Celsius, the US-headquartered crypto lending platform, has reportedly hired the Kirkland & Ellis LLP law firm to help in its restructuring process. Celsius has been finding itself in troubled waters lately due to the ongoing crypto market meltdown. In June, it announced that it paused all crypto withdrawals citing “extreme market conditions.” Earlier this month, it announced that it has laid off 150 employees — nearly a quarter of its workforce. Now, a Wall Street Journal report suggests that Celsius has hired lawyers from Kirkland & Ellis to advise on its restructuring options.
The crypto lending platform has also reportedly hired lawyers to advise on a bankruptcy filing.
Kirkland & Ellis is reported to be the same firm that has been tapped by Voyager Digital as general counsel for its own bankruptcy proceedings. The filing came a few weeks after Voyager issued a default notice to Three Arrows Capital, popularly known as 3AC, which is a Singapore-headquartered cryptocurrency exchange. The loan default, along with the current volatility of the overall crypto market has been cited as the reason behind the bankruptcy by Voyager CEO Stephen Ehrlich.
Celsius promised exorbitantly high interest rates of up to 18 percent to customers on their crypto deposits. As per a report by Bloomberg, founder Alex Mashinsky said Celsius was able to earn high rates itself in order to quell skepticism around the interest rates.
Last week, Celsius was sued by a former…
