Celsius is reportedly onboarding attorneys for a reshuffle

Celsius reportedly seeks advice from lawyers on restructuring to find solutions to the current financial challenges it faces.

The cryptocurrency platform Celsius Network (CEL) has onboard the lawyers of Akin Gump Strauss Hauer & Feld to find possible solutions to the firm’s financial problems.

The firm is looking at other strategic options, such as a financial restructuring, and trying to solve its current problems.  The report further states that Celsius is trying to find investors who will be able to provide financing options for the crypto lending company.

 Citing extreme market conditions, Celsius stopped withdrawing from its platform on Monday.  Within the withdrawal freeze, the firm released about $ 247 million worth of wrapped bitcoin (wBTC) from liquidity protocol Aave and sent it to the FTX exchange.  In addition to its wBTC, the firm sent $ 74.5 million to Ether (ETH) on FTX.

Rumours of Celsius bankruptcy have spread, with crypto exchange Nexo reaching out to lending platforms.  The crypto firm recently told Cointelegraph that Nexo, along with its partners and affiliates, is capable of acquiring an outstanding portion of Celsius or all “collateralized loan receivables.”

To allay holders’ fears in the Celsius situation, Stablecoin issuer Tether (USDT) has announced that current events surrounding the lending platform will have “no impact” on Tether’s reserves.  According to Tether, having their investment in Celsius has no effect on the stability of its reserves.  The announcement further highlights that the Celsius situation results from “market volatility”.

Meanwhile, crypto exchange Binance on Monday suspended the withdrawal of BTC on its platform, just as the Celsius break had begun.  However, Binance CEO Changpeng Zhao assured the holders that their funds were safe and the exchange would open withdrawals soon.  On the same day, the crypto exchange started withdrawals again.