As a seasoned researcher with a keen eye for market trends and a knack for navigating through the complexities of bankruptcy proceedings, I find myself both intrigued and cautious about the recent surge in Celsius Network’s native token, CEL. The 300% increase is undeniably impressive, but it’s important to remember that this is still a far cry from its all-time high.
In the last month, the native token of the Celsius Network, called CEL, has experienced a significant increase of more than 300%. This surge came after they successfully completed a $2.5 billion debt repayment plan for their creditors.
On August 26, it was disclosed through court documents that the insolvent digital asset lending company had managed to disburse around 2.53 billion dollars to over a quarter-million creditors. When the repayment occurred, Centaur Exchange Lending (CEL) was valued at 0.16 dollars per unit.
On September 23rd, the token’s price soared to $0.65, which signifies a notable 300% rise. Despite this considerable surge, CEL is still significantly lower than its peak of $8.05 achieved in June 2021.
Even though the larger debts were repaid successfully, a significant number of smaller creditors, particularly those who are owed less than a thousand dollars, have not yet recovered their money. The filing revealed that approximately 64,000 creditors fit into this category, with around 41,000 owing amounts ranging from $100 to $1,000.
The bankruptcy manager proposed that the intricacy of the claim procedure and the modest values at stake could be discouraging these creditors from initiating any actions.
In simple terms, Celsius, a company that filed for bankruptcy in July 2022, has since been grappling with a sequence of legal troubles. The U.S. Federal Trade Commission has threatened to impose fines amounting to as much as $4.7 billion on them. Additionally, the former CEO of Celsius, Alex Mashinsky, was detained due to allegations of financial misconduct.
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2024-09-24 15:16