{"id":5577,"date":"2025-01-03T04:32:35","date_gmt":"2025-01-03T04:32:35","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=5577"},"modified":"2025-01-03T04:32:35","modified_gmt":"2025-01-03T04:32:35","slug":"celsius-fights-back-appeals-court-ruling-against-444m-claim-on-ftx-transfers","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=5577","title":{"rendered":"Celsius Fights Back: Appeals Court Ruling Against $444M Claim on FTX Transfers"},"content":{"rendered":"
\n

The ongoing legal battle between collapsed crypto lending platform Celsius and bankrupt cryptocurrency exchange FTX appears to have now entered another phase.<\/p>\n

Celsius recently filed<\/a> a notice of appeal against Judge John T. Dorsey\u2019s ruling, which \u201cdisallowed its $444 million claim\u201d against FTX<\/a>.<\/p>\n

According to reports, the dispute stems from the collapsed crypto lending platform\u2019s allegations of \u201cpreferential transfers\u201d and \u201cdisparaging remarks\u201d by FTX officers that allegedly accelerated the lending platform\u2019s financial collapse.<\/p>\n

Key Legal Arguments and Court Ruling<\/h2>\n

The legal dispute revolves around the adequacy of Celsius\u2019 initial proofs of claim and the procedural correctness of its amended filings.<\/p>\n

Initially, the collapsed crypto lending platform had sought $2 billion in damages<\/a>, claiming that FTX officers made unsubstantiated and damaging statements about the lending platform\u2019s financial condition.<\/p>\n

\n

Celsius filed a Notice of Appeal against Judge Dorsey\u2019s ruling for FTX debtor<\/p>\n

Elected for Appeal to be heard in the District Court<\/p>\n

Facts
\n1) Celsius Filed a $2bn claim for disparagement before the bar date<\/p>\n

2) Celsius filed a $444m amended claim for a preference claim after bar\u2026 pic.twitter.com\/evaBzMi5Lt<\/a><\/p>\n

\u2014 Sunil (FTX Creditor Champion) (@sunil_trades) January 1, 2025<\/a><\/p>\n<\/blockquote>\n

Although this claim was later revised, focusing instead on \u201cpreferential transfers\u201d totaling $444 million, however, in its original filing, Celsius included only a brief reference to investigating possible preference claims, which the court ruled \u201cinsufficient\u201d to support its allegations.<\/p>\n

When the collapsed crypto lending platform later filed an amended claim focusing on the $444 million in alleged preferential transfers, Judge Dorsey found the amendment \u201cprocedurally improper.\u201d<\/p>\n

\"A<\/p>\n

The court highlighted four key issues with Celsius\u2019 amended claim: it was filed after the bar date without permission, lacked sufficient connection to the original claim, did not justify the delay, and would cause undue prejudice to FTX\u2019s ongoing reorganization process.<\/p>\n

These factors collectively led to the dismissal<\/a> of the collapsed crypto lending platform\u2019 revised claim. In response, Celsius argued that its initial filing should have been sufficient to signal its intentions regarding avoidance claims.<\/p>\n

Furthermore, the company stated that its filings complied with the requirements of the Bankruptcy Code and served as protective measures to ensure the claims remained valid during the legal proceedings.<\/p>\n

Next Steps in the Legal Battle<\/h2>\n

The notice of appeal, filed by Celsius litigation administrator Mohsin Meghji on December 31, signals the company\u2019s intention to continue pursuing its claims against FTX<\/a>.<\/p>\n

The appeals will focus on whether Celsius\u2019 original proofs of claim met the necessary legal standards and whether its amended filings should have been accepted despite the procedural delays.<\/p>\n

FTX creditors, represented by activist Sunil Kavuri, have raised concerns about the legitimacy of Celsius\u2019 claims, noting the significant delay in filing the amended claims<\/a> and the lack of clear procedural adherence.<\/p>\n

It is worth noting that the outcome of this appeal will have significant implications for both bankrupt entities and their respective creditors, as hundreds of millions of dollars are at stake.<\/p>\n

\"The<\/p>\n

Featured image created with DALL-E, Chart from TradingView<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The ongoing legal battle between collapsed crypto lending platform Celsius and bankrupt cryptocurrency exchange FTX appears to have now entered another phase. Celsius recently filed a notice of appeal against Judge John T. Dorsey\u2019s ruling, which \u201cdisallowed its $444 million claim\u201d against FTX. According to reports, the dispute stems from the collapsed crypto lending platform\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-5577","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/5577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5577"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/5577\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}