Celsius token rose 300% in a month after paying $2.5B to creditors
The Celsius Network's native token is up more than 300% in a month after launching a $2.5 billion payment method for more than 250,000 lenders.
In the year On August 26, a court filing showed that the bankrupt digital asset lender had paid $2.53 billion to 251,000 creditors. According to Cointelegraph Markets Pro data, the Celsius (CEL) token was trading at $0.16 that day.
On September 23, the token's price reached $0.65, representing a 300% price appreciation. The token currently hovers around $0.58.
Celsius Network 30-day price chart. Source: Cointelegraph Markets Pro
While the token's price has shown some recovery, it is still down 1,287% from its all-time high of $8.05 in June 2021.
Celsius will distribute $2.5 billion to creditors
In the year On August 26, Celsius paid off 84 percent of its debt, totaling $3 billion. While most creditors are already paid, not all of those eligible for payment are looking to claim their digital assets because some debts are small.
Of the remaining creditors who have yet to claim their cryptos, about 64,000 have less than $100 in assets to claim, the filing said. Meanwhile, 41,000 owe between $100 and $1,000 in crypto.
According to the records, the small amount offered to many lenders may be the reason why they have not claimed their money. “They may not have the incentive to take the necessary steps to successfully request distribution,” the filing wrote.
The bankruptcy trustee also said in the filing that he tried to make distributions to more than 2.7 million eligible creditors.
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The Celsius saga sees an end
In July 2022, Celsius filed for bankruptcy. An email to consumers said the company has filed for Chapter 11 reorganization. The email comes days after the forum hired lawyers specializing in bankruptcy.
The loss resulted in a fine of up to 4.7 billion dollars with the United States Federal Trade Commission. The company said it was pleased with the decision it reached with various regulatory agencies in the US.
Meanwhile, the company's former CEO, Alex Mashinsky, has been arrested and charged by prosecutors with money laundering, misleading customers and manipulating token prices.
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