During a meeting held on September 8, Alex Mashinsky, the CEO of Celsius, made a statement that he plans to restructure the company in order to focus its activities on crypto custody. This statement was made as Celsius recently filed for bankruptcy.
Celsius could become Kelvin
Celsius is currently in the midst of bankruptcy proceedings. Looking to brighter prospects for the future, the crypto services company announced its new intentions. CEO Alex Mashinsky and his team plan to relaunch business activities from a new identity: Kelvin. The new company will focus on the crypto storage users, while charging them certain fees for transactions.
Celsius’ decision would be based on a recommendation made by the Committee of Unsecured Creditors. It is a legal entity that represents Celsius’ creditors in their efforts to recover their funds. The entity would have suggested to Celsius to continue to offer services such as custody of cryptocurrencies.
For Mashinsky, this new activity promises to be radiant. Moreover, he did not hesitate to compare his company to Apple and Delta Airlines which, respectively in 1997 and 2005, came close to bankruptcy and filed for bankruptcy.
Towards the application of fees?
In its current business model, Celsius does not plan to charge any transaction, withdrawal or early termination fees to its customers. However, such costs could occur according to sources close to the company. In this regard, Blonstein, a member of the management team, reportedly told company employees that: “If the basis of our business is custody, and our clients choose to do things like stake somewhere or trade one asset for another, or take a loan against an asset as collateral, we should have the ability to charge a commission. »
Be that as it may, whether the costs are allowed or not, the society is currently in bankruptcy proceedings. Regulators have made several allegations against it.
On September 7, the Vermont Department of Financial Regulation said the company’s lending platform had fooled the regulatorsfailing to comply with securities laws.
In addition, users of the platform have multiplied their appeals to the courts. This, in order to recover the more than 22.5 million dollars of funds that have been in the custody of Celsius since it has froze withdrawals in June.
The Celsius company is in a difficult situation. In addition to having to deal with financial regulators, it is required to respond to the demands of its clients who demand the recovery of the funds entrusted to it. Alex Mahinsky, its CEO, announced that the company will modify its activities, in a plan which consists in reinventing it.
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