The “Krypto-Sparkasse” Celsius Network (CEL) is now bringing in an external “debtor advisor” from the law firm Akin Gump Strauss Hauer & Feld to correct the financial situation.
With the courage of desperation, the crypto savings platform is now also trying out alternative ways of solving problems. For example, an external consultant has now been brought in to help the crypto company restructure the debt. In addition, new investors are urgently needed who could provide new liquidity.
On Monday, the savings platform announced that all withdrawals will be temporarily suspended due to “extreme market conditions”. In the course of this, Celsius has withdrawn 247 million wrapped Bitcoin (wBTC) from the DeFi protocol Aave and transferred it to the FTX trading platform. In addition, $74.5 million of ether (ETH) was also transferred to the crypto exchange. Observers assume that these crypto funds are to be sold in order to bridge a liquidity bottleneck. In connection with the payment stoppage, a clear indication that the company may be threatened with insolvency.
These developments are now even spreading to Germany, because the German fintech Nuri works closely with Celsius on their Bitcoin earnings account. Accordingly, German crypto investors are currently unable to withdraw their Bitcoin invested in the income accounts, because they are also affected by the stop. In the event of an insolvency of Celsius, savers are even threatened with a total loss, because the Berlin Neobank assumes no liability for such deposits.
Meanwhile, stablecoin publisher Tether (USDT) has stressed that the problems at Celsius have no effect on its own reserves. Although the market-leading crypto company acts as a lender for the savings platform and has also invested proportionally in it, a possible insolvency would not pose a threat to the stability of the stablecoin.
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