Celsius Has Spent More Than $3 Million On Legal Expenses

Celsius, the embattled cryptocurrency lender, has spent more than $3 million on legal expenses as it advances through Chapter 11 bankruptcy procedures.

According to a statement filed on Friday, the legal firm Kirkland & Ellis charged the crypto lender over $2.6 million in fees while representing Celsius in Chapter 11 proceedings between July 13 and July 31.

According to a comparable document, another legal representation, Akin Gump, charged over $750,000 for its services between July 13 and August 31. Celsius has already spent more than $3 million on legal bills.

Celsius filed for Chapter 11 bankruptcy in July after suspending withdrawals and transfers in June due to volatile market circumstances. Since then, it has been going through a reorganization procedure and looking for methods to pay creditors.

The Vermont Department of Financial Regulation accused the firm of operating a Ponzi-like scam in September, and in the most recent legal filing, it released the identities and trade histories of its platform’s customers. As a result of such occurrences, Celsius has lost most of its top leadership, with its CEO and co-founder stepping away.

Later reports indicated significant financial troubles, with $2.8 billion in crypto liabilities and Kirkland & Ellis forecasting that Celsius will be about $40 million in the hole by the end of October.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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