On the verge of bankruptcy appears to be Celsius – the company that provides loans and interest rates on cryptocurrencies, as it hired yet more restructuring advisors and began preparing for a filing, according to reports Wall Street Journal.
The developments of the last few days probably confirm the estimates that Celsius is heading towards the close. The company has hired restructuring consultants from Alvarez &? Marsal to help it prepare for the possible filing.
Celsius 12 days ago… freeze and still no progress
Recall that just 12 days ago Celsius suddenly “froze” the accounts of its customers, suspending all withdrawals, exchanges and transfers on its platform after a liquidity crisis caused by the fall of the cryptocurrency market.
In its statement that day, Celsius referred to “extreme market conditions” that led it to… temporarily – as it said – suspend withdrawals, but it has since failed to provide customers with an update on any progress.
The Wall Street Journal reported last week that Celsius had sought help from the law firm, Akin Gump Strauss Strauss Hauer & Feld LLP, for its financial restructuring.
Dismissing the rumors
Before freezing customers’ accounts, Celsius CEO Alex Mashinsky had just a day earlier dismissed rumors of the company’s insolvency and called it deliberate misinformation.
However, Mashinsky was silenced from his public appearances following the Celsius “freeze” and reappeared on Twitter three days later to acknowledge – at last – the situation: