Chris Ferraro, the interim CEO of Celsius, has implemented a strategy focused on stability and a more “boring” work culture to revive the bankrupt lender. According to Bloomberg, Ferraro initiated regular staff meetings and emphasized sticking to the budget as part of his efforts to make the company more stable and predictable.
Ferraro, who previously worked in traditional finance at JPMorgan Chase & Co and an affiliate of Cerberus Capital Management, found that the work culture at Celsius before its bankruptcy was characterized by “a lot of yelling” and disruptions. He believed that by fostering a more accountable and stable work environment, the company could focus on repaying customers.
Celsius is reportedly close to completing a new bankruptcy plan that will repay customers a portion of their funds. The company is on track to become the first bankrupt crypto company to relaunch, with key stakeholders supporting its restructuring plan. Celsius has also proposed engaging Coinbase as a distribution agent to assist in repaying international customers, a proposal that the U.S. Securities and Exchange Commission (SEC) has objected to.
Kain Warwick Raises ConcernsKain Warwick, the creator of Synthetix (SNX), has expressed his belief that US financial regulators are no longer operating in good faith when it comes to overseeing the cryptocurrency sector. In an interview with Bankless, Warwick mentioned his surprise at the level of “adversarial attacks” on the crypto industry by regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as well as lawmakers in Congress.
He noted that he initially wanted to believe that regulators were genuinely acting in good faith but now feels that they have shifted toward a more adversarial approach, with the goal of winning a battle against the crypto sector. Warwick expressed his disappointment that crypto has become a partisan issue in the US, and he believes that regulators are conducting a clear attack on the industry and its innovative potential.
Despite these challenges, Warwick remains confident that cryptocurrency is a transformative technology that will ultimately have a positive impact on the world. He emphasized the crypto community’s resilience and determination to continue building and innovating in the face of regulatory obstacles.
Warwick’s comments reflect the growing tension between the cryptocurrency industry and regulators in the United States, as authorities seek to establish clearer rules and oversight in a rapidly evolving financial landscape. About US Regulators’ Approach to Crypto
While the restructuring plan is facing some challenges from the SEC, it is nearing completion. A federal judge is scheduled to consider approving Celsius’s plan on October 2, and if approved, the company could begin repaying customers by the end of 2023.
Ferraro’s efforts to bring stability and accountability to Celsius reflect the challenges faced by crypto companies in navigating regulatory issues and rebuilding trust with customers after experiencing financial difficulties.