Celsius is taking action against a court decision that blocked its $444 million claim against FTX in its ongoing bankruptcy case. The crypto lender had initially sought $2 billion in damages, accusing FTX officers of making disparaging remarks that contributed to its downfall. However, after narrowing the claim, Celsius focused on “preferential transfers,” demanding the return of $444 million from FTX entities.
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Court Ruling Sparks Appeal
In December, Judge John T. Dorsey dismissed both of Celsius’ claims, citing procedural issues. The court found that the lender’s original claim lacked sufficient details, and its amended claim filed after the deadline was improperly handled. Celsius now plans to appeal the decision, asserting that the original proofs of claim were adequate to notify FTX of the alleged issues.
Celsius’ Financial Struggles Continue
While the Celsius token surged by 350% following a $2.5 billion repayment to creditors, it has since seen a dramatic decline, dropping over 97% from its peak. With $2.53 billion repaid to 250,000 creditors, Celsius continues to face challenges in its recovery efforts. According to CoinDesk, the firm is determined to recover as much as possible for its creditors.
