The CEL token shot up 50% after yesterday, Bankrupt Cryptocurrency Lender Celsius Network Requested Court Permission to Release $50 Million in Crypto protected in calls «custody accounts» designed to store digital assets.
A full hearing on the application is scheduled for Oct. 6, according to court documents.
There are 2 sides among those affected
The roughly $50 million that Celsius seeks to return is now just a fraction of the more than $200 million trapped in escrow accounts. on the platform and the move highlights a split among the many thousands of users burned by the company’s bankruptcy.
Those who deposited cryptocurrencies with the aim of earning interest on their holdings, i.e. in the form of (staking) transferred ownership of the coins to Celsius, according to the company, while those who only stored their assets on the platform technically retained title to the coins.
Celsius Network News
Celsius has $210 million in assets in escrow program accounts and $15 million in holding accounts, according to reports. Celsius has thus expressed its commitment to users claiming that customers own these cryptocurrencies, not the company.
Celsius had 1.7 million users and $11.8 million in digital assets under management in May. And its staking services provided users with attractive offers of up to 18% returns on their cryptocurrency holdings.
However, Celsius lent approximately $75 million to loan servicing Three Arrow Capital (3AC), which collapsed with the fall of Terra (LUNA). With 3AC unable to repay loans and fearful investors withdrawing funds, Celsius began to face a liquidity crisis.
Celsius’s CEL token has fallen from its all-time high of $8 last June. The cryptocurrency fell after the fall of LUNA and the subsequent financial problems of the company. But he went up more than 50% after Celsius said he wanted to unlock funds for a portion of his clients.