News

#The Wall Street Journal: Crypto lender Celsius hires restructuring lawyers amid mounting problems

Table of Contents

“The Wall Street Journal: Crypto lender Celsius hires restructuring lawyers amid mounting problems”

Withdrawals were halted Sunday; company now looking at possible financing options

Crypto lender Celsius Network LLC has hired restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld LLP to advise on possible solutions for its mounting financial problems, according to people familiar with the matter.

On Sunday, Celsius told users that it was pausing all withdrawals, swaps and transfers between accounts because of extreme market volatility.

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

Celsius lends out customer deposits to other users to earn a return. The company managed $11.8 billion in assets as of May 17, according to its website. It offers users annual percentage yields of up to 18.63% on cryptocurrency deposits. The company said it has 1.7 million users.

A spokeswoman for Akin Gump had no immediate comment. Celsius executives didn’t immediately respond to requests for comment.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

How the Fed and the Biden administration got inflation wrong.

Stores have too much stuff. Here’s where they’re slashing prices.

Soma Biswas

Alexander Gladstone

If you liked the article, do not forget to share it with your friends. Follow us on Google News too, click on the star and choose us from your favorites.