Celsius’ native token holders have failed in an attempt that the CEL token should be valued at the trading price of $0.80, the day the crypto lender filed for bankruptcy in July 2022. According to a ruling by the New York bankruptcy court on Thursday, the transaction prices were not accurate because the market for the CEL had been manipulated, and the court could have valued it against token holders at a lower value or at the zero price that shareholders could expect in the event of bankruptcy, as the company argued.

Two token holders, Santos Caceres and Otis Davis, requested from the court the right to participate in bankruptcy negotiations through a special committee of CEL holders, but Judge Martin Glenn denied this request.

“What is disclosed in these petitions, this order, or the hearing does not constitute a determination as to whether crypto tokens or transactions involving crypto tokens should be considered securities under federal securities laws,” said Glenn, the regulatory agency for the regulatory status of CEL and other cryptoassets. He tried to avoid interfering in a heated dispute with the Securities and Exchange Commission.

Celsius management suggested valuing CEL at $0.25, as they aim to terminate the business of the company, accelerate the sale to crypto consortium Fahrenheit, and return funds to creditors. This valuation was an upgrade from the previous $0.20 that appeared in a disclosure statement regarding the sale to Fahrenheit approved by Glenn last week.

In January, Shoba Pillay, an independent reviewer appointed by Glenn, stated that the CEL market was largely self-created, and it was mainly for internal beneficiaries such as then-CEO Alex Mashinsky. Regulators have since arrested Mashinsky on charges including market manipulation, but pleaded not guilty.

Creditors have one month to evaluate and vote on the sales plan.