According to ChainCatcher news, Celsius Network filed an appeal on December 31 against Judge John Dorsey's decision to dismiss its $2 billion defamation claim against FTX. The appeal is currently set for a hearing in the district court, marking the latest development in the legal battle between the two troubled cryptocurrency companies.
The appeal stems from Celsius' claim that defamatory statements made by FTX executives, employees, and affiliated entities negatively impacted its company reputation and financial health, accelerating its bankruptcy in July 2022. Celsius believes that FTX's public statements undermined customer confidence in its services, leading to a mass withdrawal of funds and ultimately driving the platform into bankruptcy.
According to court documents, Celsius initially sought $2 billion in damages, citing "unsubstantiated and disparaging statements" spread by FTX insiders. However, FTX rejected the claim, arguing that Celsius' 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 revised claim focuses on preferential transfers, alleging that certain payments made prior to FTX's bankruptcy should be clawed back. However, Judge Dorsey dismissed the original and amended lawsuits on procedural grounds.
