Celsius Network hires advisers ahead of potential bankruptcy: report
Crypto lending platform Celsius Network reportedly onboarded advisers from a management consulting firm before the company was threatened with bankruptcy.
According to a Friday report from the Wall Street Journal, Celsius hiring an unknown number of restructuring consultants from Alvarez & Marsal to advise the platform on a potential bankruptcy filing. The report followed one on June 14, which said Celsius had hired lawyers in a bid to restructure the company amid its financial troubles.
Stable boys https://t.co/5YAdmq5kt8
—Ben McKenzie (@ben_mckenzie) June 24, 2022
Celsius has been at the forefront of media discussions regarding significant market volatility amid the crypto lending platform’s decision to suspend “all withdrawals, trades and inter-account transfers” on June 12. . CEO Alex Mashinsky and other senior Celsius officials have been largely silent on social media since that announcement, with the platform saying on June 19, it would suspend talks on “Twitter Spaces and AMA” to focus on resolving issues with its operations.
State authorities have turned their attention to Celsius following the platform’s decision to suspend withdrawals. On June 16, Joseph Rotunda, director of the enforcement division of the Texas State Securities Board, told Cointelegraph that regulators in Alabama, Kentucky, New Jersey, Texas and Washington were “looking into the problem of frozen accounts” at Celsius.
Related: Risky Business: The Celsius Crisis and the Hated Accredited Investor Laws
On June 20, Celsius investor and BnkToTheFuture co-founder Simon Dixon proposed a stimulus package aimed at having the crypto lending platform take a similar approach to Bitfinex in 2016, using a solution of “financial innovation”. In November 2021, Celsius had a valuation of $3.5 following a $750m Series B funding round, which may have fallen given the recent market downturn.