cryptoknowmics.com
Celsius, a crypto lending business that is now going through bankruptcy, intends to restructure around custodial services for cryptocurrencies. The CEO of Celsius, Alex Mashinsky, with the head of innovation and chief compliance officer, Oren Blonstein, allegedly set up the Kelvin project. The goal is to revive the business by keeping customers' cryptocurrency and levying fees on certain transactions. Mashinsky made the declaration during an employee meeting on September 8, when the firm considered potential possibilities after declaring Chapter 11 bankruptcy in July.
Committee Of Unsecured Creditors
The Committee of Unsecured Creditors, a legal group representing Celsius' creditors, allegedly asked the company to keep providing services like loans, staking, and custody. Maskinsky contrasted the platform's potential recovery to that of Apple and Delta Airlines, which both filed for Chapter 11 bankruptcy in 2005 and 1997, respectively. According to Celsius, there are no costs associated with transactions, withdrawals, inception or early termination under its present business model. The committee raised concerns about Mashinsky's participation with Celsius and the projected Kelvin project. As per the reports, Blonstein stated to Celsius staff,
"If the foundation of our business is custody, and our customers are electing to do things like stake somewhere or swap one asset for the other, or take a loan against an asset as collateral, we should have the ability to charge a commission."
Celsius Network Deceived Investors
According to a recent filing by the Vermont Department of Financial Regulation, the cryptocurrency lender Celsius Network allegedly misled investors about the state of its finances by using its CEL token to strengthen its balance sheet and occasionally using new investor funds to reimburse previous investors. The agency submitted documents in support of the motion U.S. Trustee office to hire an independent examiner, arguing that Celsius has not been transparent about its finances. The organization is one of several state authorities investigating the bankrupt crypto lending company throughout its ongoing bankruptcy proceedings.