Crypto lending platform Celsius Network (CEL) has onboarded restructuring lawyers from Akin Gump Strauss Hauer & Feld to locate potential methods to the firm’s financial woes.
The firm is apparently searching for other proper alternatives, like a financial restructuring, aside from its tries to solve its current problems. The report also noted that Celsius is looking for investors who could provide financing choices for the crypto loan company.
Citing extreme market conditions, Celsius stopped withdrawals from the platform on Monday. Among the withdrawal freeze, the firm has unstaked around $247 million in Wrapped Bitcoin (wBTC) from liquidity protocol Aave and sent it towards the FTX exchange. Aside from its wBTC, the firm has additionally sent $74.5 million in Ether (ETH) to FTX.
As rumors of Celsius’ insolvency proliferate, crypto exchange Nexo has extended its hands towards the lending platform. The crypto firm lately told Cointelegraph the Nexo, and its partners and affiliates, is able to get a part or all of Celsius’ outstanding “collateralized loan receivables.”
Related: Celsius (CEL) cost gains 600%+, but analysts cite exchange error along with a massive short squeeze
To quench holder fears among the problem at Celsius, stablecoin issuer Tether (USDT) has announced the current occasions all around the lending platform have “no impact” on Tether’s reserves. Based on Tether, when they will have a good investment in Celsius, it does not have an affect on the soundness of their reserves. The announcement also highlighted the situation at Celsius is because of “market volatility.”
Meanwhile, crypto exchange Binance has additionally stopped BTC withdrawals on its platform on Monday, just like the Celsius pause began. However, Binance Chief executive officer Changpeng Zhao assured holders their funds were safe and also the exchange will open withdrawals soon. On the day that, the crypto exchange started again withdrawals.
