Celsius Losses $3M In Legal Battles

Crypto lender Celsius is being crushed from both sides at the moment because on one side, it is struggling for its survival while on the other hand, it had to pay a whopping $3 million as a legal fee to its law firms. This is a situation no one wants to get stuck in. Celsius is trying to get permission to sell its stablecoins to manage its mandatory expenses.

Celsius Pays $2.5M to Kirkland and Ellis

For quite a long time, Kirkland and Ellis has been the go-to choice of Celsius. Kirkland and Ellis is the firm that has been over-viewing the matters related to its chapter 11 bankruptcy filings. The total money charged by Kirkland and Ellis from Celsius in the last three months has crossed $2.6 million.

It is pertinent to mention here that Kirkland and Ellis is not the only law firm providing services to Celsius. Another law firm by the name of ‘Akin Gump’ has also rendered its services to Celsius and charged more than $700k. The amounts collectively reach way over $3m.

It had halted its operations (withdrawals and transfers) in June of this year and later filed for chapter 11 bankruptcy amid the extreme bear market and recession. In the last 3 months, it has considered various restructuring proposals but no progress has been made yet. Some proposals have been declared as attempts of a hostile takeover by its community.

Is It a Ponzi Scheme?

At a time when Celsius is fighting for its survival through a costly legal war, it has been accused of a Ponzi scheme as well. This claim was made recently by the Vermont Department of Financial Regulations. Well, there is no certain proof of a Ponzi scheme yet but the number of problems faced by Celsius has definitely increased as its CEO has also resigned and now it is nothing more than a ship in the ocean without a Captain.