A month following the firm’s payment of $2.5 billion to creditors, the Celsius token experienced a 300% increase, indicating a robust recovery in the wake of its bankruptcy settlement.
The native token of the Celsius Network experienced a 300% increase in value within a month of the implementation of a $2.5 billion repayment scheme for over 250,000 creditors.
The insolvent digital asset lender had repaid approximately $2.53 billion to 251,000 creditors, according to a court filing on Aug. 26. The Celsius (CEL) token was trading at $0.16 at the time, according to Cointelegraph Markets Pro data.
The token’s price reached $0.65 on September 23, representing a 300% increase since August 26. At the time of publication, CEL was trading at approximately $0.58.
Although there was some recovery in the token’s price, it remains 1,287% lower than its all-time peak of $8.05 in June 2021.
Celsius repaid creditors an estimated 84% of the assets owed to them, which amounted to $3 billion, on August 26. Although the majority of creditors have already been compensated, not all those who are eligible for payment are seeking to claim their digital assets due to the fact that some of the amounts owed are negligible.
The filing stated that 64,000 of the remaining creditors who have not yet claimed their crypto have assets worth less than $100. Concurrently, 41,000 individuals are overdue between $100 and $1,000 in cryptocurrency.
The filing stated that the minor quantities owed to numerous creditors may be the reason they have not claimed their funds.
The bankruptcy administrator also stated in the filing that it had already attempted to distribute over 2.7 million dollars to eligible creditors.
Celsius declared bankruptcy in July 2022. In an email to its subscribers, the organization disclosed that it had submitted petitions for Chapter 11 reorganization. Several days had passed since the platform employed bankruptcy attorneys.
The United States Federal Trade Commission imposed penalties of up to $4.7 billion as a result of the bankruptcy. The corporation expressed satisfaction with the resolutions it achieved with a variety of regulatory agencies in the United States.
Prosecutors also apprehended the former CEO of the company, Alex Mashinsky, and charged him with allegations of financial fraud, misleading consumers, and manipulating the token’s price.
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