CEL Coin Surges As Celsius Ask Court To Return $50M Token To Holder.
1 month ago, crypto lender Celsius, filed for a Chapter 11 Bankruptcy, 1 month after halting all withdrawals on its platform.
Celsius has filed a motion to return around $50 million worth of tokens to some custody account holders. It is still not known which of these holders are eligible to make the withdrawals
Customers That Are Eligible For Withdrawals
A group of 64 customers claimed that around $25 million in custody accounts filing a petition to the courts to allow withdrawal of their accounts.
The Celsius Terms & Conditions state that tokens in the Earn and Borrow programs belong to the Celsius estate per the terms of service. Celsius customers argued that customers with custodial accounts still maintain ownership of their crypto assets. Celsius is merely acting as the storage provider. Therefore, these funds belong to the customers, not to Celsius’ estate.
As we continue to focus on maximizing value for all stakeholders, we want to share what we hope to be a positive first step towards meeting the expectations of our community and other important updates from our hearing today.
— Celsius (@CelsiusNetwork) September 1, 2022
“Accordingly, the Debtors believe it is fair and appropriate to permit customers to withdraw those cryptocurrency assets at this time. By this Motion, the Debtors seek authority to permit certain customers to withdraw their cryptocurrency from the Custody Program and Withhold Accounts – in accordance with procedures and other conditions set forth in this Motion.” the filing state.
Celsius said that it will perform analyses to check which customers are eligible for withdrawals.
Surge in CEL Token Price
As the case is ongoing, after the announcement of some investors getting their fund back, price of Celsius token, CEL has surged.
In a span of 1 week, CEL has increased from around $1.16 to currently $1.48. It reached a high of $1.57 on 2nd September 2022 before dropping to around $1.48. For the past 24 hours, its market cap has increased around 27% and trading volume increased around 167%.
For the past day, it has been one of the best performing coins in the market.