While FTX will soon repay its creditors, having even revealed its reorganization plan, Celsius also judges that it has been harmed by the actions of the exchange led by Sam Bankman-Fried. However, on 2 occasions, the court rejected the claims of the crypto platform which also went through a phase of bankruptcy.
Judging to have been wronged by FTX, Celsius wants its piece of the pie
The Celsius cryptocurrency lending platform appealed 2 court decisions against him on December 31. These orders issued by Judge John T. Dorsey reject claims for compensation of the crypto platform from FTX who promised to repay his creditors very soon.
A few months ago, Celsius demanded nearly $2 billion in damages to FTX for “ derogatory statements » carried out by exchange executives against the principal concerned. Positions which would have accelerated its fall.
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After filing a complaint with the court, it was rejected. The company therefore decided to revise its request to focus on another reason for compensation, “preferential transfers”.
Indeed, Celsius claims that FTX would grant special treatment for some of its creditorsto the detriment of others. It is for this reason that the crypto platform subsequently demanded nearly 450 million dollars damages to the SBF company.
In the end, John T. Dorsey was uncompromising, once again rejecting this request. The judge found that the evidence and arguments put forward by Celsius were clearly insufficient to prove that the declarations of FTX executives harmed him or that the bankrupt exchange had abandoned him to the detriment of other creditors.
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Celsius' situation has improved, but the crypto platform is far from out of the woods
Faced with these 2 rejections, Celsius, with the help of one of its creditors, Mohsin Y. Meghji, decided to appeal the decisions of John T. Dorsey.
In its appeal file, the crypto platform retorts that “ the original proofs of claim were sufficient to warn debtors against alleged cancellation claims and constitute at least sufficient protective proof of claim to meet the requirements of the Bankruptcy Code “.
For Celsius, the compensation requested from FTX is significant. Having gone bankrupt during the summer of 2022the crypto lending platform had a $1.2 billion hole in the $5.5 billion it owed its creditors. To get out of this difficult situation, a restructuring plan was approved by the vast majority of its creditors, forcing the company to reimburse them as quickly as possible.
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In parallel, Celsius filed several lawsuitslike what she is currently doing with FTX. Thus, the cryptocurrency lender attacked Tether, judging that the USDT and Bitcoin (BTC) loan agreements between the two companies had not been respected. Compound, Badger and Bancor have also been targeted by Celsius.
In August, Celsius had reimbursed 2.53 billion dollars to its creditorswhich would correspond with the interests, at 84% of the amount due. In late November, the company said it would soon distribute An additional $127 million from its dispute recovery account.
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Source: United States Bankruptcy Court – District of Delaware
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Investments in cryptocurrencies are risky. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital
Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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