CEL Rallies After Celsius Asks Court to Let it Return USD 50m+ in Crypto

Source: Adobe / Fellow Neko

Developments emerging from Centigrade The bankruptcy process pushed the failed cryptocurrency lender’s CEL token above the USD 1.50 threshold, making the coin the best of the day – and this week – in the top 100 coins.

At 07:32 UTC, CEL is trading at around USD 1.53 and is up 33% in one day and 25% in a week.

After filing for bankruptcy in the summer, Celsius was embroiled in lengthy legal disputes with a bankruptcy court in New York’s Southern District. Eventually, the court will determine the fate of the company’s assets and the dozens of creditors waiting to see what will become of the funds they have tied into the Celsius programs.

The last hearing was held yesterday and took place over three hours. During the proceedings, the parties discussed whether or not they should seal creditors information and discussed the type of account holders who might be allowed to make withdrawals. Celsius, meanwhile, has asked the court to let him honor his debts with a tranche of his clients in custody.

The company wants permission to issue tokens worth around USD 50 million – USD 56 million to certain depository account holders, although there seems to be some discussion as to which customers would be eligible to make withdrawals.

The Celsius Terms and Conditions state that the tokens in the Earn and Borrow programs belong to the Celsius property under the terms of service. And that would create a possible wrinkle for some custody customers: Celsius says it will need to run analyzes to figure out whether custody customers who have moved funds from Earn and Borrow programs to custodial accounts are eligible for withdrawals. About $ 200 million of client funds are still in Celsius deposits, according to corporate filings previously filed in court.

But on Twitter, the company indicated that his latest motion was one more sign to come.

The company wrote that while its motion to pay up to $ 56 million in funds “would only apply to a specific group of customers,” it is “preparing to address issues relating to all customers as we move forward.”

Celsius added:

“We continue to pursue all available avenues as quickly as possible.”

The company has called its release proposal “phase one” of its efforts on this front. The motion will be considered in a special hearing on Sept. 14, the company wrote. However, the legal acts took note of a full hearing to be held on 6 October.
____
Find out more:
– Bankrupt Cryptocurrency Lender Celsius Strikes Back
– Celsius Saga continues: new documents reveal “delusional” plan for “autonomous reorganization,” says lawyer

– How to spot the next Celsius before it’s too late

– Because Celsius and Voyager were more like uninsured banks
– Anger, worry and doubt: Celsius customers “pray” for the return of their cryptocurrencies

Leave a Comment