Sunday, March 3, 2024

Celsius Is Hiring Restructuring Attorneys, Explores Financing Options

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Celsius is hiring restructuring attorneys and is looking for alternative financing options after freezing the withdrawal feature on Sunday so let’s read more today in our latest cryptocurrency news.

Crypto lender Celsius is hiring restructuring attorneys from the law company Akin Gump Strauss Hauer & Feld LLP To seek for assistance on the current financial issues as per the Wall Street Journal citing people familiar with the matter. Celsius is also looking for other financing options from investors but the New Jersey-based company is not ruling out alternatives such as financial restructuring. Valued at $3.5 billion after raising $750 million in Series B funding last November celsius sent some shockwaves in the market when it announced the suspension of the withdrawal feature.

The company cited extreme market conditions and a need to stabilize liquidity as a reason for the move. Before pausing operations, Celsius claimed it had a user base of 1.7 million and offered high yields of up to 18% on the customer deposits to the company’s website, it had about $11.8 billion in assets under management. The company announced on Twitter that is working as fast as possible and will share more information when it becomes appropriate:

“Acting in the interest of our community remains our top priority.”

CEL as the platform’s native token dropped to as low as $0.31 after the Sunday announcement and lost about 70% of its value in a few hours. The token rallied $1.10 before correcting to a current value of $0.49 or up by 50% on the day.

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As recently reported, The controversial events around Celsius Network continue unfolding as the team unstaked millions of dollars in crypto from Aave and moved them to FTX but so far, the proejct hasn’t provided a reason why. The transaction started during the weekend with the first batch seeing 3500 WBTC and 50,000 ETH which continued to increase in the next few hours. The on-chain data shows that Celsius sent over 100,000 ETH to FTX in the past few days and 9500 WBTC as well but the staking and lending platform transferred other tokens as well like MATIC, UNI, FTT, and more. Overall, the total amount sent is around $320 million.

Celsius transferred funds to FTX but there’s still no official comment on the transfers. The only communication that came from the team was the announcement halting all user services such as withdrawals.

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