Celcius Reportedly Hiring ‘Restructuring Lawyers’ as Bankruptcy Speculation Mounts, CEL Pumps & Dumps
A torrid week for the users and operators of the crypto lender Celsius Network (CEL) is continuing – with restructuring lawyers reportedly called in to help enact emergency measures. Meanwhile, CEL is on a roller coaster today.
The news, reported by the Wall Street Journal, comes after the lender faced mass liquidations, talk of insolvency, and threats of legal action. The firm on Monday suspended swaps, withdrawals, and transfers between accounts as markets shook, risking the fury of investors.
The WSJ quoted “people familiar with the matter” as stating that Celsius had “hired restructuring attorneys” from the law firm Akin Gump Strauss Hauer & Feld “to advise on possible solutions” for its “mounting financial problems.”
The media outlet suggested that restructuring is still a worst-case scenario for Celsius, which is “first looking for possible financing options from investors.” However, it appears to want a Plan B, as it is “exploring other strategic alternatives, including a financial restructuring,” according to “one of the people familiar with the matter.”
Both the legal firm and Celsius executives declined the WSJ’s requests for comment on the matter.
Social media-based observers have claimed that Celcius could file for bankruptcy. Restructuring lawyers’ work often centers on bankruptcy procedures, but can also deal with a range of other financial matters, including new investments and debt rescheduling.
Earlier this week, Celcius said that it was “acting in the interest of our community,” which was its “top priority.”
Amid the confusion, a bogus token claiming to be a Celcius network reboot has also emerged, while multiple reports have claimed the firm made a number of large crypto movements before or around the time
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