys from a law firm called Akin Gump Strauss Hauer & Feld LLP to advise on the way forward as its financial woes pile up due to the falling crypto market prices.
The hiring of restructuring lawyers comes days after the crypto lender told its users that it was pausing withdrawals, swaps, and internal transfers because of extreme market volatility.
Interestingly, CEL, the native token of Celsius Network, is among the cryptocurrencies that have remained green today. At the time of writing, the price of CEL was up by about 51% over the past 24 hours.
However, CEL had pumped to above $1.1 yesterday before dumping to its current price of $0.4819. There are still no concrete reasons as to why CEL is rising especially since this is happening as activities on Celsius Network remain paused indefinitely.
While Celsius is said to be looking for financial solutions from investors, it is also exploring other alternatives including a possible financial restructuring.
Currently, Celsius lends out customer deposits to other users and in return earns some interest. The company manages over $11.8 billion in crypto assets and offers percentage yields as high as 18.63% of crypto deposits.
Celsius’ move comes as lawmakers around the world start exploring what would happen if crypto platforms fail especially now that cryptocurrencies have lost a lot of value. A bipartisan duo of US senators last week proposed a bill aimed at protecting investors in an event that a cryptocurrency exchange files for bankruptcy. The bill seeks to ensure that customers’ digital assets are held in a separate account from a company’s account.