Celsius token rallies by 300%
The Celsius Network’s native token, CEL, has experienced a significant rally of over 300% in the past month, following the conclusion of a $2.5 billion repayment plan to its creditors.
According to court documents filed on August 26, the bankrupt cryptocurrency lender successfully repaid around $2.53 billion to 251,000 creditors. At the time of the repayment, CEL was priced at $0.16. By September 23, the token’s price had risen to $0.65, marking a notable recovery, although it remains well below its June 2021 peak of $8.05.
Despite the successful repayments, a considerable number of smaller creditors, particularly those owed less than $1,000, have yet to claim their funds. The filings revealed that 64,000 creditors are in this category, with 41,000 of them owed between $100 and $1,000. The bankruptcy administrator suggested that the complexity of the claims process and the relatively small amounts owed could be deterring these creditors from claiming their repayments.
Celsius filed for bankruptcy in July 2022, facing ongoing legal challenges, including potential fines of up to $4.7 billion from the U.S. Federal Trade Commission. Additionally, former CEO Alex Mashinsky was arrested on charges of financial fraud.
