Crypto lender Celsius Network has hired restructuring attorneys from the law firm Akin Gump Strauss Hauer & Feld LLP to seek assistance on its current financial troubles, according to a Wall Street Journal report citing “people familiar with the matter.”

First and foremost, Celsius is looking for possible financing options from investors, however, the New Jersey-based firm is not ruling out other alternatives, including a financial restructuring, per the WSJ's report.

Valued at $3.5 billion after raising $750 million in a Series B funding round last November, Celsius sent shockwaves throughout the crypto industry when it announced the suspension of all withdrawals on its platform on Sunday.

What Is Celsius and Why Is It Crashing?

Amid a wider crypto market crash, crypto lending platform Celsius announced on June 12 that it was suspending all withdrawals on its lending platform, citing “extreme market conditions” and a need to “stabilize liquidity.”  In the hours after the announcement, Celsius’ native token, CEL, plummeted by 70% in a single hour; by the following day it was trading at over 40% down. CEL’s downward spiral came amid a giant selloff that saw crypto’s total market capitalization plunge to less than a trilli...

The firm cited “extreme market conditions” and a need to “stabilize liquidity” as its reasoning for the move.

Before it paused operations, Celsius claimed it had a user base of 1.7 million, offering high yields—up to 18%—on customer deposits. Per the firm’s website, it had $11.8 billion in assets under management as of May 17, 2022.

Celsius breaks its silence

The firm took to Twitter on Tuesday to say that it is “working as quickly as possible and will share information as and when it becomes appropriate.”

“Acting in the interest of our community remains our top priority,” wrote the firm.

CEL, the platform’s native token, plunged as low as $0.31 following the Sunday announcement, losing roughly 70% of its value in a matter of an hour.

The token rallied above $1.10 soon after the firm’s tweet on Tuesday, before correcting to its current value of $0.49, up over 50% on the day, per CoinMarketCap.