Monday, May 27, 2024

Celsius Network to restructure in an effort to stabilize liquidity and operations.

In an effort to stabilize liquidity and operations, the Celsius Network has pulled in attorneys Akin Gump Strauss Hauer & Feld LLP to help in the restructuring process. The crypto lender wants to take steps to preserve and protect assets

Celsius is considering alternative financing from investors for a different financial structure altogether. This comes after it suspended withdrawal services, swaps, and transfers due to a turbulent crypto market. Nansen, a research firm added fuel to speculations that Celsius was partly responsible for the collapse of Terra’s stablecoin UST. Akin Grump is among the top three restructuring firms in “Global Restructuring Review”. It has successfully led a restructuring of Nordic Aviation Capital Designated Activity Company (NAC).

Celsius’ suspension of withdrawals triggered a slide across the broader crypto market. The firm said this action was needed to put Celsius in a better position to honor its withdrawal obligations. Celsius’ token also fell by nearly 97% in the last 12 months to a mere 20 cents from the highs of $7.

The value of the crypto market dropped below $1 trillion on Monday for the first time since January of 2021. This has gotten investors worried about it spilling over into other assets or hitting other companies. Joseph Edwards, the head of financial strategy at Solrise Finance, says there’s some contagion risk around crypto more broadly.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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