07-11-2022 icon

Celsius Network hires new restructuring professionals, settles $20M dues to Aave

By Lucy Adegbe

Cryptocurrency lending protocol Celsius Network has allegedly sought the aid of an attorney from Kirkland & Ellis LLP to guide it through its reorganization choices. The company was enlisted to have helped Voyager Digitals with its liquidity challenges in the previous week. 

A Wall Street Journal July 10th report revealed that the lending company has employed the legal body to guide it through available restructuring options alongside a liquidity filing to replace the formerly employed company, Akin Gump Strauss Hauer & Feld LLP.

There are speculations that the firm might succeed the path that Voyager had taken in filing liquidity proceedings just after its halt on all transactions. However, Celsius has proceeded to reduce its dues to decentralized loaning platform Aave by paying off 20 million worth of USDC.

In the early hours of July 11th, PeckShieldAlert dropped a tweet backed by a screenshot showing proof of the repayment transaction from Celsius wallet to Aave.

The repayment moves have been seen as an optimistic light by users of the platform who have been suspended from accessing their crypto funds since June 13. 

Attorney Joni Pirovich had explained in the previous week that Celsius’s ability to settle its loan debt would help to pile up enough equity to settle its customers when the suspension on withdrawal is lifted.