Celsius Network hires advisors before a possible bankruptcy

Celsius Network hires advisors before a possible bankruptcy

The cryptocurrency lending platform Celsius Network has reportedly hired advisers from a management consulting firm in the face of the possibility of the company going bankrupt.

According to a Friday note in the Wall Street Journal, Celsius hired an unknown number of restructuring consultants from the firm Alvarez & Marsal to advise the platform on a possible bankruptcy filing. The news follows another from June 14, which said that Celsius had hired lawyers in an attempt to restructure the company amid its financial troubles.

Celsius has been at the forefront of discussions in the media surrounding significant market volatility amid the cryptocurrency lending platform’s decision to pause “all withdrawals, trades, and transfers between accounts” on June 12. June. CEO Alex Mashinsky and other senior Celsius executives have been largely silent on social media since that announcement, with the platform saying on June 19 that it would suspend discussions on “Twitter Spaces and AMAs” to focus on addressing issues with its operations.

State authorities have turned their attention to Celsius following the platform’s decision to suspend withdrawals. On June 16, Texas Securities Board control division director Joseph Rotunda told Cointelegraph that regulators in Alabama, Kentucky, New Jersey, Texas, and Washington were “looking into the matter of frozen accounts.” in Celsius.

On June 20, Celsius investor and co-founder of BnkToTheFuture, Simon Dixon, proposed a recovery plan intended for the crypto lending platform to take a similar approach to Bitfinex in 2016, using a “financial innovation” solution. As of November 2021, Celsius was valued at $3.5 billion following a $750 million Series B funding round, which may have fallen given the recent market downturn.

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