The collapse of the experimental cryptocurrency bank Celsius Network was one of the main drivers of this spring’s crypto crash, which erased nearly $1 trillion from the market and ruined thousands of investors. Celsius filed for bankruptcy in July. Now it’s angling for a comeback, the New York Times reported. At a meeting with employees on Sept. 8, Alex Mashinsky, the chief executive of Celsius, outlined an audacious plan to revive the firm, according to a recording of the event. He and Oren Blonstein, another Celsius executive, said that they hoped to rebuild the company with a focus on custody — storing people’s cryptocurrencies for them, and then charging fees on certain types of transactions. They said the project was code-named Kelvin, after the unit of temperature. Mashinsky faced skeptical questions from employees. He compared the rebuilding process to corporate turnarounds at some of the world’s most famous brands, including Pepsi, which went bankrupt in 1923 and 1931. A recording of the meeting was sent to Tiffany Fong, a Celsius customer who has made YouTube videos about the springtime crash. She shared the recording with The Times, which confirmed its authenticity. In a statement, a Celsius spokeswoman said the company regularly held internal meetings to “prepare for all scenarios.” Celsius is attempting a revival at a moment of transition for the crypto industry, as start-ups whose reckless practices triggered the downturn try to regroup. In recent months, other instigators of the crash — including Do Kwon, the trash-talking founder of the failed cryptocurrency Luna — have also pursued fresh crypto ventures.
