The price of Celsius Network token CEL surged by more than 12% on Saturday afternoon, ranking among the top gainers of the day as Bitcoin continues to range near $30k. CEL traded to $0.18 as news that Celsius had reached two key settlements related to its bankruptcy proceedings and potential reimbursement of customer assets drove traders.
The settlements with the Official Committee of Unsecured Creditors over a class claim in which account holders accused the crypto platform’s former management of fraud and misrepresentation and other actions that allegedly harmed them, as well as a resolution that could see customers with interest-bearing Earn accounts receive a percentage of their money in crypto assets and be eligible for shares of the new company after bankruptcy ends, seem to have encouraged traders.
The court document states that around 30,000 account holders lodged total claims of $78.2 billion against the collapsed crypto lender. The management team has agreed to a settlement with the class, increasing customer’s reimbursements by 5%.
Account holders have the option of not taking this deal, but the alternative could see delayed distribution and potentially reduced recoveries due to the huge expenses associated with the proceedings. US Judge Martin Glenn will examine the resolutions on August 10.
It is expected that if all goes well, customers may be able to receive their assets by the end of the year.
