Crypto lender Celsius is preparing to file for Chapter 11 bankruptcy, CNBC reported Wednesday.
The outlet reported that Celsius has begun informing state regulators, who have been investigating the activities of the firm, about the pending filing.
The development comes days after Celsius tapped Kirkland & Ellis LLP to advise on a potential restructuring. Earlier Wednesday, Celsius moved to pay off its remaining crypto debt to decentralized lending protocols.
Like other firms in the crypto finance space, Celsius has faced significant financial headwinds amid a downturn in the digital asset market. Just over a month ago, Celsius announced a halt to withdrawals and transfers.
This story is developing.
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