Celsius has reportedly changed legal teams and paid off $20 million in debts to the Aave protocol.

The platform hired Kirkland & Ellis LLP to advise on restructuring options. The same firm that helped Voyager Digital file for bankruptcy last week. Cooley LLP is a leading law firm with experience in the cryptocurrency space, which also has represented major players in the industry, such as Coinbase, Circle, and Ripple. 

In addition to changing its legal team, the company also paid off its remaining $41.2 million debt to Maker protocol on July 7, freeing up more than $500 million in Wrapped Bitcoin (wBTC) collateral. With these two debts repaid, they now owe approximately $130 million in USDC and $82,500 in Ren (REN) to Aave, along with $85.2 million in Dai (DAI) to the Compound protocol.

Celsius has been one of the most active players in the DeFi space, with millions of dollars worth of crypto assets locked into various protocols. The company has been struggling financially since last year and has come under fire for its aggressive lending practices, which have led to its accruing large amounts of debt.

In June, Mashinsky revealed that the U.S. Securities and Exchange Commission (SEC) had launched an investigation into the platform. The move comes as the crypto industry faces increasing scrutiny from regulators. The company has denied any wrongdoing and has vowed to fight the allegations.

The SEC has already taken action against several companies for allegedly violating securities laws, and more enforcement actions are expected in the coming months. It is reportedly looking into whether they violated securities laws by offering unregistered securities.

Despite the legal troubles, Celsius remains a popular platform for cryptocurrency users and has over $12 billion in assets under management and offers competitive interest rates on loans and deposits.

It remains to be seen how the recent changes will impact the company's business. It is not clear what the new legal team will advise, but a bankruptcy filing is one option that is being considered, which could lead to a major blow to the crypto industry.

Source: https://cointelegraph.com/news/celsius-changes-legal-team-pays-off-20m-in-aave-debts
Felix NG

Jul 11, 2022
Crypto News

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