Celsius Network Announces Shift To Crypto Custody Business Model: What You Need To Know

There seems to be no end in sight for the Celsius Network drama. After filing for Chapter 11 bankruptcy, the crypto lending platform will now shift its business model to crypto custody services. 

What Happened: According to a recording sent to the New York Times by Tiffany Fong, Celsius (CRYPTO: CEL) CEO Alex Mashinksy shared plans to save the company by switching from lending to crypto custody.

On the recording, Mashinksy and Oren Blonstein, another Celsius executive, defended their plans after receiving skeptical pushback from company employees. 

They also mentioned the name of this new project, Kelvin, after the unit of temperature. 

A Celsius spokeswoman stated that the company usually holds internal meetings to “prepare for all scenarios.”

“Our employees are central to our efforts,” the statement said. “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.”

A demand from the U.S. Department of Justice for an independent examiner to review Celsius' finances and operations in bankruptcy was granted with Chief U.S. Bankruptcy Judge Martin Glenn scheduled to consider the request at a Sept. 14 hearing.

Our next hearing is currently scheduled for September 14, 2022. We look forward to continuing to keep our customers updated throughout our process.

— Celsius (@CelsiusNetwork) September 1, 2022

Celsius purchased in November 2021 an Israeli cold-storage custodian start-up for $115 million named GK8, which could be part of the assets considered in the Celsius bankruptcy.

Photo: mundissima via Shutterstock