Following the speculation around Celsius, a crypto lending firm, reports from Wall Street made by people familiar with the matter indicate that the company is hiring lawyers to help with restructuring. When a company is in financial turmoil, the first step is hiring restructuring attorneys to avoid insolvency.  

Celsius Looking for help from Investors, Insolvency Attorneys

13th June 2022 will go down in the history of the crypto industry as the day when Celsius shut down specific operations, including account transfers, swaps, and withdrawals. The company is yet to resume its operations by the time of writing this post, and one of the reports by Wall Street showed it might be seeking the assistance of a restructuring firm of attorneys. 

The report says that the crypto company may be seeking the services of bankruptcy and restructuring company Akin Gump Strauss Hauer & Feld LLP. The author of the report, Alexander Gladstone, noted that Celsius is first trying to get the assistance of investors. “Celsius is first looking for possible financing options from investors but is also exploring other strategic alternatives, including a financial restructuring, one of the people familiar with the matter said,” Gladstone noted in the report. 

Unconfirmed news about insolvency at Celsius sent shock waves of fear to the entire crypto industry. Note that it is coming hot on the heels of another fiasco, the Terra ecosystem collapse of early May. Now, speculators are of the view that about USD2 billion worth of BTC is caught up in Celsius accounts and loans. Even after the Terra LUNA and UST collapse, Celsius still indicated it had up to USD11 million under its management. 

Gladstone indicated that he reached out to the Akin Gump but was yet to receive a comment. Also, Celsius did not provide replies to queries put forth about the lurking danger of insolvency.