The CEO of cryptocurrency lending service Celsius Alex Mashinsky is not going to give up – together with Oren Blonstein they want to turn the company into a custodial service.
Crypto lender Celsius filed for bankruptcy back in mid-July. But the company’s management wants to keep the business going. Considering that the service has previously provided services of custodial accounts, the change of the main line of business to the storage of crypto assets looks quite workable.
Alex Mashinsky and Oren Blonstein, who holds the positions of head of innovation and head of compliance, are going to “resurrect” their company as part of the Kelvin project. The firm will store users’ assets and earn profits from commissions for certain transactions.
The society representing Celsius creditors called on the company to continue providing various lending services and staking. Mashinsky himself compared the current situation with Apple and Delta Airlines. Apple was close to bankruptcy in 1997 and Delta Airlines filed for bankruptcy in 2005.
“If the cornerstone of our business is asset storage, but our clients ask us to add various services, like staking, lending, or exchanging one asset for another, then we can very well charge a commission for these services,” Blonstein said.
Earlier, the Vermont Department of Financial Regulation submitted a document to the court in which it accuses the Celsius cryptocurrency service of working on a pyramid scheme.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
