- Celsius token value increased by over 300% after $2.5 billion was repaid to creditors.
- The repayment covered 84% of owed assets, benefiting over 250,000 creditors of Celsius.
- Despite the surge, the token remains 1,287% below its June 2021 peak of $8.05.
The Celsius Network’s native token saw a sharp increase of more than 300% over the past month following the company’s efforts to repay a large portion of its creditors. As of August 26, the bankrupt crypto lender completed repayments of around $2.53 billion, benefiting over 251,000 creditors. At the time of the filing, Celsius (CEL) was valued at $0.16. By September 23, its value had surged to $0.65, although it traded at approximately $0.58 during publication.
Celsius Repays Majority of Creditors
The August court filing revealed that Celsius had returned around 84% of the $3 billion owed to its creditors. However, a notable number of eligible creditors have yet to claim their funds, with many holding relatively small amounts. Over 64,000 creditors are owed less than $100, while another 41,000 have claims between $100 and $1,000 in cryptocurrency.
The filing suggested that the low balances may have deterred creditors from taking the steps necessary to claim their assets, as they might find the process too cumbersome for smaller sums. Celsius has already processed millions of distributions in an attempt to fulfill its obligations.
Celsius’s Bankruptcy Aftermath
Celsius initially filed for bankruptcy protection under Chapter 11 in July 2022 after facing significant financial difficulties. The company later faced fines amounting to $4.7 billion from the U.S. Federal Trade Commission, although it expressed satisfaction with the resolutions reached with U.S. regulators.
Meanwhile, Alex Mashinsky, Celsius’s former CEO, was arrested and charged with financial fraud. Prosecutors accused him of misleading customers and manipulating the value of the CEL token during the company’s operation.
