Defunct crypto lending platform Celsius is seeking to reverse the judgment that denied its $444 million in claims over the FTX lawsuit.
According to the platform’s notice of appeal, it is seeking to appeal against the judgment that denied Celsius its claims for damages in the FTX lawsuit.
The new appeal comes as a crucial moment for Celsius as it plans its trajectory over the bankruptcy process while taking various steps to recover its funds.
What is Celsius Claiming in the New Appeal?
Celsius first requested $2 billion in damages, accusing FTX managers of making damaging remarks that exacerbated its financial problems.
However, the allegations and amount were later revised and were set at $444 million. The platform claims that FTX gave some creditors “preferential transfers” at the expense of others.
Since the original claims were too nebulous and did not satisfy the standards to continue further action, the court had decided against Celsius previously. Additionally, the court determined that the firm’s July 2024 amended claims were incorrect.
Celsius’ $2.5 Billion in Distribution to Creditors
The new appeal comes against the backdrop of Celsius distributing a significant amount to creditors since 2022. Celsius Network’s bankruptcy process, which started in July 2022, has seen the successful distribution of more than $2.5 billion to more than 250,000 creditors.
About 93% of the qualifying payments that have been disbursed as part of the court-approved restructuring plan are represented by this sum.
Celsius’ Bankruptcy Still Stands As Challenge For Market
After the crypto markets crashed in 2022, the struggling lending platform, which at its height managed $25 billion in assets for 1.7 million members, declared bankruptcy and was shoved with lawsuits eventually.
Only $13 million worth of cryptocurrency is still on the chain after Celsius began transferring assets totaling over $3 billion to its creditors in January of 2024.
With this distribution effort, Celsius’ bankruptcy—one of the biggest in the cryptocurrency industry—officially came to an end. However, the bankruptcy is still a tainted image for many in the industry.
For Celsius’ creditors, who have suffered major losses but at least some recovery, this conclusion ends a protracted and agonizing ordeal. Now that the bankruptcy case is over, attention will turn to how the cryptocurrency sector may regain peoples confidence after high-profile failures like Celsius and others.
Additionally, investors are keeping a close eye on how these cases are developing, to analyze the recovery of funds for the platform.