Reportedly, the crypto loan platform Celsius Network has incorporated advisors from a management consulting firm before the company could possibly face bankruptcy.
According to a Friday report from the Wall Street Journal, Celsius hired an unknown number of restructuring consultants from the firm Alvarez & Marsal to advise the platform on a possible bankruptcy filing. The report followed one on June 14, which said Celsius had hired lawyers in an attempt to restructure the company amid its financial problems.
Nois ferms https://t.co/5YAdmq5kt8
– Ben McKenzie (@ben_mckenzie) June 24, 2022
Celsius has been at the forefront of discussions in the media about significant market volatility amid the cryptocurrency platform’s decision to stop “all withdrawals, swaps and transfers between accounts” on June 12th. CEO Alex Mashinsky and other Celsius senior executives have been largely silent on social media since that announcement, the platform said on June 19 that it would suspend discussions on “Twitter and AMA Spaces” to focus on address issues with their operations.
State authorities have turned their attention to Celsius following the platform’s decision to suspend the withdrawals. On June 16, the director of the enforcement division of the Texas State Securities Board, Joseph Rotunda, told Cointelegraph that regulators in Alabama, Kentucky, New Jersey, Texas and Washington were “studying the problem of frozen accounts “in Celsius.
Related: Risky Business: Celsius Crisis and Hated Accredited Investor Laws
On June 20, Celsius investor and co-founder of BnkToTheFuture, Simon Dixon, proposed a recovery plan with the goal that the cryptocurrency lending platform would take a similar approach to Bitfinex in 2016, using a solution of ” financial innovation “. In November 2021, Celsius had a valuation of $ 3.5 after a round of Series B funding of $ 750 million, which may have fallen due to the recent market crash.