News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Fintech

Celsius’ crypto faithful have a plan to avoid bankruptcy

Sources said a potential solution would be for Celsius to reopen withdrawals with a cap on how much customers can take out per month

Bosses including chief executive Alex Mashinsky have been pushed by lawyers towards standard bankruptcy proceedings, while others want to ask Celsius’ customers whether they would like it to reopen withdrawals
Bosses including chief executive Alex Mashinsky have been pushed by lawyers towards standard bankruptcy proceedings, while others want to ask Celsius’ customers whether they would like it to reopen withdrawals

An internal storm is brewing at crypto lender Celsius over its potential plans to file for bankruptcy, with some involved in the talks instead pushing to tap its customer base for support.

The strain at the beleaguered firm — which hired restructuring consultants from advisory firm Alvarez & Marsal to help with a possible bankruptcy filing, The Wall Street Journal reported on 24 June — comes as Celsius contends with the recent crash in digital asset values. Lawyers at Akin Gump Strauss Hauer & Feld are also reportedly advising bosses.

WSJ Logo