CEO Of Celsius Wants Cryptocurrency Custody To Be Firm’s New Focus

ByEdward Thompson

Sep 13, 2022

Celsius, a cryptocurrency lending platform is now planning to change the way it operates. The Celsius network recently filed for bankruptcy and it is still going through bankruptcy proceedings.

Celsius Wants to Change Orientation

The company currently going through bankruptcy has plans of changing the way it operates in the future. The executives at the lending platform have announced that they want to rebuild their company as a platform-oriented toward services in the cryptocurrency custody space.

On Tuesday, Alex Mashinsky, the CEO of Celsius talked about the future plans of the company. Mashinsky, who is also the head of innovation at Celsius, was the one to talk about the company’s future orientation.

Mashinsky stated that they have plans to revive their business and for this purpose, they have already worked on a revival project named “Kelvin”.

The particular project will be responsible for storing the cryptocurrencies of the users and charging fees to the users for providing services.

Plans were discussed on September 8

Alex Mashinsky revealed that he and Oren Blonstein, the chief compliance officer at Celsius are both on the same page about the company’s next move.

He revealed that they held a company meeting on September 8, and the company employees were also present. It was at the meeting that they laid out the next plans for the company and considered the options they need to choose going forward.

They have also discussed the future of the company following the Chapter 11 bankruptcy they filed back in July.

Changes to the Business Model

Previously, Celsius had a business model that did not impose any charges on the users no matter what they did. The users were not charged any fees whether they offered a new account, made transactions, withdrew money, or even terminated services.

However, many inside the company have shared their concerns about Mashinsky, in regards to his involvement with the company. They have also shared concerns about the project that Mashinsky has offered that aims to change the company’s orientation.

Mashinsky to be judged

Ever since the Celsius Network filed for bankruptcy, many developments have taken place that has raised many questions.

The creditors have expressed great concerns because the Celsius Network and Mashinsky have been found misleading the state regulators. Multiple allegations have been made against Mashinsky about providing wrong information to the regulators about the company’s financial condition.

The company has also been found in breach of the securities laws’ compliance. Many users have also filed lawsuits against the lending firm and Mashinsky demanding to be reimbursed for the investments in the firm.

So far, the users have claimed over $22.5 million against the Celsius Network in their court filings.

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