According to several reports, the crypto lending company, which is currently struggling to survive this crypto bear market, Celsius Network, has hired advisors from the management consulting firm Alvarez & Marsal to tackle the company’s reported bankruptcy.
As per a recent report by the Wall Street Journal, the company has onboarded an unknown number of restructuring consultants from Alvarez & Marsal to help Celsius possibly file for bankruptcy. The report mentioned the platform’s move from June 14, where it hired lawyers to restructure the company amid its financial crisis.
Steady lads https://t.co/5YAdmq5kt8
— Ben McKenzie (@ben_mckenzie) June 24, 2022
Does the Celsius network have a recovery plan?
Despite several such reports floating, Celsius Network recently said that it is still looking at ways to resolve its withdrawal issues. Notably, the company has been a hot topic of discussion in the past few weeks after it decided to stop “all withdrawals, swaps, and transfers between accounts,” citing extreme market volatility.
Since making that declaration, Celsius’ CEO Alex Mashinsky and other executives have mostly been off social media. On June 19, the platform announced it would stop hosting “Twitter Spaces and AMAs” in order to concentrate on fixing operational problems.
Following the platform’s decision to halt withdrawals, state authorities are now running behind it. Regulatory authorities in Alabama, Kentucky, New Jersey, Texas, and Washington were “looking at the issue involving the frozen accounts” at Celsius, according to Joseph Rotunda, director of the enforcement division for the Texas State Securities Board.
Simon Dixon, a Celsius investor and co-founder of BnkToTheFuture, put up a recovery strategy on June 20 that called for the cryptocurrency lending site to adopt a “financial innovation” strategy similar to what Bitfinex did in 2016. Following a $700 million Series B investment deal in November 2021, Celsius had a $3.5 valuation, though this number may have decreased given the recent market collapse.