Celsius Network’s native token experienced a remarkable surge of over 300% following the initiation of a $2.5 billion repayment scheme aimed at over 250,000 creditors. A recent court filing on August 26 revealed that the bankrupt digital asset lender had repaid approximately $2.53 billion to around 251,000 creditors.
According to data from Cointelegraph Markets Pro, the Celsius (CEL) token was trading at $0.16 on that particular day. By September 23, the token’s price had risen to $0.65, marking a striking increase of 300%. As of now, the token is trading around $0.58. Despite this remarkable recovery, the token's value remains significantly below its all-time high of $8.05, which it reached in June 2021, indicating a staggering decline of approximately 1,287% from its peak.
On August 26, Celsius distributed about 84% of the assets owed, totaling roughly $3 billion. While the majority of creditors have now received payments, it is important to note that not all eligible creditors have claimed their digital assets, particularly those with smaller amounts owed. The filings indicate that 64,000 creditors have less than $100 in assets to claim, while 41,000 are owed between $100 and $1,000 in cryptocurrency.
The small amount of owed assets appears to act as a disincentive for some creditors to take the necessary steps to claim their funds. The bankruptcy administrator reported making attempts at over 2.7 million distributions for eligible creditors. Celsius filed for bankruptcy back in July 2022, sending a formal notification via email to its users about the petitions for Chapter 11 reorganization.
This decision followed closely after the platform engaged lawyers specializing in bankruptcy cases. The bankruptcy proceedings also resulted in substantial fines of up to $4.7 billion from the United States Federal Trade Commission, with the company stating its satisfaction with the resolutions reached with various U.S.
regulatory agencies. Additionally, the company’s former CEO, Alex Mashinsky, faced arrest and charges related to financial fraud, misleading customers, and manipulating the token’s price..