Celsius, one of the biggest DeFi lending firms that dominated the market in recent years, tumbled down due to liquidity issues, and it has now hired advisors to prepare it for a potential bankruptcy, as per the report from the Wall Street Journal. 

New advisors added to the Celsius team

According to the report from Celsius, the firm has brought in consultants from the management advisory firm Alvarez & Marsal in order to prepare the firm for the worst possible times. Furthermore, the firm has hired restructuring consultants to provide advice on potential bankruptcy filing as well. 

The WSJ has reached out to Alvarez & Marsal and Celsius, but neither has responded to the questions. Interestingly, the WSJ had previously reported on June 14 that the firm had hired restructuring attorneys from another legal firm called Akin Gump Strauss Hauer & Feld LLP. 

As per the report, the consultants will advise Celsius on “possible solutions for its mounting financial problems.” It remains unclear if the DeFi lending protocol will file for bankruptcy and if the customers of the platform will be able to get a refund for their investments. 

Situation remains unclear?

The situation remains unclear regarding the Celsius liquidity issues and interestingly, as noted in our previous report, the DeFi firm is said to have sought advice from Citigroup. It is rumored that the investment bank also advises the firm on proposals from competitors such as Nexo, which seeks to acquire the firm.

Additionally, rumors suggested that Tether was also a part of the wipeout caused by the DeFi firm’s liquidity issues. Tether said that it has nothing to do with the situation and that its reserves “hold strong“