Celsius Reimburses Creditors $2.5B Amid Bankruptcy Restructuring
Celsius Network has reimbursed creditors $2.5 billion, boosting the CEL token's value significantly as the company prepares for a potential exit from bankruptcy in 2024.
Highlights:
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CEL token value skyrockets 300% following reimbursements.
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Over 251,000 creditors compensated as Celsius plans exit.
Celsius Network, the once-prominent cryptocurrency lender that filed for bankruptcy in July 2022, has made significant strides in its restructuring efforts. Recent reports indicate that the company has reimbursed creditors approximately $2.5 billion as part of its bankruptcy proceedings, distributing funds to over 251,000 creditors across 165 countries.
This payout comes as Celsius prepares to exit bankruptcy by early 2024, following the approval of its reorganization plan by a New York court.
The repayment process involved a mix of liquid cryptocurrency and cash, with many creditors receiving their claims in two installments. Notably, retail customers holding the CEL token are set to receive about 25 cents on the dollar for their tokens, which has contributed to a remarkable surge in the token's value—rising four-fold in recent weeks.
The CEL token's price increased from $0.16 to around $0.56, reflecting a 300% rise following these developments.
Celsius's collapse was one of the most notable events in the crypto industry during 2022, triggered by broader market turmoil and regulatory scrutiny. The company's former CEO, Alex Mashinsky, faces serious legal challenges related to fraud allegations. As Celsius restructures, it plans to pivot towards mining operations under a new entity, aiming to enhance recovery efforts for its creditors and restore some stability to its operations.
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