Celsius hires lawyers to restructure business after freezing withdrawals

(Reuters) – Crypto lender Celsius Network LLC has hired restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld LLP to advise on possible solutions for its mounting financial problems, the Wall Street Journal reported https://on.wsj.com/3zDL82U on Tuesday.

Celsius is first looking for possible financing options from investors, but is also exploring other strategic alternatives, including a financial restructuring, the newspaper said, citing people familiar with the matter.

Celsius Network and Akin Gump did not immediately respond to Reuters’ requests for comment.

The crypto lender said on Sunday it was pausing all swaps, transfers and withdrawals between accounts due to extreme market conditions.

The Celsius move triggered a slide across cryptocurrencies, with their value dropping below $1 trillion on Monday for the first time since January 2021.

As of May 17, Celsius had $11.8 billion in assets, its website showed, down by more than half from October, and had processed a total of $8.2 billion worth of loans.

Rival crypto lender Nexo said on Monday it had offered to buy Celsius’ outstanding assets.

(Reporting by Mrinmay Dey in Bengaluru; Editing by Subhranshu Sahu)