Crypto lender Celsius Network LLC has hired restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld LLP to advise on possible solutions for its mounting financial problems, according to people familiar with the matter.
Last week Celsius told users that it was pausing all withdrawals, swaps and transfers between accounts because of extreme market volatility.
Celsius is first looking for possible financing options from investors but is also exploring other strategic alternatives, including financial restructuring, one of the people familiar with the matter said.
Celsius lends out customer deposits to other users to earn a return. According to its website, the company managed $11.8 billion in assets as of May 17. It offers users annual percentage yields of up to 18.63% on cryptocurrency deposits. The company said it has 1.7 million users.
A spokeswoman for Akin Gump had no immediate comment. Celsius executives didn’t immediately respond to requests for comment.
Lawmakers have recently been turning their attention to what could happen if a cryptocurrency platform fails. Last week, a bipartisan duo of senators proposed a law that would protect investors if a crypto exchange files for bankruptcy by ensuring that their digital assets would be held separate.