Categories: Market Watch

Celsius Token Surges 300% After Repaying $2.5 Billion to Creditors

The Celsius Network’s native token, CEL, has seen a dramatic surge of over 300% in the past month following the completion of a $2.5 billion repayment scheme to its creditors. Court filings from August 26 revealed that the bankrupt digital asset lender had successfully distributed approximately $2.53 billion to 251,000 creditors. At the time of the repayment, CEL was trading at $0.16.

However, as of September 23, the token’s price had climbed to $0.65, marking a significant 300% increase. While this represents a substantial recovery, CEL remains far below its all-time high of $8.05 reached in June 2021.

Despite the successful repayment, many creditors with smaller claims, particularly those owed less than $1,000, have yet to claim their funds. The filing indicated that 64,000 creditors fall into this category, with 41,000 owing between $100 and $1,000. The bankruptcy administrator suggested that the complexity of the claims process and the relatively small amounts involved might be deterring these creditors from taking action.

Celsius filed for bankruptcy in July 2022, leading to a series of legal challenges. The company faced fines of up to $4.7 billion from the United States Federal Trade Commission, and its former CEO, Alex Mashinsky, was arrested on charges of financial fraud.

Terron Gold

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