Business

Celsius to appeal order that disallowed its $444M claim against FTX

Published

on

Celsius Network, the bankrupt cryptocurrency lending platform, has filed an appeal against a court ruling that dismissed its $444 million claim against the defunct exchange FTX. The original claim, which sought $2 billion in damages, alleged that disparaging statements made by FTX officials exacerbated Celsius’s financial decline. This claim was later amended to focus on “preferential transfers” favoring certain creditors, reducing the sought amount to $444 million.

In December 2024, Judge John T. Dorsey disallowed both the initial and amended claims, citing procedural deficiencies. The court found that Celsius’s original proof of claim lacked sufficient detail, containing only a single sentence about investigating possible preference claims. Additionally, the amended claim was filed without seeking proper leave and was deemed unrelated to the original filing, with no adequate explanation for the delay.

On December 31, 2024, Celsius’s litigation administrator, Mohsin Meghji, submitted a notice of appeal challenging Judge Dorsey’s memorandum opinion and order. Celsius contends that its original proof of claim met the minimum requirements of the Bankruptcy Code and provided sufficient notice to FTX debtors regarding the alleged avoidance claims.

This legal dispute unfolds amid Celsius’s ongoing efforts to repay creditors. As of August 2024, the company had repaid approximately $2.53 billion to around 250,000 creditors, representing about 84% of the assets owed. In late November, Celsius announced plans to distribute an additional $127 million to creditors from its litigation recovery account.

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

Copyright © 2021 cryptonews.lk