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Well-renowned crypto company Celsius has hired lawyers from Kirkland and Ellis LLP to counsel the executives on its restructuring options, the same was suggested to Voyager Digital when the company filed for its bankruptcy. Kirkland and Ellis LLP claim to be an international law firm that serves clients in private equity, M&A, and other corporate transactions. Apparently, Celsius has hired lawyers to attain advice on options like bankruptcy filings. The law firm is also reputed for being the general bankruptcy counsel for Voyager Digital in its bankruptcy proceedings.
The ongoing crypto crisis is making several massive crypto companies file for bankruptcy. Celsius and Voyager, both have paused trading, withdrawals, and deposits of digital assets due to liquidity issues, after which they filed for bankruptcy. Currently, the Celsius platform is pestered by the 20 million USDC that it owes to Aave. Based on reports revealed by Zapper, a DeFi tracking tool, Celsius owes around US$215 million in debt to Aave.
The current condition of the crypto exchanges is worrying investors who believe they have to endure more financial threats and losses. Besides bankruptcy, the Celsius platform is also being sued by a former investment manager, who has accused the company to use customer deposits to rig the platform with its own token and eventually failing to act as a proper hedge risk, causing it to freeze customer assets. The complaint also included that the crypto platform ran a Ponzi scheme to benefit through the mismanagement of customer deposits.
Accusations like these will only make things more difficult for the platform. Not only does Celcius needs to regain back its market dominance, but it also needs to regain back the trust of its users and the crypto community. Initially, the company started facing the wrath of the crypto community right after the market slowdown. Presently, we can only hope that the crypto platform will soon repay all its debts and also regain back the lost hopes of the investors.
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