Celsius Enlists Advisers for Potential Bankruptcy, According to WSJ Report
Per the lending platform’s terms of use, clients are not guaranteed the return of their funds if Celsius declares bankruptcy
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key takeaways
- Celsius has hired restructuring consultants from advisory firm Alvarez & Marsal, according to the WSJ
- The last public communication from the Celsius team came via blog post on June 19, one week after it announced the halt
Celsius has hired restructuring consultants in preparation for a potential bankruptcy filing, the Wall Street Journal reported Friday, citing people familiar with the matter.
The crypto lending firm — which earlier this month halted withdrawals, swaps and transfers — has reportedly hired three consultants from advisory firm Alvarez & Marsal.
If the lending firm declares bankruptcy, there is no guarantee customers will be able to recover any funds held on the platform.
“In the event that Celsius becomes bankrupt, enters liquidation or is otherwise unable to repay its obligations, you may not be able to recover or regain ownership of such Digital Assets,” Celsius’s terms of use state.
The last public communication from the Celsius team came via blog post on June 19, one week after the halt.
“As has been a priority since our company’s inception, we maintain an open dialogue with regulators and officials,” the post read. “We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a resolution.”
The post did not address the potential for bankruptcy or the status of consumer funds.
The lender initially halted withdrawals, swaps and transfers in an attempt to “stabilize our liquidity and operations,” amid volatile market conditions, the company said. Celsius has also paused its weekly question and answer sessions with the community until further notice.
Celsius did not immediately respond to a request for comment.
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