Last Updated on September 14, 2022 by Bitfinsider

One of the main causes of this spring’s crypto meltdown, which caused a loss of roughly $1 trillion from the market and bankrupted thousands of investors, was the failure of the experimental cryptocurrency bank Celsius Network. In July, Celsius declared bankruptcy. It is currently attempting a return.

According to a recording of the meeting provided to The New York Times, Celsius CEO Alex Mashinsky presented a bold plan to restart the company on Thursday. Together with Oren Blonstein, another executive from Celsius, he stated that they intended to restructure the business with a focus on custody, which entails holding customers’ cryptocurrency for them and then charging fees for specific kinds of transactions.

Mashinsky, 56, was questioned by coworkers who were doubtful. He contrasted the process of rebuilding to corporate turnarounds at some of the most well-known brands in the world, such as Pepsi, which declared bankruptcy in 1923 and 1931.

A spokeswoman for Celsius claimed in a statement that the business frequently has internal meetings to “prepare for all scenarios.” It also stated: “Our employees are central to our efforts,” and added that “We will continue to rely on them to assist in preparing whatever requirements would be necessary to execute the final recovery plan as quickly as possible.”

Celsius gained notoriety for making a false marketing claim: “Deposit your digital assets and receive interest as high as 18%.” Additionally, the business allowed consumers to participate in “staking,” an investing strategy that enables holders of cryptocurrency to earn rewards, and to take out loans using their deposits as collateral. Celsius had one million consumers and $20 billion worth of assets under its control in 2021.

However, Celsius made reckless investments that swiftly went bad when the cryptocurrency market crashed in order to obtain its big returns. Celsius revealed that it owed customers $4.7 billion in court this summer.

Mashinsky doesn’t actually control what happens to Celsius. Martin Glenn, the New York federal bankruptcy judge who is supervising the proceedings, must approve any proposal. The result could come in a variety of shapes, including a buyer buying a portion of the business.