Crypto Lender Celsius Hires Restructuring Lawyers After Account Freeze

The Wall Street Journal reported on Tuesday that cryptocurrency lender Celsius Network LLC has hired restructuring counsel from law firm Akin Gump Strauss Hauer & Feld LLP to assist with possible remedies to its escalating financial troubles. According to the report, Celsius first seeks future financing possibilities from investors. Still, it also considers other strategic options, such as a financial reorganization. Due to the extreme volatile market conditions, the crypto lender halted all swaps, transfers, and withdrawals between accounts on Sunday. The action by Celsius caused a sell-off in cryptocurrencies, with their value falling below $1 trillion for the first time since January 2021 on Monday. .@CelsiusNetwork is pausing all withdrawals, Swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community. More here: https://t.co/CvjORUICs2 — Celsius (@CelsiusNetwork) June 13, 2022 Celsius $11.8 Billion Assets According to its website, Celsius had $11.8 billion in assets as of May 17, down more than half from October, and had processed $8.2 billion in loans. While the TerraUSD (UST) stablecoin’s demise drew most of the market’s attention, one of the project’s key draws for investors was its promised interest rate, which was set as high as 20% for UST deposits in the Terra blockchain-based lending initiati...