Celsius Network CEO is reportedly discussing a new project that could help rebuild the bankrupt crypto lending platform.
According to a new report of the New York Times, Alex Mashinsky laid out the “bold plan” called Kelvin to revive Celsius months after the struggling company filed for bankruptcy in July.
Mashinsky and Celsius, chief innovation officer and chief compliance officer, Oren Blonstein, reportedly wanted to rebuild the company with a focus on custody.
If Project Kelvin comes to fruition, Celsius will offer services to store users’ crypto assets on their behalf. The company may then charge fees for certain types of transactions.
As he answered skeptical questions from employees, Mashinsky cited how other famous companies such as Pepsi have made a successful comeback from bankruptcy.
“Does that make Pepsi less good? Delta has filed for bankruptcy. Don’t you fly with Delta because they filed for bankruptcy? »
According to Mashinsky, Celsius is working with the Unsecured Creditors Committee, or UCC, which represents the company’s creditors, to develop a plan to restart the business.
The proposal follows allegations that Celsius lost user funds after Mashinsky informed his investment team in January that he would take control of the company’s business strategy.
The executive would have thought that an upcoming Federal Reserve meeting at the time would drive crypto prices down, so he wanted the company to sell large amounts of Bitcoin (BTC).
The Fed meeting did not have the expected outcome and Celsius reported a loss of $50 million that month. It is unclear however to what extent this can be attributed to Mashinsky.
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