Celsius Files New Appeal To Claim FTX Damages
Celsius has filed an appeal against a court ruling that dismissed its damage claims against FTX in its bankruptcy case. The crypto lending platform initially sought $2 billion in damages, alleging that disparaging statements by FTX executives led to its downfall.
The claim was later revised to $444 million, focusing on preferential transfers that favored some creditors. In December, Judge Dorsey rejected both claims, ruling that the original proofs of claim were insufficient.
Clarity Is Key
On December 31st, Mohsin Meghji, the litigation administrator for Celsius, filed a notice of appeal regarding Judge Dorsey and their decision. Sunil Kavuri, an FTX creditor activist, explained that Celsius filed a $2 billion disparagement claim before the deadline, then submitted an amended $444 million claim for preferential transfers after the deadline.
The court ruled that the amended claims were improper because they were not filed with permission, lacked a clear connection to the original claims, and would hinder restructuring efforts for FTX. Celsius countered that the original claims were sufficient to notify FTX of potential issues.
Plenty To Go Around
An August filing revealed that Celsius had repaid $2.53 billion to around 250,000 creditors, covering 84% of the debt owed. In November, it also announced plans to distribute another $127 million to creditors through its litigation recovery fund. Meanwhile, CEL surged 350% in September but has since dropped below $0.20, down 97.5% compared to its peak.
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