Celsius Network hires a new legal team amid paying off its debts. The crypto lending platform, Celsius Network, has reportedly hired new lawyers from Kirkland & Ellis LLP to help advise it on its restructuring options, according to a new report by the Wall Street Journal.
This news comes less than a month after Celsius had paused all crypto withdrawals for customers on its platform.
Celsius’ New Lawyers
Celsius, which had managed up to $11.8 billion in assets for around 1.7 million users as of May, halted withdrawals last month, citing “extreme market conditions” as the reason for its move.
Because of that, the company had hired Kirkland & Ellis LLP, the same law firm representing Voyager for its Chapter 11 bankruptcy, to help advise Celsius in its restructuring options.
Paying Back Debts
All of this is happening all the while Celsius debt obligations to decentralized finance lending and borrowing protocols Aave and Compound.
A former crypto money manager has also sued Celsius over allegations the firm misappropriated user funds to cover its shortfalls in its lending business. That manager is said to have cost Celsius $61.2 million in liquidations, according to data from Arkham Intelligence.
“We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets,” Celsius said on June 12. “We are working diligently to meet our obligations.”