Celsius Network Hires Advisers Ahead of Potential Bankruptcy Filing

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Celsius hired an unknown amount of restructuring consultants from the company Alvarez & Marsal to help them file for bankruptcy.

Celsius Network hires advisers ahead of potential bankruptcy: Report

Celsius is restructuring, and bankruptcy and buyout rumors are swirling around the company. Media outlets are reporting on the next steps Celsius will take.

Crypto lending platform Celsius has reportedly hired advisors from a management consulting firm before it may face bankruptcy.

Celsius hired restructuring consultants from the firm Alavarez & Marsal to advise them on possibly filing for bankruptcy. According to a Friday report from WSJ, the platform hired the consultants after a previous report from June 14, which stated that the company had hired lawyers in an effort to restructure the company amidst its financial issues.

Celsius is a cryptocurrency lending platform that allows users to borrow and lend cryptocurrencies. On June 12, 2019, Celsius announced that they were pausing all withdrawals, swaps, and transfers between accounts. This was done to prevent any further loss of funds due to an issue with their system. Since then, there has been very little activity on their social media channels.

Since its decision to freeze all funds in May, Celsius has been under fire. The company had previously said that it would continue to honor deposits made before the suspension. However, the platform has also been criticized for not providing users with an explanation for the freeze.

Celsius is an investment platform that allows users to borrow and lend cryptocurrencies. On June 20, 2019, co-founder and CEO Simon Dixon proposed a recovery strategy that could help the company survive the current bear market. He suggested that Celsius should follow the same path as Bitfinex in early 2016 when the exchange faced a similar situation. At the time, Bitfinex implemented a financial innovation solution that allowed them to survive the crisis. Dixon said that Celsius should implement a similar solution to avoid bankruptcy.