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Celsius hires new legal firm to help with restructuring

Celsius hired the law firm Kirkland & Ellis LLP to advise them on the restructuring. Law firm joined C one month after hiring the services of Kirkland & Ellis LLP.

Cryptocurrency lending company C is trying to overcome the cooling caused by the crypto winter and reposition itself as a trusted service in the market, once again gaining its credibility. . And to this end, it is turning to legal experts.

According to the Wall Street Journal, Celsius has hired law firm Kirkland & Ellis LLP to advise them on its restructuring and alleviating the financial burden that spiraled out of control following Terra’s demise, delisting. Lido’s stETH token, and the overall decline of the crypto market.

Restructuring is a court-approved plan in which a company reorganizes to pay creditors to the extent of its ability. Land parcel payments, board changes, mergers and acquisitions processes, rights transfers, and other solutions can be considered.

Understanding the crisis

Kirkland & Ellis LLP is replacing Gump Strauss Hauer & Feld LLP, a law firm hired by Celsius to advise them after they halted operations as a measure to avoid a liquidity crunch.

Celsius’s business model is based on lending cryptocurrencies and offering high interest rates to those who provide liquidity by pledging their funds. A good part of its business proposition is closely related to Lido. On this platform, users can participate in staking ETH without providing the 32ETH required to be a proper Ethereum validator.

On Lido, users stake some ETH and in return they receive a token called stETH. After Ethereum switches to Proof of Stake, each stETH can be redeemed 1:1 for ETH as each validator on the new Ethereum blockchain will receive ETH back. Currently, it is not possible to unlock the deposit amount on the ETH2.0 staking contract.

Celsius has a large amount of stETH in its inventory. However, after a wave of panic and delays in the ETH2.0 launch announcement, stETH lost its parity and started selling at a discount. The huge gap was due to lack of liquidity due to large buybacks that caused Celsius to halt withdrawals. This, in turn, increased the price of its own token.

@CelsiusNetwork is suspending all withdrawals, Swaps and transfers between accounts. Acting for the benefit of the community is our top priority. Our operations continue and we will continue to share information with the community. See more here:

Degrees Celsius (@Celsius) June 13, 2022.

Since then, it has been a roller coaster ride for the company – the end of a restructuring as it tries to meet its financial obligations.

Celsius refuses to die

Celsius has begun to recover, showing signs that it wants to survive the crypto winter and not suffer the deadly fate of other giants like Three Arrows Capital or Voyager Digital.

Despite the loss, Celsius has begun to reduce risks, pay off a lot of debt, and implement several strategies to increase the efficiency of its resource management.

As reported earlier this month, Celsius has laid off 150 employees in non-strategic areas. Other crypto businesses that have partially laid off their employees are Coinbase,, Blockfi, Huobi, and Gemini, just to cite a few examples.

In addition, Celsius has begun to pay off its debts, especially for Maker. It started by paying $120 million and making another series of payments until the debt was cleared, in return for almost 22k wBTC. These funds were then sent to FTX, sparking rumors of a possible sell-off to pay off the rest of the debt, triggering a devaluation.