Celsius Network is reportedly hiring new lawyers to carry out a planned restructuring process. According to a Wall Street Journal report, the company will now seek legal support from Kirkland/Ellis LLP.
A few weeks after the suspension of withdrawals, citing extreme market conditions, the leading crypto lending platform Celsius Network recently hired new contenders for a planned restructuring.
As previously reported, the company Akin Gump hired Strauss Hauer &Feld LLP last month after the crypto suspended withdrawals and deposits on their platform. However, according to the WSJ, Celsius Network has now brought Kirkland & Ellis LLP on board with the settlement.
The WSJ reported:
“Celsius has called in lawyers from Kirkland & Ellis LLP to advise on options including an insolvency application.”
The restructuring process is one of the most important elements of the corporate structure and is defined as a process that includes a court-approved plan. The company wants to restructure or reorganize its finances in order to repay its creditors under financial constraints.
On June 12, citing extreme market conditions, Celsius Network announced its decision to stop deposits and swaps on crypto withdrawals on its platform. Later, the company said in a statement that during the break, however, in line with obligations to customers, customers will continue to receive rewards.
“We understand that this news is difficult, but we believe that our decision to pause withdrawals, swaps and transfers between accounts is the most responsible action we can take to protect our community. We work with a single focus: to protect and preserve assets in order to fulfill our obligations to customers.”
After the announcement, Celsius Network was involved in many controversies and was allegedly called a Ponzi scheme by several users on Twitter.
As it stands at the moment, the company seems to be managing its current state quite strategically. The company has already paid a sum of $120 million to the Maker platform and is reportedly implementing new methods to deal with its current debt crisis.
