Celsius Fights for Compensation from FTX
Celsius Network, the defunct crypto lending platform, has filed an appeal after Judge John Dorsey rejected its $444 million damage claim against FTX. This legal battle is part of the ongoing FTX bankruptcy proceedings, aimed at addressing losses from the collapse of the crypto exchange led by Sam Bankman-Fried.
Original $2 Billion Claim Reduced to $444 Million
Initially, Celsius sought up to $2 billion in damages, alleging that misleading statements about its financial stability made by FTX officials accelerated its collapse in 2022.
Later, Celsius reduced its claim to $444 million, focusing on so-called “preferential transfers,” which could prioritize repayments to specific creditors.
FTX and Court Reject Celsius’ Claims
FTX debtors argued that the evidence provided by Celsius was insufficient to support its claim. They also noted that the amended $444 million claim was submitted too late.
In December 2023, Judge Dorsey dismissed both the original $2 billion claim and the amended $444 million version, citing insufficient evidence. He added that Celsius had not requested permission to amend its claims or provided an explanation for the delay in submitting them.
Celsius Faces Additional Legal Challenges
In November 2024, Celsius pledged to distribute $127 million to creditors from its litigation recovery account. In the same month, a New York federal judge denied former Celsius CEO Alex Mashinsky’s attempt to dismiss fraud charges.
Mashinsky faces allegations of manipulating the price of Celsius’ native token, CEL, and fraud linked to the company’s collapse. If convicted, he could face up to 115 years in prison.
Conclusion
Celsius Network continues to pursue compensation from FTX, emphasizing disputes over evidence and timing. Meanwhile, the company and its former executives face significant legal challenges, complicating efforts to rebuild trust and achieve fair settlements with creditors.

#LegalBattle , #Celsius , #FTX , #CryptoNewss , #bankruptcy

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