According to FTX creditor activists, defunct crypto lender Celsius Network has filed an appeal after Judge John Dorsey dismissed the company’s lawsuit seeking around $444 million in FTX damages.
Court documents showed that the crypto lending platform has appealed Judge John Dorsey’s ruling denying Celsius’ claims for FTX damages worth around $444 million. The lawsuit is part of FTX’s ongoing bankruptcy proceedings aimed at repaying damages for the failed crypto exchange led by Sam Bankman-Fried.
According to the appeal filed by Celsius Network’s litigation administrator, Mohsin Meghji, Celsius initially filed a claim for damages of up to $2 billion based on “unfounded and derogatory statements” about the company’s balance sheet and financial stability by FTX employees and lawyers The company believes the Celsius collapse will accelerate in 2022.
However, ahead of the deadline, Celsius lowered the claim amount to around $444 million as the crypto lending firm said it would focus on restoring “preferential transfers,” which would prioritize repayments for certain creditors.
According to the document, FTX debtors rejected Celsius’ claims because they believed that the original evidence provided by the firm was insufficient to support the claims. Additionally, the change from $2 billion to $444 million was deemed to have been “submitted late and should not be allowed.”
Celsius argued that the original proof should be sufficient to meet the minimum requirements of the Bankruptcy Code and notify debtors.
Last December, Judge Dorsey dismissed both…
