Former Celsius CEO Once Raised $1 Billion To Save The Company

According to sources close to the situation, Mashinsky aims to invest $1 billion in a new initiative called Celsius Web Service (CWS).

Last year, just as its main business was imploding, Celsius Network pitched deep-pocketed investors on an ambitious plan to white-label some of its services.

Importantly, the new initiative, which will concentrate on Yield and Custody, was proposed to Goldman Sachs and Abu Dhabi-backed firm ADQ in May and June, respectively, before declaring bankruptcy in mid-July.

The program would see the company provide generic versions of its products, including those focused on yield and custody, and was billed as a “web3 toolbox for a New World” in one of the decks.

Moreover, Mashinsky pushed the concept to his Board, which included Laurence Tosi and a representative of the Canadian Caisse de Depot et Placement du Québec until June of last year. Surprisingly, these investors paid $750 million together in Celsius in 2021 but had no interest in CWS.

Incidentally, a Goldman Sachs presentation from May 2022 stated that Celsius intended to study how it might partner with the bank to boost its engagement in the cryptocurrency sector.

Mahinsky’s effort to create a slew of new products and move Celsius away from its primary business of lending out crypto assets, on the other hand, did not happen quickly enough to prevent the loan business from drowning the whole firm. The company suspended withdrawals on June 12 and declared bankruptcy a month later, owing more than $4.7 billion to over 100,000 members.

According to the source, when the pressure on Celsius mounted in May, Mashinsky sought to shift his emphasis to the CWS project. Others in the sector were taken aback by the plan, considering that Celsius had just secured $750 million from outside investors.

Nevertheless, the funds were already spent at that moment. In response to inquiries about the CWS project, Mashinsky sent a link to a blog post outlining the real tale of Celsius’ death, alleging that Alameda Research, a subsidiary of the defunct FTX, was to blame.

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