According to ChainCatcher, Celsius Network filed an appeal on December 31, challenging Judge John Dorsey's decision to dismiss its $2 billion defamation claim against FTX. The appeal is currently set for consideration in the district court, marking the latest development in the ongoing legal confrontation between the two embattled cryptocurrency companies.
This appeal stems from Celsius's claim that defamatory statements made by FTX executives, employees, and their affiliates negatively impacted its company's reputation and financial health, accelerating its bankruptcy in July 2022. Celsius contends that FTX's public statements undermined customer confidence in its services, leading customers to withdraw funds en masse, ultimately pushing the platform toward bankruptcy.
According to court documents, Celsius initially filed a claim for $2 billion, citing that FTX insiders spread 'unverified and disparaging statements.' However, FTX rejected this claim, arguing that Celsius's assertions lacked sufficient evidence and did not fall within the scope of bankruptcy claims.
In December, more than a year after the initial claim, Celsius amended its application, reducing the claim amount to $444 million. The amended claim shifted its focus to priority transfers, asserting that certain payments made before FTX's bankruptcy should be reclaimed. However, Judge Dorsey dismissed both the original and amended lawsuits on procedural grounds.