- Celsius Distributes $2.5 Billion to Creditors
- Celsius Bankruptcy Saga Sees Ending
- Celsius Token Price Dynamics
The Celsius Network token surged by 300% a month after initiating a $2.5 billion repayment scheme for over 250,000 creditors. This occurred in light of the repayment actions and the overall dynamics shown by the token.
Celsius Distributes $2.5 Billion to Creditors
On August 26, a court filing showed that the bankrupt digital asset lender had repaid about $2.53 billion to 251,000 creditors. On that day, according to Cointelegraph Markets Pro, the Celsius (CEL) token was trading at $0.16. By September 23, the token's price hit $0.65, marking a 300% increase. The token currently hovers around $0.58. The filing indicated that of the remaining creditors who have yet to claim their crypto, 64,000 have less than $100 in assets to claim, while 41,000 are owed between $100 and $1,000 in crypto. This suggests that the small amounts may be a reason why many creditors have not made their claims. "They may not be incentivized to take the steps needed to successfully claim a distribution," the filing stated. The bankruptcy administrator also revealed that it had already attempted more than 2.7 million distributions for eligible creditors.
Celsius Bankruptcy Saga Sees Ending
[['In July 2022, Celsius filed for bankruptcy. An email sent to its users stated that the company had filed petitions for Chapter 11 reorganization. The email came days after the platform hired lawyers specializing in bankruptcy. ', 'The bankruptcy resulted in fines of up to $4.7 billion by the United States Federal Trade Commission. The company announced that it was pleased with the resolutions it reached with various regulatory agencies in the US. ', "The company's former CEO, Alex Mashinsky, was also arrested and charged by prosecutors with financial fraud, misleading customers, and manipulating the token’s price."]]
Celsius Token Price Dynamics
The CEL token price appreciated by 300%, indicating a potential recovery following recent events. However, the current price remains 1,287% down from its all-time high of $8.05 in June 2021. Given this, the price dynamics suggest that the token is still in a recovery phase and has not yet reached its previous levels.
The 300% surge in the Celsius token following the $2.5 billion payout to creditors suggests a potential return of confidence in the cryptocurrency. Nevertheless, there is still a significant gap to its all-time high, which will require time and further actions to bridge.
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