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dodged crypto lender Celsius Network is exploring possible bankruptcy filings as it became the latest victim of a sector failure.

According to the Wall Street Journal, the New Jersey-based company has sought restructuring advice from law firm Kirkland & Ellis as it considers its survival options.

This comes after Celsius suspended customer transfers and withdrawals on its platform, citing “extreme market conditions”.

The company said in a blog post: “We are taking these necessary steps for the benefit of our entire community to stabilize liquidity and operations while taking steps to preserve and protect assets.”

“There is a lot of work ahead, we are looking at different options, this process will take time and there may be delays.”

Last week, Celsius reportedly faced a lawsuit from the company’s former investment manager, who alleged that the firm failed to adequately hedge risks and manipulated the price of its own token.

To date, Celsius has not publicly responded to the allegations made in the lawsuit.

Price bitcoin fell a further 4% in the past 24 hours to £17,017 as its market cap fell below $400bn (£335bn), according to CoinMarketCap. Bitcoin is down more than 51% since the start of 2022.

New York-based cryptocurrency broker Voyager Digital filed for bankruptcy last week after hedge fund Three Arrows Capital defaulted on a $675 million loan to the company and crypto mining business Compass Mining laid off 15% of its workforce and cut pay the work of managers.

The Celsius network has 1.7 million customers with $12 billion in assets under management as of May.

https://www.standard.co.uk/business/celsius-network-bankcruptcy-crypto-crash-b1011487.html

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