Token holders of Celsius’ native token, CEL, have failed in their bid to argue that the token should be valued at $0.80, the trading price on the day the crypto lender filed for bankruptcy in July 2022. According to a judgment issued by New York bankruptcy court on Thursday, the court could even have valued it at a lower or zero price. Two token holders, Santos Caceres and Otis Davis, had lobbied the court to be able to take part in the bankruptcy negotiations via a special committee of CEL holders, which Judge Martin Glenn also rejected.
Nothing in the motions, this order, or announced at the hearing, constitutes a finding under the federal securities laws as to whether crypto tokens or transactions involving crypto tokens are securities, Glenn said. Celsius’ management have proposed to value CEL at $0.25, as they seek to wind up the company’s affairs, hasten a sale to crypto consortium Fahrenheit, and return funds to creditors. Creditors have one month to consider and vote on the sale plan.