Struggling crypto lender Celsius Network has hired a hard-hitting law firm behind the restructuring of Sears, Washington Mutual and a number of other banks to advise on possible solutions to its financial difficulties.
Akin Gump Strauss Hauer & Feld LLP is helping Celsius seek out possible funding options from investors, according to a Tuesday Wall Street Journal report. Celsius is also exploring other strategic alternatives, including financial restructuring, one of Akin Gump’s main focus areas. The announcement could already have a positive impact on the market, with the platform’s CEL token falling to a low of around $0.17 on June 13, according to CoinMarketCap.com, before regaining its pre-collapse value. of $0.66 today.
The news follows London-based Celsius announcing that it was suspending all withdrawals on its platform citing “extreme market conditions”. Last month, Celsius said it had loaned more than $8 billion to clients and had about $12 billion in assets under management.
Neither Celsius nor Akin Gump responded to Forbes’ requests for comment at press time.
Since its inception 85 years ago, Akin Gump has grown into one of the largest law firms in the world, with over 900 attorneys in 20 offices around the world. The company is currently headquartered in Washington DC and has one of the nation’s largest lobbying practices by revenue. Last year, Akin Gump posted total revenue of $1.22 billion, according to Law.com. In 2020, the company’s restructuring unit was named ‘Restructuring Team of the Year’ by UK magazine Legal Business.
According to Akin Gump’s website, the company has been involved in some of the most high-profile restructurings, including those of former retailer Sears when it went bankrupt in 2018, and Washington Mutual, a credit union holding company. savings and the former owner of WaMu Bank, which was the largest savings and loan association in the United States until its collapse in 2008. In addition, Akin Gump has helped three former Icelandic banks Kaupthing, Landsbanki and Glitnir, which also collapsed in the financial crash of 2008.
After the $60 billion collapse of the stablecoin TerraUSD and its sister token Luna, the cryptocurrency market saw a series of sell-offs. The fall was exacerbated by deteriorating macroeconomic conditions and interest rate hikes by the Federal Reserve. On Monday, Binance, the world’s largest cryptocurrency exchange by trading volume, also temporarily halted trading in a bid to stabilize liquidity.