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According to rumors, Celsius Network is appointing new attorneys to handle its reorganization.
Finally, the Wall Street Journal reported on Sunday that Celsius Network, the cryptocurrency network that halted withdrawals amid falling cryptocurrency prices, is recruiting additional attorneys to provide restructuring assistance, including a potential bankruptcy alternative (July 10).
According to reports, the company will now seek legal counsel from Kirkland & Ellis LLP. Kirkland & Ellis LLP Will Provide Legal Assistance to Celsius Network.
Additional attorneys
Leading cryptocurrency loan platform Celsius Network has just engaged additional attorneys for restructuring purposes, weeks after stopping withdrawals due to “extreme market conditions.”
As was previously mentioned, the company last month suspended cryptocurrency withdrawals and deposits on its platform and then recruited Akin Gump Strauss Hauer & Feld LLP. WSJ reports that the company has now chosen Kirkland & Ellis LLP to manage its restructuring procedures. WSJ stated that Celsius hired Kirkland & Ellis LLP attorneys to provide advice on options, including declaring bankruptcy.
One of the most important aspects of corporate culture is restructuring, which is described as the process by which a company restructures or reorganizes its finances to pay back its creditors while facing financial pressure. In response to the harsh market conditions, Celsius Network stated on June 12 that it will stop accepting cryptocurrency withdrawal deposits and swaps on its platform.
Consumers would however continue to earn points during the “pause in keeping with our obligations to our customers,” the company said in a later statement. Following the introduction, Celsius Network was the subject of a flurry of debates, and numerous Twitter users apparently referred to it as a cryptocurrency Ponzi scheme.
The Celsius Network appears to be handling its present tragedy rather wisely, though. The company apparently has already paid Maker platform $120 million and is implementing new strategies to manage its present financial issue. On Saturday, Bloomberg also revealed that CoinFlex has filed a lawsuit to recoup $84 million in losses from only one client.
In order to correct the situation, the business may subsequently enter into a joint venture with another cryptocurrency exchange.
The exchange claimed that a counterparty owed them $47 million from a margin call, which was later identified as longstanding investor Roger Ver. The report said that once calculations were made, the total amount owing increased.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
