Celsius CEO Suggests Overhauling Company to Focus on Cryptocurrency Custody

  • Celsius CEO announced that the organization could be renewed.
  • Percentile creditors required the company to provide services such as loans, bets and guardianship.

Alex Mashinsky, CEO of Celsius, announced that the company is working to renew the services of Crypto Custody, which went bankrupt in July.

company renewal

According to a report in the New York Times on Tuesday, Celsius CEO Alex Mashinsky and Chief Innovation Officer and Chief Compliance Officer Oren Blunstein sought to revive the company by launching a project titled Kelvin. Which would store users’ cryptocurrency and charge a fee. For some of the transactions, Mashinsky reportedly disclosed at a staff meeting on September 8, where the company reviewed possible future scenarios amid its Chapter 11 bankruptcy in July.

The Unsecured Creditors Committee, a legal entity representing Celsius’ creditors, asked the company to continue providing services such as loans, bets and guardianship. Maskinsky linked a potential platform resurgence with the return of Apple and Delta Airlines. Each was on the brink of bankruptcy in 1997 and filed for Chapter 11 in 2005, respectively.

Celsius He said That under its current trading strategy, it does not charge transaction fees, withdrawals, creation or early termination. According to a source familiar with the situation. The committee was concerned about Mashinsky’s involvement with Celsius and the planned Kelvin project.

Blonstein reportedly told Celsius employees

“If the basis of our business is custodianship, and our clients choose to do things like stake in a place or exchange one asset for another, or take out a loan against an asset as security, then we should have the ability to charge a commission.”

During the bankruptcy proceedings, the regulators filed claims against Celsius. The Vermont Department of Financial Regulation filed a lawsuit against both the lending platform and Mashinsky for misleading state authorities regarding the company’s financial health and compliance with securities laws on September 7. Since the withdrawals were frozen in June.

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