Celsius repays $20M in Aave debts, reforms legal team

By: Michael Wilson

July 11, 2022 9:57 AM

The embattled crypto lending platform continues to wind down its debts to Aave one of the largest decentralized finance (DeFi) lending protocols after it reportedly just paid off 20 million USDC to the DeFi lending protocol.

Celsius network has reportedly hired the same law firm that assisted Voyager Digital with its bankruptcy, the lawyers from Kirkland & Ellis LLP will be advising the embattled crypto firm on its restructuring options.

The Wall Street Journal reported on July 10, that the company has contracted lawyers from Kirkland & Ellis LLP to replace the Akin Gump Strauss Hauer & Feld LLP law firm previously hired by Celcuis. the newly hired lawyers will advise the crypto firm on exploring restructuring options as well as a bankruptcy filing.

Kirkland & Ellis LLP, the 113 years old law firm was founded in 1909. portrays itself as an international law firm that serves clients in private equity, M&A, and other corporate transactions.

Voyager Digital after it paused deposits, withdrawals and trading activities on issues of liquidity, tapped up lawyers from Kirkland & Ellis LLP to assist with its bankruptcy proceedings which was filed in the Southern district Court of New york on July 5.

Concerns around the crypto space is that the embattled crypto lender may follow a similar path to Voyager Digital. However, Celsius has continued to wind down its debts to decentralized finance (DeFi) lending protocols, after it just paid off 20 million in USD Coin (USDC) to Aave protocol. The transaction was picked up by Peckshield, a blockchain analytic firm on July 10, after it shared screenshots of the 20 million USDC transferred to Aave protocol V2 from Celcuis a wallet.

This is just another positive statement move by Celcuis after the lending platform recently paid off its remaining $41.2 million debt to Maker protocol on July 7, which freed up collateral worth over $500 million in Wrpped Bitcoin (wBTC).

However, Zapper the Defi tracking platform shows that Celsius still owes around $130 million in USDC and $82,500 in Ren (REN) to Aave, along with $85.2 million in Dai (DAI) to the Compound protocol which equate the crypto lending firm total debt to $215 million.