The platform, which has been in financial trouble for years, continues to pay off its DeFi loans protocols debts. It just paid 20 million USDC to Aave.
According to reports, Celsius has hired Kirkland & Ellis LLP lawyers to help it with its restructuring options. This firm also assisted Voyager Digital in its bankruptcy filings last week.
According to the Wall Street Journal report on Sunday, the company has employed lawyers who will advise the company on options including bankruptcy filings in place of the previously-hired law firm Akingump StraussHauer & Feld.
Kirkland & Ellis LLP is an international law firm serving clients in private equity, M&A and other corporate transactions. It was founded in 1909.
The law firm was also appointed general bankruptcy counsel for Voyager Digital. It filed its bankruptcy proceedings in the Southern District Court of New York, days after it had stopped trading, withdrawing money, and deposits on liquidity.
Celsius continues to reduce its debts to Decentralized Finance (DeFi) lending platforms despite concerns. It has just paid off 20,000,000 USD Coin ( USDC ) to Aave.
Peckshield, a blockchain analytics company, shared the latest loan repayment on Sunday. It also shared a screenshot showing the 20 million USDC transfer made from a Celsius wallet into Aave Protocol.
The DeFi tracking platform Zapper indicates that Celsius still owes $130 million in USDC, $82,500 in Ren(REN) to Aave and $85.2 million to Dai ( DAI), to the Compound protocol for a total of $215,000,000.
Last Thursday, the lending platform paid off its remaining $41.2million debt to Maker protocol. This freed up over $500 million in Wrapped Bitcoins (wBTC), collateral.
The reduction of debt is a positive thing for Celsius’ depositors. They have not been able access their crypto funds since June 13 withdrawals were halted and are now at risk of losing their funds if the business goes bankrupt.
Joni Pirovich, a crypto lawyer, told Cointelegraph last week that Celsius’s repayment of its loan position would eventually help its customers as it would allow for capital to be used to fulfill customer withdrawal requests.
Pirovich stated that even if Celsius files bankruptcy, repayment of its loan position or withdrawal collateral could help improve its customers’ situation.