CEL’s +30% Rally Aims to Calm Turmoil, but is $50M Petition the Medicine?

Distressed cryptocurrency lending company Celsius appears immersed in solving its long-standing woes after going bankrupt.

Recently, on September 1, the firm introduced a motion to the insolvent court in NY’s Southern District. That motion wants to allow its client to withdraw a portion of their assets.

According to the appeal, the lending firm confirmed having client assets worth around $210 million in its Withhold and Custodian accounts

Moreover, Celsius added that the assets weren’t part of ‘borrowed assets’ or ‘earn interest’ that cleared its road to insolvency. Meanwhile, this could be another move targeted at helping Celsius clients worry less.

An Illegitimate Bank?

While explaining its motion, Celsius revealed that more than 22.5K customers held transferred custody tokens on its site.

More than 15.6K users had pure custody tokens worth approximately $43.87 million. Moreover, 5K users boasted digital assets worth $15.33 million in Withhold accounts.

Also, the firm revealed users’ properties and didn’t account for any portion of its insolvency estates. The filing stated that debtors didn’t plan to accept PWA (Pure Withhold Assets) (at first glance) since they have no service usage for the assets.

The motion’s announcement on Twitter triggered mixed responses. While some investors saw a move for the company to alleviate its issues, others believed Celsius was lying. BnkToTheFuture CEO Simon Dixon presented the most notable comment.

The experienced investor stated that Celsius ran line an illegal bank. He concluded that because cryptocurrency lending firms trusted earned funds, besides withdrawal proposals, were theirs.

Hours later, Dixon added that the firm might lack funds in October and Celsius was misguiding its clients. Nevertheless, the company’s native coin, CEL, appears to have perceived the update personally.

CEL Reacts

Coinmarketcap data shows CEL flourished recently, surging more than 30% on September 1’s final 24 hours. While publishing this news, the alternative token changed hands near $1.52.

Besides the price uptick, CEL has its volume surging by 112.91%. Santiment data showed volume stood at $20.3 million. The metric stood at $10.11 million on September 1.

Meanwhile, the court set October 6 for hearing the motion. Some clients believe approval will open the gates for full recoveries. CEL seemed to enjoy impressive momentum. Nevertheless, nothing supports concrete and extended rallies.

Editorial credit: FellowNeko / shutterstock.com

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