As a seasoned crypto investor with years of experience navigating the volatile and dynamic digital asset market, I find myself following the latest developments between Celsius Network and FTX with great interest. Having witnessed the dramatic rise and fall of numerous projects in this space, I can empathize with both parties involved in this legal battle.
Celsius’ initial claim of up to $2 billion against FTX was ambitious, but understandable given the potential damages that could have been caused by unsubstantiated statements made against a competitor. However, their subsequent amendment to $444 million and the subsequent rejection of both claims by Judge Dorsey has left me somewhat skeptical about Celsius’ chances of success in this case.
I believe that Celsius’ legal team should have sought court approval before amending their claim, as the judge rightly pointed out. Additionally, I find it concerning that the content of the amended claims was not remotely related to the original ones and could potentially obstruct FTX’s restructuring plans.
That being said, Celsius has made significant progress in its repayment efforts, distributing billions of dollars in crypto and cash to creditors worldwide. Their latest announcement of an additional $127 million payout from funds recovered through litigation is encouraging, and I hope that this will bring some relief to the many investors who have been waiting for their funds.
In terms of my personal investment strategy, I always prioritize diversification and due diligence when investing in crypto projects. The ongoing legal battle between Celsius and FTX serves as a reminder of the importance of thoroughly researching projects before investing and staying informed about any potential risks or developments.
As for a joke to lighten the mood, I’ll leave you with this: Did you hear about the crypto whale who got stuck in the ocean? He needed a minnow-tow!
Crypto lender Celsius Network, now in bankruptcy, has submitted an appeal contesting a decision by the court which denied their $444 million claim against the shuttered crypto platform FTX.
The pending court review involves an appeal that Celsius has put forth during its continuous legal actions aimed at retrieving funds from FTX.
Celsius’ Initial Claim
As per court records, Celsius initially asserted a potential $2 billion in losses due to FTX. The claim stated that high-ranking FTX personnel made unfounded and damaging remarks about Celsius, which harmed its standing and possibly contributed to its downfall in 2022.
Prior to the deadline in July 2024, the firm revised its claim upwards to $444 million, asserting that the updated claim would concentrate on “transfers preferred” which are claimed to have favored certain creditors at the expense of others.
In December, Judge John Dorsey, who was presiding over the case, dismissed both arguments put forward by Celsius. He highlighted technical issues with their filing documentation, asserting that the submissions did not provide enough concrete evidence to sustain their preference claims.
Judge Dorsey expressed dissatisfaction with Celsius’ revised filing, arguing that it was inappropriate because the company failed to obtain court approval for it. He further pointed out that the new assertions in the amended filing had no connection whatsoever to the initial claims and could potentially hinder FTX’s reorganization strategy.
On December 31st, Mohsin Meghji, representing Celsius’ legal administrator, formally submitted an appeal challenging Judge Dorsey’s verdict. In this submission, Celsius contended that their initial filings adhered to all the necessary conditions of the Bankruptcy Law, despite not providing a comprehensive justification.
The company intends to continue pursuing the case to recover the disputed claim.
Celsius’ Repayment Efforts
Regardless of its legal issues, Celsius has taken significant steps towards paying back its creditors. By August 2024, the company launched a repayment initiative, dispersing approximately $2.5 billion in cryptocurrency and cash to over 250,000 creditors in around 165 countries.
In a court filing last November, Celsius revealed plans to distribute an extra $127 million to creditors. They specified that these funds would come from money they’ve managed to recover through legal actions.
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2025-01-03 07:46