The embattled crypto lending firm Celsius is trying to cope up with its sufferings as soon as possible. In July, 2022, crypto lender filed for Chapter 11 bankruptcy in the federal court of Southern District of New York. This allowed the firm to restructure and reorganize to bring it back on track. The proposal to reorganize the crypto lender firm as a crypto custodial business came in the wake of similar efforts.
On September 13th, 2022, NY Times reported Celsius Network LLC is thinking towards reorganizing the firm in the form of a crypto custody business. Such efforts came amidst the ongoing bankruptcy proceedings in the court. It’s noteworthy that the lending firm is among the firms that received the worst hit of recent crypto winter.
During a company meeting last week, CEO Alex Mashinsky and an executive at the firm Oren Blonstein noted the company’s plan to expand into custody business. As it turns out, the custodian services of Celsius would be called “Kelvin” and the platform would be charging for using the services.
Company Officials Determined for This Earlier
Blonstein stated in cases where the company would consider custody their foundational business, customers will be allowed to do several operations from staking to swapping the respective assets. Additionally they can also take out loans while collateralizing their assets. He said that these offerings make the firm able to charge the fees for their services.
While iterating positive affirmations for the company’s comeback, Mashinsky took examples of several comebacks in the past. He said PepsiCo Inc. and Delta Air Lines, Inc. like companies have also been through similar phases. Neither those firms given up nor the Celsius is going to suffer any of this.
Earlier there were allegations on the beleaguered crypto firm to act as a ponzi scheme. A prestigious finance regulator accused the company of paying old investors after asking for money from new investors. The allegation is yet to be proven.
Source: https://www.thecoinrepublic.com/2022/09/14/crypto-lender-celsius-seeking-crypto-custody-business/