According to an American media outlet article, Celsius CEO Alex Mashinsky presented a revival strategy during an employee-only meeting last week. The plan entails revamping the doomed crypto lending business with a focus on digital asset custody.
The meeting also featured the Committee of Unsecured Creditors, a legal institution representing the company's creditors.
The initiative was dubbed 'Kelvin,' after the temperature unit. According to the report, the creditor committee had serious reservations and questions regarding the Kelvin plan's sustainability, especially with Mr. Mashinsky's continued employment with the company.
Celsius is one of a few cryptocurrency companies to declare bankruptcy after falling into the crypto winter and collapsing counterparties in recent months. The company rose to popularity with an impossible-to-maintain marketing claim: it offered digital asset depositors interest rates as high as 18 percent. This increased the company's controlled assets from over one million clients to $20 billion in 2021.
The report also claimed that Celsius made considerable profits by making speculative bets that failed when the cryptocurrency market collapsed. The platform has tens of thousands of customers' digital assets worth $4.7 billion. The platform is currently evaluating how to reimburse depositors who lost money after betting on Celsius' high payouts.
The American media outlet argued that CEO Mashinsky has no control over Celsius's fate because any recovery plan would require clearance from the New York federal bankruptcy court in charge of the proceedings.
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