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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Jan 02, 2025 07:05 UTC
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Celsius Rejects FTX Lawsuit Court Ruling, Seeks $444 Million
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CEL $ 0.07514 (-0.25%) 
Celsius appeals court dismissal of its $444M claims against FTX in bankruptcy proceedings.
Celsius accused FTX of false claims and unfair transactions worsening its financial troubles.
Celsius returned $2.53B to creditors and plans more payouts despite ongoing legal battles.
Celsius, the bankrupt crypto lender, has filed an appeal against a court decision that dismissed its claims for damages against FTX. The appeal is a critical step in Celsius’s fight to recover funds while navigating its bankruptcy process.
With billions initially at stake, dramatic legal twists, and its founder facing serious criminal charges, Celsius’s story is a revealing look at the risks and chaos of the crypto world. Can Celsius find a way out?
Celsius vs FTX: The Story So Far
Celsius initially demanded $2 billion in damages, accusing FTX of making false statements that worsened its financial troubles. Later, the claim was revised to $444 million, targeting “preferential transfers” that allegedly gave unfair advantages to certain creditors.
In December, Judge John Dorsey rejected both claims, stating that Celsius lacked sufficient evidence.
The judge also criticized the company for improperly amending its claims in July 2024 without court approval, noting that the changes were unrelated to the original allegations and could interfere with FTX’s restructuring efforts.
Paying Back Creditors
Despite these legal hurdles, Celsius has made progress in compensating its creditors. In August, the company returned $2.53 billion to over 250,000 creditors, covering about two-thirds of the claims. In November, it announced an additional payout of $127 million from its recovery funds.
These repayments briefly lifted the value of Celsius’s native token, CEL, which soared by 350% to $0.56 in September. However, the price later dropped to $0.1960, reflecting ongoing challenges for the platform.
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Alex Mashinsky in Trouble?
Celsius’s challenges have been compounded by the legal troubles of its founder, Alex Mashinsky. Last month, Mashinsky pleaded guilty to fraud and market manipulation involving the CEL token. He faces a potential 20-year prison sentence, with sentencing set for April 2025.
What Lies Ahead for Celsius?
By appealing the court’s dismissal of its claims against FTX, Celsius hopes to overturn the decision and strengthen its financial recovery efforts. However, this case highlights the legal and financial complexities of the cryptocurrency industry.
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As Celsius works to regain its reputation and deliver fair outcomes for its creditors, the company’s future remains uncertain. The road ahead is not going to be easy.
FAQs
Since Celsius was the first to offer “smart contracts” without human interaction, it may shape the future, making it a sound investment.
CEL’s price might hit its potential high of $14.036 by the end of 2025.
Yes 
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