According to the Wall Street Journal, Celsius Network LLC has engaged new lawyers to assist the struggling cryptocurrency lender with restructuring.
To avoid the recent upheaval in cryptocurrency markets, a much-needed reorganization plan has emerged.
In order to advise Celsius on several alternatives, including the bankruptcy filing Kirkland & Ellis LLP lawyers have been hired and have taken over for Akin Gump Strauss Hauer & Feld LLP, the company’s prior main restructuring counsel.
The company has been in an unstable liquidity situation since its stalling as a result of the market crash. Celsius has hired a team of restructuring lawyers and recruited Citigroup to assist it with prospective funding options as part of its recovery efforts.
With two new members appointed last week, Celsius is also reconfiguring its board.
Customers of the company, which had $11.8 billion in assets and 1.7 million users in May, have been unable to access their Celsius accounts for over a month after the company paused customer withdrawals as cryptocurrency prices fell. According to those acquainted with the company’s circumstances, Celsius was trying to avoid prolonged bankruptcy proceedings.
Celsius informed the community in a blog post on June 30 that it was continuing to take “important steps to preserve and protect assets and explore options available to us.”