Celsius Network hires advisors to prepare for potential bankruptcy

Celsius Network LLC has hired restructuring consultants from advisory firm Alvarez & Marsal to advise on a possible bankruptcy filing, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The move was the latest sign of the financial market downturn hitting the cryptosphere and had sparked a selloff across cryptocurrencies.

Celsius and Alvarez & Marsal did not immediately respond to Reuters requests for comment.

New Jersey-based Celsius - a major US cryptocurrency lending company - froze withdrawals and transfers earlier this month, citing "extreme" market conditions.

Celsius CEO Alex Mahinsky had earlier tried to eradicate rumours of bankruptcy, taking to Twitter to ease customers' minds.

• Bitcoin drops below $20,000 as crypto selloff quickens