Sources tell the Wall Street Journal that Celsius has recruited a legal team to help it restructure its firm after running into financial difficulties.
Akin Gump Strauss Hauer & Feld LLP has been retained by the company to provide legal guidance on how to deal with its escalating financial difficulties, according to reports. First and foremost, a source familiar with the situation said, the firm is looking for potential investors. Celsius is considering other options, such as financial restructuring if this strategy fails.
This is the latest development after the platform’s decision on June 12 to prohibit withdrawals, swaps, and transfers on its platform due to market circumstances. As a result of the action, most cryptocurrencies have fallen to their lowest levels since January 2021.
On June 13, CEL, the Celsius Network’s native token, traded at a low of $0.0935. For the rest of the day, it recovered some of its losses and traded over $0.30.
CEL’s price soared by 500% on June 14th, reaching a high of $2.56 on FTX. In addition to BitFinex, Gate.io, and OKEX, a number of other exchanges suffered modest pumping.
Tokens rapidly fell below $1 as these gains were short-lived. As of this writing, CEL is trading at $0.49, up 52.14 percent from the previous day’s closing price of $0.321. The token’s price has fallen by 94% from its all-time high (ATH) of $8.03 on June 4, 2021.
Nexo came in after Celsius Network’s bankruptcy concern and offered to provide a hand. According to the Nexo team, it was only in the best interest of Celsius users and the wider crypto community that it offered to buy Celsius’ assets.
Nexo said in its Letter of Intent that it was interested in purchasing Celsius Network’s qualifying assets. These include Celsius’ customer database, collateralized loan receivables, and Celsius’ brand assets.
In spite of Nexo’s persistent pestering, the company has yet to accept his offer. In the meanwhile, the business keeps telling clients that it has their best interests at heart.