Celsius Token Rockets 200% in One Week
24 Sep, 2024 ● Crypto News
The Celsius Network's native token saw a significant surge of over 300% a month after initiating a $2.5 billion repayment plan for more than 250,000 creditors.
A court filing on August 26 revealed that the bankrupt digital asset lender had repaid approximately $2.53 billion to 251,000 creditors.
At the time, the Celsius (CEL) token was trading at $0.16, according to data from TradingView.
By September 23, the token’s price had increased to $0.65, marking a 300% gain since August 26. At the time of publication, CEL was trading around $0.58.
Despite this recovery, the token remains down by 1,287% from its all-time high of $8.05, which it reached in June 2021.
On August 26, Celsius repaid around 84% of the total assets owed to creditors, amounting to $3 billion.
Although a majority of creditors have been repaid, some eligible creditors have not claimed their digital assets, with many being owed relatively small amounts.
The filing indicated that 64,000 remaining creditors have less than $100 in assets to claim, while 41,000 are owed between $100 and $1,000 in crypto.
The small amounts may explain why some creditors have not claimed their funds, as "they may not be incentivized to take the steps needed to successfully claim a distribution," the filing stated.
The bankruptcy administrator also reported attempting more than 2.7 million distributions for eligible creditors.
Celsius filed for bankruptcy in July 2022, informing users via email that it had filed for Chapter 11 reorganization, following the hiring of bankruptcy-specialized lawyers just days earlier.
The bankruptcy resulted in fines of up to $4.7 billion from the United States Federal Trade Commission.
The company expressed satisfaction with the resolutions it reached with various U.S. regulatory bodies.
Additionally, former CEO Alex Mashinsky was arrested by prosecutors and charged with financial fraud, misleading customers, and manipulating the token’s price.
Sources:
https://cointelegraph.com/news/celsius-token-300-percent-repayment-plan
