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.