Celsius Files Appeal Challenging Decision Denying $444M Claim Against FTX

Defunct crypto lender Celsius filed an appeal on Tuesday, challenging a judge’s decision to deny their claims for damages against FTX as part of their ongoing bankruptcy proceedings.

Since early 2024, Celsius has been seeking to recover $2 billion from FTX, citing “unsubstantiated and disparaging statements” made by FTX officers that they believe accelerated their collapse. Later, the claim was revised to focus on “preferential transfers,” alleging that certain creditors were favored. The updated claim was reduced to $444 million.

However, in December, Judge John Dorsey dismissed both claims, ruling that the original proof of claim by Celsius only briefly mentioned a potential investigation into preferential transfers, which was not enough to support the claim.

The court also deemed Celsius’s amended claims, filed in July 2024, as improper. Celsius did not seek permission to amend, the amendments were not sufficiently related to the original claims, there was no explanation for the delay in filing, and the changes would disrupt FTX’s efforts to reorganize.