Media reports that Celsius CEO plans to revive the company

CEO Celsius Network Alex Mashinsky, at a staff meeting on September 8, outlined a plan to rescue the company from bankruptcy. The The New York Times reports.

Recording of the meeting was provided by Celsius client Tiffany Fong. The publication confirmed its authenticity.

Mashinsky’s plan envisions the firm focusing on crypto-custodial services and “charging a fee for certain types of transactions.” The new project is allegedly to be named Kelvin.

The head of the platform compared Celsius’s possible revival to similar stories of major brands, notably Pepsi (bankruptcy in 1923 and 1931).

“Does this make Pepsi less tasty? Delta filed for bankruptcy. Aren’t you flying Delta because they did that?” Mashinsky asked the staff.

Any new Celsius management plan must receive approval. According to Mashinsky, the company is working with the Creditors’ Committee. However, as a source stated to the publication, after the September 8 meeting, representatives of the committee had “serious concerns” about the Kelvin project.

According to CoinDesk, on September 13, lawyers from the U.S. Federal Trade Commission asked the court to join the Celsius bankruptcy case. They requested copies of the relevant documents — as of writing, the request had not been granted.

On June 13, the crypto-lending platform suspended withdrawals, exchanges, and transfers between accounts. A month later Celsius and some affiliated entities filed for bankruptcy under Chapter 11 Code of the U.S. bankruptcy code.

The platform presented a business-reorganization plan, aimed at using the income of the mining subsidiary to satisfy creditors’ claims. Celsius’s liabilities exceed the company’s assets by $2.85 billion.

In August, the U.S. Trustees’ Office said there were “numerous questions” for the firm’s management. Prior to that, the Financial Times reported on Mashinsky’s involvement in implementing the trading strategy of the crypto-lending platform, which cost “millions of dollars.”

In September, the Vermont Department of Financial Regulation accused Celsius of deceiving investors and manipulating CEL tokens.

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