Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Celsius Appeals Denial of $444 Million Claim in FTX Case

Celsius Appeals Denial of $444 Million Claim in FTX Case

CryptotimesCryptotimes2025/01/03 01:22
By:Ronak KumarDhara Chavda

Judge Dorsey dismissed Celsius’s two claims, citing procedural issues and lack of proper support for both cases.

Celsius Network is challenging a court ruling that denied its $444 million claim in the ongoing FTX bankruptcy case. On Tuesday, the defunct crypto lender filed a notice of appeal, seeking to overturn the decision made by Judge John Dorsey in December.

Celsius has been fighting to recover damages from FTX since 2024, initially seeking $2 billion. The claim stemmed from accusations that FTX’s “unsubstantiated and disparaging statements” played a role in the collapse of Celsius.

Celsius Appeals Denial of $444 Million Claim in FTX Case image 0 Celsius Appeals Denial of $444 Million Claim in FTX Case image 1 Source: X

Later, the claim was revised , focusing on what it called “preferential transfers” that allegedly favored certain creditors. Despite these revisions, Judge Dorsey ruled in December that the claims were insufficient. 

He found that Celsius failed to properly support its preferential transfer investigation and dismissed the amended claims due to procedural issues.

In the ruling, the judge also highlighted that Celsius had filed the amendments without proper permission and did not provide an adequate explanation for the delay. He noted that allowing the changes could disrupt FTX’s ongoing reorganization efforts.

This legal battle comes after Celsius began massive payouts to creditors in 2023. The company distributed over $2.5 billion to about 251,000 creditors, covering a large portion of the claims. 

However, the controversy around Celsius’s founder, Alex Mashinsky, who pleaded guilty to fraud charges, adds another layer to the company’s struggles. Mashinsky faces a potential 20-year prison sentence, with his sentencing set for April 2025.

Follow The Crypto Times on Google News to Stay Updated!
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

SEC acknowledges spot Solana ETF filings from 21Shares, Bitwise, Canary and VanEck

Cboe BZX Exchange filed proposed rule change forms to list and trade shares of spot Solana ETFs from would-be issuers 21Shares, Bitwise, VanEck and Canary.Franklin Templeton also appears to be poised to join the Solana ETF fray after the firm filed documents in Delaware to register the Franklin Solana Trust.

The Block2025/02/11 21:22

Another State in the US Prepares a Bill to Buy Bitcoin! Here Are the Details

North Carolina lawmakers have marked the state’s entry into a growing movement among U.S. states investigating crypto investments.

Bitcoinsistemi2025/02/11 20:55