Crypto lending platform Celsius Network (CEL) has onboarded restructuring legal professionals from Akin Gump Strauss Hauer & Feld to seek out potential options to the agency’s monetary woes.
The agency is reportedly searching for different strategic alternate options, akin to a monetary restructuring, other than its makes an attempt to resolve its present issues. The report additionally famous that Celsius is looking for buyers who would be capable of present financing choices for the crypto lending firm.
Citing excessive market circumstances, Celsius paused withdrawals from its platform on Monday. Amid the withdrawal freeze, the agency has unstaked round $247 million in Wrapped Bitcoin (wBTC) from liquidity protocol Aave and despatched it to the FTX alternate. Apart from its wBTC, the agency has additionally despatched $74.5 million in Ether (ETH) to FTX.
As rumors of Celsius’ insolvency proliferate, crypto alternate Nexo has prolonged its arms to the lending platform. The crypto agency not too long ago advised Cointelegraph that the Nexo, together with its companions and associates, is ready to purchase a component or all of Celsius’ excellent “collateralized mortgage receivables.”
Related: Celsius (CEL) value beneficial properties 600%+, however analysts cite alternate error and an enormous brief squeeze
To quench holder fears amid the scenario at Celsius, stablecoin issuer Tether (USDT) has introduced that the present occasions surrounding the lending platform have “no affect” on Tether’s reserves. According to Tether, whereas they do have an funding in Celsius, it does not have an effect on the soundness of its reserves. The announcement additionally highlighted that the scenario at Celsius is a results of “market volatility.”
Meanwhile, crypto alternate Binance has additionally paused BTC withdrawals on its platform on Monday, simply because the Celsius pause began. However, Binance CEO Changpeng Zhao assured holders that their funds have been protected and the alternate will open withdrawals quickly. On the identical day, the crypto alternate resumed withdrawals.