The Celsius network is attempting to avoid filing for bankruptcy.
Terra Classic (LUNC-USD) seems to be being replaced by Celsius (CEL-USD) as the market’s newest, biggest debate. The company’s shoddy business practices, dubious deals, and potential criminal conduct are starting to hit them. The corporation is restructuring its legal staff as it initiates bankruptcy procedures, according to this week’s Celsius cryptocurrency news.
As a trading, staking, and lending platform for cryptocurrencies, Celsius established a reputation for itself. But over the course of the past five weeks, everything fell apart nearly as swiftly as it had risen to fame. The company’s decision to prohibit withdrawals from all of its services, preventing any of its 500,000 subscribers from taking their money out, set off the commotion. Investors harshly condemned the action, comparing it to Robinhood’s (NASDAQ:HOOD) parody stock trading freeze at the beginning of last year.
KeyFi, a DeFi aggregator, has lately made several charges that have fanned the fires of contention. According to reports, KeyFi worked behind the scenes to invest Celsius’ funds on behalf of the business. As part of Arkham Intelligence’s Celsius investigation, which charged Celsius of mismanaging client money via high-risk trading, the platform had been named as a Celsius business partner.
Because Celsius disregarded their handshake agreement on KeyFi’s pay, the business is suing him. Investors should pay closer attention to KeyFi’s allegations that Celsius acts like a Ponzi scheme.
Celsius Bitcoin News: Network Hires New Attorneys
According to today’s Celsius cryptocurrency news, the corporation is stepping its efforts to right its adrift ship. The news of a legal team shuffle is the most noteworthy. Additionally, it seems that the business is making efforts to lower its debt.
For assistance in navigating a possible bankruptcy filing, the business has hired a legal team from the law firm Kirkland & Ellis LLP. For Celsius, this is not their first team. It had previously employed attorneys from Akin Gump Strauss Hauer & Feld and consultants from consultancy company Alvarez & Marsal.
The pick of Kirkland & Ellis as the legal team is intriguing given their previous work with Voyager Digital (OTCMKTS:VYGVF). The company’s extensive exposure to the Terra Classic network led to its own insolvency predicament. The company is assisting Voyager in managing a debt of between $1 billion and $10 billion.
According to reports, Celsius is also settling its obligations with other DeFi platforms in an effort to stay ahead of this debt and lessen the harm. A $20 million debt owing to the Aave (AAVE-USD) platform was paid off today. It’s a respectable start for a business that still has a lot of debt to pay off; Celsius still owes Aave and the Compound (COMP-USD) network around $215 million.