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Celsius replaces his lawyers and pays a debt of 20 million dollars with Aave

Celsius replaces his lawyers and pays a debt of 20 million dollars with Aave

Although caught in the net of the crypto bear market, Celsius had a negative impact on the situation. The crypto lending platform is struggling to disentangle itself from the effect of insolvency. He suspended the withdrawal of clients from the platform to weather the storm. Additionally, he had previously retained attorneys from Akin Gump Strauss Hauer & Feld LLP.

However, Celsius seems to take different measures to save his sinking ship. The firm reportedly changed its legal team by hiring new attorneys from Kirkland & Ellis LLP. It was replaced by the same law firm that handled Voyager Digital’s bankruptcy filing last week.

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The Wall Street Journal reported on the new Celsius action on Sunday. Celsius plans to restructure his move with the new legal team through professional advice from him. In addition, the loan company would obtain a bankruptcy filing from their new legal advisors.

Kirkland & Ellis LLP has been a strong international law firm since its inception in 1909. Its activities span many areas, including mergers and acquisitions, private equity and other transactions in the corporate world.

The law firm handled Voyager Digital’s bankruptcy filing as legal counsel. Kirkland & Ellis LLP filed the suit on July 5 for Voyager Digital in the New York District Court. The lawsuit came after the lending platform halted activities such as withdrawals, deposits, and transactions due to insolvency.

Celsius debt payment movements and their implications

In a new development, Celsius reportedly took positive steps to reduce its debts to DeFi lending protocols. The firm paid Aave with approximately 20 million USD Coin (USDC). The refund was reported on Sunday via a screenshot from Peckshield, a blockchain company. It was concluded as a transfer to Aave Protocol V2 from the Celsius wallet.

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As the lending platform reduces its debt, it could benefit its depositors by getting their funds back. Joni Pirovich, a crypto lawyer, said last week that Celsius’s loan repayment measures were very beneficial.

This would help the company free up most of its principal or collateral, which would meet the withdrawal needs of clients. Since June 13, the firm has suspended all withdrawals on its platform to avoid losing funds in the event of bankruptcy.

Remember that Celsius has raised over $500 million worth of collateral in Wrapped Bitcoin (wBTC). This happened on Thursday of last week after paying off his debt to MakerDAO of approximately $41.2 million. With this latest payment to Aave, Celsius is getting closer to paying off all of its debts.

Aave falls to $75 on the 1-day chart | Source: AAVEUSD on TradingView

According to Zapper, a DeFi tracking company, Celsius is now $215 million in total debt. The breakdown reveals that he still owes Aave approximately $82,500 in REN and $130 million in USDC. In addition, he owes the Compound Protocol approximately $85.2 million in DAI.

Pexels Featured Image, Chart from TradingView.com

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