Within Days after blasting 25 percent of its workforce, Celsius Network is preparing to secure itself from the market slump. The US-based crypto lending platform has employed a legal team from the Kirkland & Ellis LLP law firm to help them in the procedure of its corporate restructuring. The recently onboarded legal team is also being assigned to easing the financial load on Celsius after the collision of Terra that ended up spiraling into the present global crypto dip.
Kirkland & Ellis LLP is practically replacing Celsius’ previously partnered law firm known as the Gump Strauss Hauer & Fend LLP.
Celsius has lately been prosecuted by a former investment manager, who has declared that the company utilized customer deposits to manipulate the price of its crypto token and failed to properly hedge the threat, resulting in it freezing the customer assets.
The complaint said, ” Celsius ran a Ponzi scheme to benefit itself through “gross mismanagement of customer deposits,” and defrauded the plaintiff KeyFi Inc, run by the former manager Jason Stone, into providing services worth millions of dollars and refusing to pay for them.”
On June 13th, Celsius Network halted the withdrawals, swaps, and transfers citing liquidity concerns.
The platform’s operational model proposed crypto lending against elevated interest rates to those users who provided liquidity and committed their funds.
