Celsius, a crypto lending platform, has decided to challenge a court decision that dismissed its attempt to recover funds from the cryptocurrency exchange FTX.
Celsius initially accused FTX officials of making harmful statements that worsened its financial troubles and demanded $2 billion in damages.
This claim was later revised, focusing instead on $444 million in transactions Celsius argued gave some creditors “preferential transfers” at the expense of others.
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An FTX creditor advocate, Sunil Kavuri, posted on X, explaining that Celsius filed a claim over alleged reputational harm before the court’s deadline but only added the $444 million claim related to payments afterward.
Judge Dorsey ruled against Celsius, stating that the initial claims were too vague and did not meet the requirements to pursue further action.
The court also found that the updated claims filed months later were unrelated to the original ones, submitted too late, and lacked justification for the delay. Moreover, the judge noted that allowing the changes could interfere with FTX’s ongoing restructuring efforts.
On December 31, 2024, Celsius’s litigation administrator, Mohsin Meghji, submitted an appeal to challenge the court’s ruling. Celsius argued that its original filing provided enough notice to support its later claims, even if the details were expanded after the deadline.
While Celsius continues its efforts to recover funds from FTX, former FTX co-founder Ryan Salame’s prison sentence has been cut short. What happened? Read the full story.
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