The company, which had previously claimed that users had relinquished legal ownership of their cryptocurrency, is now willing to refund around $50 million to customers, and the decision has caused the CEL token network to appreciate.
![](https://todayincrypto.com/wp-content/uploads/2022/09/img_631273d3b817a.jpg)
Traders’ assessments of Celsius Network, CEL’s parent company, release some of the locked cash to its clients caused CEL’s price to skyrocket by about 50%.
CEL soared to an intraday high of $1.67 per token on Sept. 2 after hitting lows of $1.15 the day prior. Lower trading volumes, however, along with the token’s quick surge point to a lack of investor confidence in continued upward movement.
![](https://todayincrypto.com/wp-content/uploads/2022/09/img_631273d443259.png)
Celsius Network requested that its clients with “certain Custody and Withhold accounts should be able to withdraw the amount of digital assets owed to them” in a motion filed with the Bankruptcy Court.
Celsius was able to thrive with the help of its customers’ cryptocurrency deposits, which were used to fund loans on a wider scale in the cryptocurrency lending market.
![](https://todayincrypto.com/wp-content/uploads/2022/09/img_631273d576e5d.gif)
However, the year’s market slump left a $2.85 billion hole in Celsius’s balance sheet, forcing the company to freeze its clients’ accounts, locking billions of dollars across more than a million accounts. Celsius submitted a Chapter 11 bankruptcy filing in July.
It’s encouraging to see Celsius Network be open to returning some Custody monies to customers. The $50 million provided, however, pales in comparison to the $210 million that the corporation actually owns.
The value of the cryptocurrency assets in Celsius’ interest-bearing Earn accounts was nearly $4.2 billion as of July 10, according to the court records. In other words, with unfavorable fundamentals still looming over the Celsius market, the 50% price rise in CEL now appears overextended.