The CEO of Celsius Network is reportedly discussing a new project that may help rebuild the bankrupt crypto lending platform.
According to a new report from The New York Times, Alex Mashinsky presented the “audacious plan” called Kelvin to revive Celsius months after the troubled company filed for bankruptcy in July.
Mashinsky and Celsius head of innovation and chief compliance officer Oren Blonstein reportedly want to rebuild the company with a focus on custody.
If project Kelvin pushes through, Celsius will be offering services to store people’s crypto assets on their behalf. The company may then charge fees for certain types of transactions.
As he addressed skeptical questions from employees, Mashinsky cited how other famous companies such as Pepsi made a successful comeback after they went bankrupt.
“Does it make the Pepsi taste less good? Delta filed for bankruptcy. Do you not fly Delta because they filed for bankruptcy?”
According to Mashinsky, Celsius is working with the Committee of Unsecured Creditors, or U.C.C., which represents the company’s creditors, to work out a plan to restart the firm.
The proposal comes following allegations that Celsius lost user funds after Mashinsky informed his investment team in January that he would be taking control of the company’s trading strategy.
The executive reportedly thought that an upcoming Federal Reserve meeting at the time will cause crypto prices to plunge, so he wanted the firm 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 not clear though how much of this can be attributed to Mashinsky.
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