Although Celsius’s communication has been elusive for a while, we learn that the company is hiring a new law firm to fine-tune possible possibilities regarding its future. At the same time, the company, still in difficulty, has just reimbursed 20 million dollars to the Aave platform.
Celsius restructures around a new cabinet
The cryptocurrency lending platform Celsiusin a fragile position for more than a month now, will restructure around a new law firm specialized in business consulting, according to information from the Wall Street Journal. The possibilities mentioned have in particular made mention of the bankruptcy filing.
The firm therefore abandons the law firm Akin Gump Strauss Hauer & Feld LLPrecruited in mid-June, for the benefit of Kirkland & Elis LLP, an international firm specializing in mergers and acquisitions, private equity and sovereign wealth funds. It should be noted that this is also the firm responsible for supporting Voyager Digital in the context of its bankruptcy proceedingsthe latter in front between 1 and 10 billion dollars to its creditors.
The latest official statement from Celsius June 30 datethrough which the company assured that it continued to take important measures to “ preserve and protect assets “, referring in particular to “ strategic transactions “, thus echoing the takeover proposal – which remained unanswered – issued by Nexo to it last month.
At the end of June, Celsius’ previous law firm had notably argued in favor of a recourse to chapter 11 of the United States bankruptcy law. This procedure allows companies to continue their usual operations while protecting themselves when they are unable to pay their creditors.
👉 Find Dr. Chaîne’s analysis of the errors that led Celsius to its downfall
Join Experts and a Premium Community
Invest in your crypto knowledge for the next bullrun
Debts repaid gradually
Indebted at least to the tune of several hundred million dollars, Celsius has reimbursed $20 million in the form of USDC to Aave on the night of July 10-11, according to data from Etherscan.
Also, according to zapthe different wallets identified as belonging to Celsius total a value of more than $1.4 billionwith remaining debt split between Aave (over $130 million) and Compound ($85 million).
Note that this is only part of the Celsius funds, and that most of the remaining ones are hosted on exchanges.
Celsius had reimbursed $41.2 million in DAI to Maker Thursday, July 7, freeing up access to almost 22,000 wBTC, or $440 million at that time. Its total debt is therefore gradually reducing, but nothing is certain, in particular because the trust of its investors will probably be the most complicated thing to regain.
Let us add to this that a former Celsius contractor has recently lodged a complaint against the platform, accusing it of having built a Ponzi scheme by artificially inflating the promised rates of return, and this in order to make up for his own mistakes.
In his recent report, Arkham Intelligencea firm specializing in on-chain analysis, said Celsius’ business model is based on pocketing thegap between promised returns and interest paid platform users. The report concludes as follows:
“Celsius users’ account dashboards eventually informed them that they were accumulating crypto rewards that didn’t actually exist. »
👉 Related: Justin Sun Says He’s Ready to Invest $5 Billion to Save Struggling Businesses
Sources: Wall Street Journal, Medium, Zapper
Receive a summary of crypto news every Monday by email 👌