CEL’s price rose by 300% on September 23, close to a month since Celsius announced it repaid $2.5 billion to 251,000 creditors.
Celsius Network’s native token, CEL, surged by 300% just a month after the bankrupt company undertook a massive repayment process. It settled over $2.5 billion to its creditors in August.
CEL traded at around $0.16 the day Celsius announced its repayment process had concluded. The token’s price began rallying in early September and hit $0.68 on September 23, demonstrating a surge of over 300% since August 26. Its price has dropped to about $0.48 at the time of writing. While the price rise seems interesting, it is nowhere close to CEL’s all-time high (ATH) of over $8 recorded in 2021.
Celsius Repaid 251,000 Users in August
Celsius reported that it paid back $2.53 billion to 251,000 users on August 26 in a court filing. The company owed a total of $3 billion, leaving the remainder to be repaid to at least 121,000 creditors. While the deposits are ready for them to collect, Celsius’ bankruptcy estate mentioned not all creditors want to take action to reunite with their funds, considering most of the 121,000 remaining users are owed small amounts. Due to that, they are not incentivized to collect what belongs to them.
Around 64,000 creditors are owed sums between $100 and $1,000. 41,000 creditors have claims to amounts lesser than $100. “All in all, the Plan Administrator has attempted more than 2.7 million distributions in total,” Celsius’ court filing read.
Celsius filed for bankruptcy in 2022 due to financial mismanagement and exposure to overly risky investments that caused the company to crash due to that bear cycle. Beyond repayments, it paid $4.7 billion in fines to the Commodities Futures Trading Commission (CFTC). Its CEO, Alex Mashinsky, was arrested and charged. His trial was set to begin last week but has been delayed.
