Crypto leaners carry the main load of burglary on the crypto market

• The Wall Street Journal reported yesterday that the network is aiming for a restructuring to survive the financial crisis to which it is advisable
• At the beginning of this week, Celsius announced that it temporarily ceases the payment services on its platform

The crypto loan Celsius has used the services of "restructuring" lawyers from the international law firm Akin Gump Strauss Hauer and Feld, WSJ, reported on Tuesday. In view of the alleged liquidity problems, the credit company examines the restructuring path, with the lawyers of the largest US lobby company asked for help.

a Wednesday Report BY the block also indicated that Celsius also got to the bankin institute Citigroup has made an advisory support. According to sources, who are familiar with the matter, no financial support is expected from the bank.

The events occur four days after the crypto hireer shared a memo to its users on Sunday, in which it is said that this was the case "Pausing all the withdrawals, swaps and transfers between accounts" for an indefinite period.

The network justified the decision to hire the services with the hard market conditions. On Monday, the rival crypto loan Nexo made an offer to save Celsius, but nothing came out of it, with Nexo explained that it would return to the drawing board to make another proposal.

crypto loan company suffer from a weakening market

Celsius is not the only lender that currently has to deal with problems. The crypto start-up Blockfi, supported by Peter Thiel, announced on Monday that it will reduce 20 % of its workforce in the middle of a strong market deposition. The financial services company had a reported workforce of over 850 employees - a number that will drop drastically after the cut.

CEO ZAC Prince made it clear that the company's financial situation was struck and cited similar reasons as Celsius. In the last five years since Blockfi was founded, it has collected almost $ 1 billion, including $ 350 million last March. At the beginning of this month, a report, citing the initiated, found that the start-up for crypto loans wanted to achieve a downward round of $ 1 billion, as the conditions on the market deteriorate.

Yesterday Blockfi was also occupied by the IOWA Insurance Commission with a fine of $ 943,396.22 because it had illegally offered unlicensed interest -bearing accounts. The company, which is also supported by Mike Novogratz, enclosed the matter without denying or accepting the indictment.

In particular, this is not the first time that the lender has problems with the supervisory authorities after he had received several cease and relieves in the past. At the beginning of this year, the company paid a fine of $ 50 million to various state supervisory authorities and a corresponding sum directly to the US stock exchange supervisory authority Sec.