Celsius Hires Restructuring Lawyers

Celsius Hires Restructuring Lawyers

According to the Wall Street Journal, Celsius, a crypto lender, has reportedly hired restructuring attorneys. The news comes as the company announced early Monday that it would be pausing withdrawals along with its swap and transfer products due to “extreme market conditions.”

It is unclear what Celsius’ next steps will be, but the company’s decision to hire restructuring attorneys suggests it is exploring all of its options. This could mean anything from a complete shutdown of operations to a more limited scaling back of services.

Whatever happens, it is clear that Celsius is feeling the effects of the current market conditions. The firm has been one of the few bright spots in the otherwise struggling crypto industry, but even it is not immune to the volatility of the markets.

Akin Gump Strauss Hauer & Feld LLP, a law firm based in Philadelphia, is working with Celsius. Celsius took the step of freezing account withdrawals on Monday amid the broader crypto market downturn.

The report said that at its peak, Celsius held over $10 billion in client assets. The decision to freeze account withdrawals was a dramatic one, and it is unclear what will happen next for the company.

It is unclear what the next steps will be for Celsius, but this situation highlights the risks associated with investing in cryptocurrencies. While there is potential for large returns, investors should be aware of the significant amount of risk involved before making any decisions.

Cryptocurrencies are a relatively new asset class, and as such, they are subject to a lot of volatility. In recent months, we have seen instances where crypto prices have surged and those where they have crashed. This makes them a risky investment for many people.

Investors should only invest in cryptocurrencies if they are willing to accept the possibility of losing all of their money. For some people, the high potential rewards outweigh the risks. However, others may prefer to steer clear altogether.

The market crash has been particularly hard on Celsius, whose value has dropped below $1 trillion for the first time since January 2021. As of May 17, Celsius had only $10 billion in assets, and its website showed that it had processed a total of $8.2 billion in loans. The company is now worth less than half of what it was worth just six months ago.

Celsius’ problems began when it decided to move away from the traditional banking system and use the cryptocurrency model instead. The problem with this model is that it is highly volatile and susceptible to crashes like the one we are currently seeing. While banks are FDIC insured and can weather these kinds of storms, Celsius does not have that same safety net. This has led to many customers losing faith in the company and withdrawing their money.

It remains to be seen whether or not Celsius will be able to recover from this blow. If they can manage to get back on track, they may be able to ride out the current market crash relatively unscathed. However, if things continue as they are going, there is a very real possibility that Celsius could go bankrupt before long. Only time will tell what will happen next for this embattled company.

Cryptocurrencies volatility

Cryptocurrencies have been exceptionally volatile since their inception. This volatility is due to a variety of factors, including the young age of the market, lack of regulation, and low liquidity. The result is that prices can swing wildly up and down in a relatively short period of time.

This volatility can be seen as both a risk and an opportunity. On the one hand, investors could see their investments lose a great deal of value in a short amount of time. On the other hand, cryptocurrencies also offer the potential for large returns if timed correctly.

The key for investors is to understand the underlying factors driving price movements in order to make informed investment decisions. Those who are able to navigate the volatility successfully could reap great rewards.

Barinem Pene Verified

Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.

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