Celsius Network is employing new attorneys to carry out its restructuring. According to a WSJ article, the company will now seek legal counsel from Kirkland & Ellis LLP.
After suspending withdrawals for many weeks due to “extreme market circumstances,” the major cryptocurrency lending platform Celsius Network has engaged new attorneys for restructuring reasons.
As previously reported, the company engaged Akin Gump Strauss Hauer & Feld LLP after suspending cryptocurrency withdrawals and deposits on its platform last month. WSJ reports that the company has now hired Kirkland & Ellis LLP to manage its restructuring proceedings.
WSJ stated that Celsius hired attorneys from Kirkland & Ellis LLP to advise on possibilities including a bankruptcy case.
Restructuring is one of the most important aspects of corporate culture and is described as a court-approved procedure in which a company restructures or reorganises its finances to pay back its creditors when under financial pressure.
Celsius Network said on June 12 that it will suspend crypto withdrawals, deposits, and swaps on its platform, citing harsh market circumstances. Later, the company published a statement clarifying that clients would continue to earn rewards during the “pause in accordance with our consumer agreements.”
We know this is bad news, but we feel pausing withdrawals, Swap, and account transfers is the best way to safeguard our community. Our only objective is to safeguard and maintain assets in order to fulfil our responsibilities to clients.” The blog was subsequently added.
Several Twitter users reportedly referred to Celsius Network as a cryptocurrency Ponzi scam shortly after the launch.
Despite this, it seems that the Celsius Network is skillfully managing its present crisis. According to reports, the company has already paid Maker platform $120 million and is implementing new strategies to manage its present financial issue.
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