An embattled crypto lending platform is contemplating a financial restructuring plan in the wake of its native token dropping by 99% from its all-time high.
In a new report, the Wall Street Journal reveals Celsius Network (CEL) has engaged the services of the Akin Gump Strauss Hauer & Feld law firm to explore its options in the face of potential insolvency.
This past Sunday, Celsius Network announced that extreme volatility in the cryptocurrency markets made it necessary to temporarily stop withdrawals and transfers “in order to stabilize liquidity and operations while we take steps to preserve and protect assets.”
The WSJ report says the crypto lender’s potential options include cash infusions from investor financing as well as undergoing restructuring, a move that could entail changing company control or redesigning the overall corporate portfolio.
Earlier in the week, competing crypto lending platform Nexo (NEXO) publicly announced it had submitted an offer to buy up Celsius Network’s assets in order to help stave off “the repercussions for their retail investors and the crypto community” should the troubled lender become insolvent.
According to the WSJ report, as of mid-May Celsius held $11.8 billion in assets under management (AUM) and offered users annual percentage yields which in some cases exceeded 18.5%.
At time of writing, Celsius Network is down nearly 11% and trading for $0.57. The altcoin was valued above $0.80 a month ago before falling to as low as $0.15 on June 12th. Last summer it reached an all-time high of $8.05.
CEL briefly rallied to as high as $0.81 on Tuesday before witnessing choppy price action ever since.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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