Celsius reconstructing its legal team amid hurdles

The crypto lending platform Celsius continuously decreasing the debt load and changing its legal team.

Celcius is a crypto lending platform. This platform provides easy lending services on behalf of the collateral funds holding of customers. In the middle of the last month, Celsius faced negative impact on its liquidity because of the extreme volatility in the crypto market. The whole situation forced Celsius to declare its platform bankrupt but still Celcius trying its best to get out of this situation. 

According to the report of Wall Street Journal, Celsius is hiring lawyers from Kirkland & Ellis LLP. Celsius seeks to get advice from these lawyers in its restructuring options. 

Kirkland & Ellis LLP is an international law company, which was founded in 1909. This company serves clients in private equity, M&A, and other corporate transactions. 

Today, Crypto analytic platform peckshield reported that Celsius repaid $20 million worth of USDC to Aave. 

At this present situation, Celsius holds approximately $130 million debt in USDC and $82,500 in Ren (REN) to Aave, along with $85.2 million in Dai (DAI) to the Compound protocol, with a total debt of $215 million. 

Last week on 7 July, this crypto lending platform repaid $41.2 million to Maker Protocol, and with that repayment, Celsius successfully freed up more than $500 million in Wrapped Bitcoin (wBTC) collateral.

Repayment of debt to the corresponding protocols continuously in these situations is showing that Celsius users are now getting confidence. On 13 June, Celsius halted withdrawal and trade from the platform. Since that date, users have been eagerly waiting to see the start of services again. In this situation, no one can easily predict whether Celsius will be able to sustain its business or not but surely bad business model or bad management based businesses will get wiped out from this industry.

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