By Nathan Ferguson
Reports point out that some advisors (working at a management consulting company) have been onboarded by Celsius Network (a prominent venue for lending cryptocurrencies) ahead of the time when bankruptcy may be faced by the company.
As per a report by the Wall Street Journal, restructuring consultants (in anonymous number) operating under the company named Alvarez & Marsal have been appointed by Celsius to provide advice to the venue regarding a potential submission for bankruptcy. In the respective report, it was mentioned that the lawyers had been hired by Celsius while endeavoring to reorganize the firm during the financial problems thereof.
The network has been acting as a frontrunner in the debates done in the media regarding the extreme volatility prevailing across the market of cryptocurrencies nowadays when the platform has decided to halt the entirety of the swaps, withdrawals, and transfers among accounts on 12th June.
Alex Mashinsky – the CEO of the venue – as well as the rest of the prominent officials of Celsius Network have been mostly quiet on social media after the respective declaration as the platform disclosed on 19th June that it would put a stop to the debates on AMAs and Twitter Spaces to be more focused on tackling the problems taking place in its activities. While keeping all this in view, state-based authorities have started a keen observation of Celsius Network particularly after it decided to suspend the withdrawals.
On 16th June, joseph Rotunda – the enforcement division’s director at the Texas State Securities Board – was of the view that the regulatory authorities of Alabama, Washington, Texas, New Jersey, and Kentucky were all paying considerable attention to the problems of Celsius dealing with the frozen accounts.
On 20th June, Simon Dixon (the person who co-founded BnkToTheFuture and is investing in Celsius) suggested a recovery strategy by persuading the venue to undertake an approach identical to that taken on the behalf of Bitfinex 6 years ago, with the utilization of a solution for financial innovation.
In the previous year, the platform remained successful in achieving a cumulative valuation of up to $3.5 after a Series B funding round consisting of nearly $750M. It is reported that the very figure may have witnessed a collapse as the whole crypto market is going through an extremely hard time.
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