Having already put a stop on withdrawals and transfers due to the unfavourable market conditions, Celsius Network, the crypto-lending platform has now laid off a quarter of its workforce.
The American-Israeli company has asked 150 employees to leave so that it can stabilise its operations.
The Company had raised $750 million in funding in late 2021, attaining a valuation of $3 billion. It serves about 1.7 million customers and has assets worth $11.8 billion. It is now desperately considering measures to preserve and protect its assets.
In June 2022, Vault, another crypto exchange also let go 30 per cent of its workforce, while Bybit let go 2,000 employees. Downsizing happened at many other global crypto exchanges too, including Coinbase.
Celsius will be looking at ways to recover solvency and come out of its liquidity crisis. It will look at strategic transactions, restructure liability or resort to other means to handle the crisis.
Speculations have been rife ever since the liquidity crisis came to light. Some reports suggest that the Company has turned to advisors for help in case it goes bankrupt.
Other media reports suggest that certain companies may offer to buy out the crypto-lending platform or help it to stay afloat.
Whether Celsius will lift the freeze on withdrawals or whether its customers will have to look at a legal course of action cannot be said just yet.