According to media reports, the crypto savings platform Celsius Network has sought further external help to stop the impending insolvency.
As the Wall Street Journal reported on Friday, Celsius has now probably brought several insolvency administrators from the economic consultancy Alvarez & Marsal on board, who are supposed to show the crypto company how an insolvency can be prevented or possibly settled. The involvement of external consultants is not reprehensible in and of itself, however, the crypto Savings Bank had already hired a “debtor consultant” on June 14, who was supposed to help with the restructuring of liabilities. Against this background, further externals probably mean nothing good.
Steady lads https://t.co/5YAdmq5kt8
– Ben McKenzie (@ben_mckenzie) June 24, 2022
Celsius has been in the spotlight of the crypto industry since mid-June, after the savings platform itself faltered due to the imbalance in the crypto market and then decided to “temporarily turn off all withdrawals”. Since the announcement on June 12, CEO Alex Mashinsky and the management have been largely silent, and a week later the company had confirmed that it would initially reduce public communication.
Meanwhile, the American supervisory authorities in the states of Texas, Alabama, Kentucky, New Jersey and Washington have also set their sights on the developments around Celsius, because as Joseph Rotunda from the Texas Securities and Exchange Commission explains, the withdrawal freeze and the impending total loss of invested Bitcoin primarily affects small private investors, who may need access to their funds all the more urgently in a difficult macroeconomic situation.
The users of the German Neobank Nuri are also directly threatened by the dilemma of Celsius, because the Bitcoin income account of the financial service provider is based on cooperation with the faltering crypto company.
