Twitter Facebook LinkedIn Flipboard 0 Celsius Network, one of the top decentralized platforms in crypto, is looking at a possible bankruptcy filing. Celsius has faced liquidity issues following the recent crypto market downturn and has already halted withdrawals, swaps, and transfers from the platform. Celsius hires advisers for a potential bankruptcy filing CEL is a DeFi lending platform, and a report from the Wall Street Journal (WSJ) said that the company was hiring advisers to aid the company in the procedure for filing for bankruptcy. The Celsius Network has hired several consultancy firms to help the DeFi platform navigate how it will address bankruptcy issues. The consultants hired are from the Alvarez & Marsal firm and will advise the company on any matters concerning filing for bankruptcy. Buy Celsius on Bybit Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk. The hiring of this firm comes after the network hired restructuring lawyers amid its deepening financial crisis. Celsius was among the first networks to feel the bluntness of the ongoing recession in the crypto market. However, over the past few weeks, other DeFi platforms, including Babel Finance and Finblox, have similarly halted withdrawal services. Withdrawals on the CEL have been halted since June 12. At the time, the company said that “extreme market conditions” was the reason behind halting these services. The CEO of the platform, Alex Mashinsky, and other executives at the network have remained rather silent on Twitter regarding the matter. On June 19, the network announced it would be halting discussions on Twitter Spaces and AMAs to address operational issues. Regulators turn attention toward Celsius The action of the Celsius Network to halt withdrawals has attracted regulatory attention. Several states in the US have said that they are looking into the issue with the accounts that have been frozen by the network. The Texas State securities Board director of the enforcement division, Joseph Rotunda, said that regulatory agencies in Alabama, New Jersey, Kentucky, Washington, and Texas were looking into the issue with CEL. Some top team members at Celsius have also discussed a recovery plan. The lead investor at Celsius, Simon Dixon, had proposed that the network implement the same recovery as Bitfinex did after the 2016 hack. Dixon noted that by doing this, the network would have a “financial innovation” solution. The collapse of the Celsius network is bound to attract regulatory attention due to the firm’s size. In November 2021, Celsius reached a valuation of $3.5 billion after a Series B funding round. However, the valuation has since dropped following the ongoing bearish trend. Related News Celsius Asks for More Time, CEL Coin Pumps Over $1 – Short Squeeze? BitBoy Crypto Plans Celsius Lawsuit, Remembers He Promoted Them Crypto Signals - Learn to Trade Our Rating Free Telegram Community & VIP Channel 3 - 5 Crypto Signals Daily VIP Access when Opening an Exchange Account Market News & Technical Analysis - cryptosignals.org Learn More Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk. Twitter Tweet Facebook Share Email This article was written for Business 2 Community by Ali Raza.Learn how to publish your content on B2C Author: Ali Raza Follow @ali_r1272 Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, InsideBitcoins, BeinCrypto, and more. … View full profile ›More by this author:Hackers Using Google Sites and Microsoft Azure to Launch Crypto Phishing CampaignsFounder and CEO of Blockchain.com Criticizes Capital Influx into Multiple Layer One BlockchainsMark Cuban faces lawsuit for promoting Voyager