According to sources, Celsius is heading towards bankruptcy and looking for help. According to unnamed sources, Celsius, a cryptocurrency lending company, may be near bankruptcy.
They are hiring additional advisers in preparation for an upcoming filing, according today’s Wall Street Journal report.
Alvarez & Marsal has been hired by Celsius to assist the crypto lender in restructuring, according to the Journal.
The company froze all accounts of its clients 12 days ago. This was in response to an apparent liquidity crisis caused by the collapse of the crypto market. Celsius claimed that the withdrawals were being suspended due to “extreme market conditions”, but it has not offered any solutions. Last week, the Wall Street Journal reported that the crypto lender sought legal assistance from Akin Gump Strauss Hauer & Feld LLP to complete its financial restructuring.
Celsius CEO Alex Mashinsky had only one day before dismissing rumors about the company’s insolvency. He used “FUD” to refer to “fear, uncertainty and doubt”. This term is often used in crypto circles to denote deliberate misinformation.
Mashinsky then went radio silent, but he resurfaced on Twitter three days later to finally acknowledge the situation. He said: “This is an difficult moment; your patience & support mean the world”
