Celsius Network Decongests its Liabilities, Lays Off 150 Workers

Embattled digital currency lending platform, Celsius Network has decongested its current liabilities by laying off as many as 150 workers globally according to a report from Calcalist. The move comes off as one of its most direct responses after suspending withdrawals last month citing extreme market conditions as the reason.

A lot has been happening behind the scenes since the company pended withdrawals, and it has asked its community to be patient and to give it time to be able to fix its woes and bounce back better.

“We are focused and working as quickly as we can to stabilize liquidity and operations, in order to be positioned to share more information with the community,” Celsius wrote on its blog on Friday. “We are operating with the entire community and all clients in mind as we work through these challenging times.”

Celsius Network Exploring the Best of Options

The move to cut 150 jobs is one of the options the firm believes will relieve it from some financial burden as it continues to work with its advisors including Citigroup and Akin Gump Strauss Hauer & Feld LLP. 

“We continue to take important steps to preserve and protect assets and explore options available to us. These options include pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues. These exhaustive explorations are complex and take time, but we want the community to know that our teams are working with experts from many different disciplines. Our relationship with the community and our clients has been a source of pride for all team members at Celsius, and we will continue to share information with our customers as and when it becomes appropriate,” the company added.

Celsius Network is one of the crypto-linked companies that has laid off a significant percentage of its workforce as Coinbase, Gemini, and Bybit amongst others have also trailed the path. The embattled crypto lending platform has been advised by its own lawyers to file for Chapter 11 bankruptcy but has been resisting doing as recommended. 

The firm believes it can find some other ways to solve its problems but excludes securing funding from deep-pocket players in the space like Nexo.