Celsius Network to Pay Around $3M as Legal Fees

• Celsius Network filed for bankruptcy under Chapter 11 of the bankruptcy rules. 
• Chief Executive Officer and Founder of Celsius Network resigned in the last week of September 2022. 

Celsius Network was among one of the biggest crypto lenders globally. But due to ongoing volatility in the crypto market, Celsius filed its bankruptcy on 13 July 2022. 

According to the filing released last Friday, 14 October 2022, it was noted that the total amount is spent on the legal procedure of Celsius Network bankruptcy filing.  

Kirkland and Ellis issued the expenditure statement of the legal proceeding from 13 July to 31 July for Celsius, around $2.6M million. 

Akin Gump also charged the company $750,000 for his services between 13 July and 31 August.

These huge legal fees give rise to the costs incurred by crypto companies that have gone bankrupt, including Voyager Digital, Wald Group, Babel Finance, and Zipmex. While the crypto sector is rife with these bankruptcy cases, Celsius Network stands out as it was the first firm to stop withdrawals on its platform.

The volatility in the crypto market has troubled all cryptocurrencies, and it is believed that the cryptowinters started after the crash of Luna. After the crash of Luna, Bitcoin lost its price, and the current price of Bitcoin decreased by 70% to its all-time high trading price, which was around $70K.      

 Earlier, at the end of September 2022, Alex Mashinsky, who started the cryptocurrency lending firm Celsius Network in 2017, resigned from his post as CEO of the firm. He said that his work became an ‘increasing distraction.’ 

Mashinsky submitted his letter of resignation on 27 September 2022, effective immediately, to the Special Committee Of the Board of Directors of Celsius Network Ltd, apart from his directorships and other positions at each of its direct and indirect subsidiaries, except for his director position at Celsius Network Ltd.

According to a reliable media report, on 5 October 2022, Daniel Leon, the co-founder of Celsius Network, resigned from his post.   

Bloomberg confirmed the resignation of Daniel after the official statement of Celsius Network “We confirm that Daniel Leon resigned from his position at Celsius and is no longer part of the organization.”   

An analytics platform, Nansen compiled the data that neatly $1 Million in CEL and USDC transferred to UniSwap and MetaMask from the beginning of this month. 

At the same time, the wallets that were used for the following transaction belong to ex-CEO of Celsius Network, Alex Mashinsky.

A blockchain spy, Coffezilla, who once exposed a crypto scam on YouTube, claimed that he had spotted one more wallet that transferred nearly $225,376 in CEL and USDC in the previous month, owned by the ex-CEO of Celsius Network, Mashinsky. 

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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