{"id":49810,"date":"2022-07-11T18:34:30","date_gmt":"2022-07-11T16:34:30","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=49810"},"modified":"2022-07-11T18:34:30","modified_gmt":"2022-07-11T16:34:30","slug":"crypto-lender-celsius-hires-a-new-restructuring-legal-team","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/crypto-lender-celsius-hires-a-new-restructuring-legal-team\/","title":{"rendered":"Crypto Lender Celsius Hires a New Restructuring Legal Team"},"content":{"rendered":"

Things are not working out for the crypto lending firm, Celsius<\/strong>. However, it has<\/span>\u00a0hired<\/a><\/strong> a new legal team<\/strong> to move out of the current crisis. This new set of lawyers will help the firm to find a way out of the liquidity issues<\/strong>. Celsius has replaced previous counsel with Kirkland & Ellis LLP<\/strong>. The new hiring is set to assist the firm with issues of debt restructuring and bankruptcy filing<\/strong>.<\/span><\/p>\n

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Moreover, Kirkland & Ellis LLP has earned a huge name in the legal industry. It is the largest law firm<\/strong> in the world by revenue and falls at #7<\/strong> in the number of attorneys. Previously, Celsius had hired Akin Gump Strauss Hauer & Feld LLP<\/strong> to advise on somewhat similar issues. The last legal team was hired in mid-June<\/strong>, as the lending firm suspended<\/strong><\/a> transfers, swaps, and withdrawals on June 13<\/strong>.<\/span><\/p>\n

However, Celsius is still unable<\/strong> to reopen withdrawals, indicating that the previous legal team failed to offer a reliable restructuring procedure<\/strong>. Customers and users have been calling out Celsius, as their millions of dollars<\/strong> are stuck due to the suspension of services.<\/span><\/p>\n

Celsius Desperate for a Change<\/span><\/h2>\n

The crypto lending firm is making swift changes<\/strong> to recover from the crisis. On July 6, the company made changes to its board of directors<\/strong>. Three members were dismissed<\/strong> while two new members were hired<\/strong> on the board. However, the CEO of the firm, Alex Mashinsky<\/strong> is still heading the company. The pressure is continuously increasing on the CEO from regulators and ex-employees<\/strong>.<\/span><\/p>\n

\"celsius\"<\/p>\n

A few days back, an ex-employee<\/strong> also filed a lawsuit<\/a> against Celsius. The employee accused the firm of running a Ponzi scheme<\/strong>. He argued that the company took major risks and failed to hedge its yield farming activities<\/strong>. Moreover, he also stated that new depositors were paid from the funds of old depositors, causing a financial disruption<\/strong> for the company.<\/span><\/p>\n

In addition to this, regulators from Texas and Alabama<\/strong> have said that they will increase the scale of investigations against Celsius. These investigations will find out the authenticity of the data<\/strong> provided by the firm on loans and credit status<\/strong>.<\/span><\/p>\n

Almost every scenario is indicating towards a potential bankruptcy<\/strong> for the platform. However, Celsius is still reluctant<\/strong> toward that option. Recently, the firm paid off a $41.2 million debt to MakerDAO<\/strong>. Also, the firm reduced its debt on the Aave platform<\/strong>. Nonetheless, the financial vows<\/strong> are still there to be tackled, and the platform has high hopes<\/strong> from its new legal team.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Things are not working out for the crypto lending firm, Celsius. However, it has\u00a0hired a new legal team to move out of the current crisis. This new set of lawyers will help the firm to find a way out of the liquidity issues. Celsius has replaced previous counsel with Kirkland & Ellis LLP. The new … <\/p>\n

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