Celsius replaces its lawyers and repays a debt of 20 million dollars to Aave
Although caught in the web of the crypto bear market, Celsius had a negative impact on the situation. The crypto lending platform is struggling to untangle itself from the effect of insolvency. It suspended the withdrawal of customers from the platform to weather the storm. Additionally, he had previously hired attorneys from Akin Gump Strauss Hauer & Feld LLP.
However, Celsius seems to take different measures to save his sinking boat. The firm has would have changed its legal team by hiring new lawyers from Kirkland & Ellis LLP. He was replaced by the same law firm that handled Voyager Digital’s bankruptcy filing last week.
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The Wall Street Journal reported the new Celsius action on Sunday. Celsius plans to restructure its move with the new legal team through their professional advice. Also, the loan company would get a bankruptcy filing from its new legal advisers.
Kirkland & Ellis LLP has been a strong international law firm since its inception in 1909. Its operation covers several areas such as mergers and acquisitions, private equity and other transactions in the corporate world.
The law firm handled Voyager Digital’s bankruptcy filing as legal counsel. Kirkland & Ellis LLP filed the suit on July 5 for Voyager Digital with the New York District Court. The lawsuit came after the lending platform halted activities such as withdrawals, deposits and transactions due to insolvency.
Celsius Debt Repayment Moves and Their Implications
In a new development, Celsius has reportedly taken positive steps to reduce its debts to DeFi lending protocols. The firm has refunded Aave with about 20 million in USD Coin (USDC). The refund was reported on Sunday via a screenshot from Peckshield, a blockchain company. It was concluded as a transfer to Aave Protocol V2 from the Celsius wallet.
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As the lending platform reduces its debt, it could benefit its depositors by recovering their funds. Joni Pirovich, a crypto lawyer, said last week that Celsius’ loan repayment measures were very beneficial.
This would help the company release most of its capital or collateral, which would meet the withdrawal needs of customers. Since June 13, the firm has suspended all withdrawals on its platform to avoid losing funds in the event of bankruptcy.
Recall that Celsius has collected collateral worth more than $500 million in Wrapped Bitcoin (wBTC). This happened on Thursday last week after paying off its debt to MakerDAO of approximately $41.2 million. With this latest repayment to Aave, Celsius is getting closer to clearing all of its debts.
According zapper, a DeFi tracking company, Celsius now has a total of $215 million in debt. The breakdown reveals that it still owes Aave approximately $82,500 in REN and $130 million in USDC. In addition, he owes the Compound Protocol approximately $85.2 million in DAI.
Featured image from Pexels, chart from TradingView.com