The Celsius lending platform has hired new lawyers to advise on possible restructuring options, reports The Wall Street Journal.
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According to media reports, the platform is now working with Kirkland & Ellis LLP. The firm’s lawyers will advise Celsius on various issues, including filing for bankruptcy, sources said.
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Earlier the platform discussed restructuring with specialists from Akin Gump Strauss Hauer & Feld, media reported.
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Later it emerged that Celsius hired the financial conglomerate Citigroup to seek a solution to the problems that arose after clients’ assets were frozen.
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Existing investors are reportedly amenable to a restructuring, but will refrain from new investments in the project.
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Earlier on June 13, Celsius halted withdrawals, exchanges and transfers between accounts.
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Lawyer Adam Levitin said that the company’s bankruptcy is virtually inevitable. In his view, Celsius’s management has decided to bet on an “adventure with resurrection”.
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On July 7 Celsius fully repaid its loan in the DeFi protocol MakerDAO and withdrew a total of 23,962 WBTC collateral worth about $490 million. Just a few hours later, the platform transferred 24,463 WBTC to the address of the FTX cryptocurrency exchange.
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For more on what happened to Celsius and how the incident affected the market, read ForkLog’s cards at ForkLog cards.
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