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Crypto lender Celcius Network  Releases Recovery Plan Here is What Traders Should Know

Written by: Qadir AK

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Sep 14, 2022

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After bankruptcy, the CeFi lender is planning an ambitious comeback by offering crypto custodial services. According to the New York Times, the celsius network is one of many companies that have been hit hard by the pandemic. The company, which headquarters are based in the USA, was forced to declare bankruptcy in July.

In July, Celcius froze their customers’ accounts which left behind many confused individuals. However, this news brought hope to retrieve the millions of dollars held to ransom.

CEO alex mashinsky denied rumors that the company was insolvent in the weeks leading up to the announcement. The company also said that it would be able to repay all of its obligations to depositors.

Celcius had already experienced a sharp decrease in price, even before the customers’ accounts were frozen. The value of the CEL token had fallen from a high of $8.25 in June to almost half by the time the announcement was made.

The recovery Plan ” Project Kelvin”

The Celcius CEO Mashinsky addressed that the company would use a recovery plan called “project Kelvin” where the customers will get back their deposit and the next part will be returning the rest of the coins. “It’s not like we don’t want to give back coins or that we’re somehow delaying the process. It’s in our best interests to let as many individuals in custody get their money as soon as possible.” Mashinsky said.

According to a tweet, the Celsius Unsecured Creditors community disagrees with Kelvin in that more pressing issues have yet to be addressed, and the entire procedure may be a “stalling tactic.” It is still unclear when exactly depositors will get their funds back, but Mashinsky’s statements offer some hope that the process may not take as long as initially feared.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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