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Celsius hires lawyers to solve financial problems

Celsius hires lawyers to solve financial problems

The Celsius Network cryptocurrency platform has hired consultants from the legal firm Akin Gump Strauss Hauer & Feld LLP to assist in finding possible solutions to a burgeoning number of financial problems. 

According to The Wall Street Journal, Celsius attracted cryptocurrency deposits, offering returns of up to 18.63% per annum. Once a client of the platform, it was also possible to borrow cryptocurrency. As of May 17, the company managed assets valued at $11.8 billion. As Celsius reports, it has 1.7 million users.

Last week, the company notified users that it temporarily suspended withdrawals and transactions between accounts due to extreme market volatility.

As a solution to the problems, Celsius is now primarily evaluating possible options for attracting financing from outside investors. The company is also considering other options, including restructuring of deposits.

Regulators and lawmakers have been focusing on the consequences that could result from the collapse of cryptocurrency platforms, the WSJ reminds. Last week, two U.S. senators proposed an initiative to protect investors in the event crypto exchanges go bankrupt.

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