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Crypto Lender Celsius Hired a Restructuring Attorney After Account Freezes


Last week, Celsius Network informed users that it was suspending all withdrawals, swaps and transfers between accounts.


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DADO RUVIC / REUTERS

Cryptocurrency lender C Network LLC has hired restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld LLP to advise on possible solutions to its growing financial problems, according to a report. people familiar with the matter.

Last week

Poison

tells users that it is suspending all withdrawals, swaps and transfers between accounts due to market volatility.

Celsius is first looking for possible funding options from investors but is also exploring other strategic alternatives, including financial restructuring, one of the people familiar with the matter said. this said.

Celsius lends customer deposits to other users for profit. The company manages $11.8 billion in assets as of May 17, according to its website. It offers users an annual percentage yield of up to 18.63% on crypto deposits. The company says it has 1.7 million users.

A spokesperson for Akin Gump was not immediately available for comment. Celsius executives did not immediately respond to requests for comment.

Lawmakers are recently turning their attention to what could happen if a crypto platform fails. Last week’s bipartisan senatorial duo propose a law That would aim to protect investors in the event a crypto exchange files for bankruptcy by ensuring that their digital assets are kept separate.

Write letter for Soma Biswas at [email protected] and Alexander Gladstone at [email protected]

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