5 months ago
Celsius Network filed a announcement of entreaty connected Dec. 31, contesting Judge John Dorsey’s determination to disallow the bankrupt crypto lender’s $2 cardinal disparagement claim against defunct crypto speech FTX.
The appeal, present slated for reappraisal successful the District Court, marks the latest improvement successful the ongoing ineligible confrontation betwixt the 2 embattled crypto firms.
Allegations of disparagement
The entreaty stems from Celsius’ assertions that defamatory statements made by FTX executives, employees, and affiliates negatively impacted the company’s estimation and fiscal health, allegedly accelerating its bankruptcy successful July 2022.
Celsius contended that FTX’s nationalist comments reduced assurance successful its services, driving customers to retreat funds and yet pushing the level toward insolvency.
According to tribunal filings, Celsius initially filed a $2 cardinal assertion citing “unsubstantiated and disparaging statements” circulated by FTX insiders. However, FTX resisted the claim, arguing that Celsius’ assertions lacked capable grounds and fell extracurricular the scope of bankruptcy claims.
Amended claim
In December, much than a twelvemonth aft the archetypal claim, Celsius amended its filing, reducing the requested magnitude to $444 million. This revised assertion shifted absorption to preferential transfers, alleging that definite payments made to FTX anterior to its bankruptcy should beryllium clawed back.
However, Judge Dorsey disallowed some the archetypal and amended claims, citing procedural deficiencies.
The ruling highlighted that Celsius failed to question tribunal support for the precocious amendment, yet sustaining FTX’s objection. Dorsey’s decision emphasized that the amended assertion could not bypass procedural requirements, careless of the substantive quality of the allegations.
The lawsuit highlights the fierce ineligible battles erupting crossed the crypto assemblage arsenic firms embroiled successful bankruptcy proceedings effort to retrieve assets and mitigate losses. Celsius’ pursuit of claims against FTX reflects a broader signifier of creditors and counterparties vying for leverage successful ongoing bankruptcy negotiations.
The station Celsius Network appeals $2B disparagement assertion rejection against FTX appeared archetypal connected CryptoSlate.
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