Following bankruptcy, the CeFi lender is planning an ambitious comeback by offering crypto custodial services. According to the New York Times, Celsius Network is one of the many companies that have been hit by this pandemic. The company, which is headquartered in the United States, was forced to declare bankruptcy in July.
In July, Celcius froze the accounts of its customers, leaving many confused individuals behind. However, this news raised hopes of recovery of millions of dollars held for ransom.
CEO Alex Mashinsky denied rumors that the company had gone bankrupt in the weeks before the announcement. The company also said that it would be able to repay all its obligations to the depositors.
Even before customers’ accounts were frozen, Celcius experienced a sharp reduction in prices. The value of the CEL token fell from a high of $8.25 in June to nearly halving at the time of the announcement.
Recovery plan “Project Kelvin”
Celcius CEO Mashinsky addressed that the company will use a recovery scheme called “Project Kelvin” where customers will get their deposits back and the next section will return the remaining coins. “It is not that we do not want to give back the coins or that we are somehow delaying the process. It is in our best interest that as many detained persons as possible get their money at the earliest.” Mashinsky said.
according to a TweetThe unsecured creditor community disagrees with Kelvin that the more pressing issues have yet to be addressed, and that the entire process could be a “staying strategy.” It’s still unclear when exactly depositors will get their money back, but Mashinsky’s statement gives some hope that the process may not take as long as initially feared.