The newspaper understands that Celsius Network is initially turning to potential investors for financing options — but other options on the table could include a financial restructuring.
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Celsius Network has reportedly hired restructuring lawyers as it battles to find a way out of growing financial problems.
The crypto lender sent shockwaves throughout the industry on Monday when it announced it was pausing all withdrawals, transfers and swaps — meaning users were unable to access their digital assets.
According to The Wall Street Journal, the embattled company has now enlisted the law firm Akin Gump Strauss Hauer & Feld.
The newspaper understands that Celsius Network is initially turning to potential investors for financing options — but other options on the table could include a financial restructuring.
Celsius Sparks Warning from SEC
On Tuesday, the chairman of the U.S. Securities and Exchange Commission warned the public to be wary of crypto lending platforms promising interest rates that go above and beyond what regulated institutions offer.
Speaking at the Robert F. Kennedy Human Rights Compass Investor Conference, he said:
"Sometimes, if it seems too good to be true, it just may well be too good to be true in terms of those websites that talk about 7% or 17% returns."
Celsius hasn't publicly commented on the claims that it has hired restructuring lawyers — and has faced criticism for failing to offer regular updates to affected users.
On Tuesday, it insisted that it was "all hands on deck" as the team worked "around the clock", adding:
"Celsius Network is working as quickly as possible and will share information as and when it becomes appropriate. Acting in the interest of our community remains our top priority."
A number of Twitter users who replied to the statement said they no longer have trust in the company — meaning that, if Celsius does allow withdrawals to resume, the writing may be on the wall… with customers draining their accounts as quickly as possible.
CEL, the platform's native token, has been trading especially erratically over the past 24 hours.
On Tuesday, it surged from $0.33 to $1.17 in under 90 minutes — accelerating by 254%.
Just half an hour after this peak was reached, CEL was back down to $0.55… with some traders suggesting the unusual trading activity may be linked to a short squeeze.
