CryptoCurrency News - June 16, 2022

Alex Mashinsky, founder and CEO of popular DeFi lending platform Celsius, has tweeted for the first time since the platform suspended all withdrawals and other services on June 12.

Celsius CEO Breaks Silence

In a Twitter post yesterday, Mashinsky noted that Celsius is focused on users’ concerns and working around the clock to resolve the issues with the company. He also asked for customers’ patience and support as the firm goes through a difficult time.

Celsius in Predicament

Celsius blocked all withdrawals, swaps, and transfers between accounts on Sunday due to “extreme market conditions.” The company said the interest of its customers was its top priority, and the decision to suspend the services was to help the firm honor its withdrawal obligations.

The following day, reports emerged that Celsius transferred about $320 million worth of assets to crypto exchange FTX hours before the company suspended withdrawals.

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Although Celsius is yet to comment on the transfers, the firm said its objective is to stabilize, liquidate, and restore the halted services as soon as possible. Nevertheless, the suspension is seemingly indefinite as users are still locked out of their funds after more than four days.

Celsius Hires Restructuring Lawyers

Celsius is taking desperate measures to solve its predicament. Yesterday, the company hired restructuring lawyers from Akin Gump Strauss Hauer & Feld LLP for counsel on its issues. The crypto lender is also looking for financial help from its investors.

Meanwhile, Nexo, a rival crypto lending platform, has already offered to buy all of Celsius’ qualifying assets. Celsius has until June 20 to respond to the offer.

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