Celsius Network Token Surges After Repayment Scheme

According to Cointelegraph, Celsius Network’s native token experienced a significant surge of over 300% following the initiation of a $2.5 billion repayment scheme aimed at over 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. Data from Cointelegraph Markets Pro indicated that the Celsius (CEL) token was trading at $0.16 on that day. By September 23, the token’s price had risen to $0.65, marking a 300% increase. Currently, the token is trading around $0.58. Despite this recovery, the token remains significantly below its all-time high of $8.05, which it reached in June 2021, representing a decline of 1,287% from its peak. On August 26, Celsius distributed about 84% of the assets owed, amounting to $3 billion. While the majority of creditors have been paid, not all eligible creditors have claimed their digital assets, particularly those with smaller amounts owed. The filing noted that 64,000 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 be a disincentive for some creditors to take the necessary steps to claim their funds. The bankruptcy administrator reported that it had attempted more than 2.7 million distributions for eligible creditors. Celsius filed for bankruptcy in July 2022, sending an email to its users announcing petitions for Chapter 11 reorganization. This move came shortly after the platform hired bankruptcy-specialized lawyers. The bankruptcy proceedings resulted in fines of up to $4.7 billion from the United States Federal Trade Commission. The company expressed satisfaction with the resolutions reached with various US regulatory agencies. Additionally, the company’s former CEO, Alex Mashinsky, was arrested and charged with financial fraud, misleading customers, and manipulating the token’s price.