Celsius CEO Propose Reforming the Firm to Focus Crypto Custody

Celsius's CEO says revamping the firm to focus crypto custody
  • Celsius’s CEO announced that the organization can be renovated. 
  • Celsius creditors requested the firm to provide services such as loans, staking, and custody.

Celsius CEO Alex Mashinsky announced that the company has been revamping Crypto Custody Services, which went bankrupt in July.

Revamping the Firm

According to a New York Times report released Tuesday, Celsius CEO Alex Mashinsky and chief innovation officer and chief compliance officer Oren Blonstein sought to revive the company by launching a project entitled Kelvin. Which would store users’ cryptocurrency and charge fees. for certain transactions, Mashinsky reportedly made the revelation at a Sept. 8 personnel meeting during which the company reviewed possible future scenarios amid its Chapter 11 bankruptcy in July.

The Committee of Unsecured Creditors, a legal entity representing Celsius’ creditors, requested the firm to continue providing services such as loans, staking, and custody. Maskinsky linked the platform’s possible comeback to that of Apple and Delta Airlines. Each of which was on the edge of bankruptcy in 1997 and filed for Chapter 11 in 2005, respectively.

Celsius said that under its present business strategy, it does not charge fees for transactions, withdrawals, origination, or early termination. According to a source familiar with the situation. The committee was concerned about Mashinsky’s participation with Celsius and the planned Kelvin project.

Blonstein reportedly said to Celsius employees

“If the foundation of our business is custody, and our customers are electing to do things like stake somewhere or swap one asset for the other, or take a loan against an asset as collateral, we should have the ability to charge a commission”

During bankruptcy proceedings, regulators have made claims against Celsius. The Vermont Department of Financial Regulation sued both the lending platform and Mashinsky for misguiding state authorities regarding the firm’s financial health and compliance with securities laws on September 7. Users have also taken legal remedy to gain access to more than $22.5 million in funds held by firm since freezing withdrawals in June.

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