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Celsius Fights Back: Appeals Court Ruling Against $444M Claim on FTX Transfers
In a recent development, Celsius has filed a notice of appeal with the court in an effort to revive its claim against FTX for allegedly preferential transfers totaling $444 million. This move comes after the court dismissed Celsius’ revised claim due to procedural issues.
As previously reported by Bitcoinist, Judge Dorsey had ruled that Celsius’ initial filing was insufficient and that it had failed to provide sufficient evidence to support its allegations of preferential transfers. When Celsius later filed an amended claim focusing on the $444 million in alleged transfers, the court deemed this move “procedurally improper.”
Celsius has now appealed the ruling, arguing that its original proof of claim met the necessary legal standards and that its subsequent filing was not procedurally defective. The appeals process will focus on whether Celsius’ initial filings were sufficient to signal its intentions regarding avoidance claims and whether the amended filings should have been accepted despite procedural delays.
FTX creditors, represented by activist Sunil Kavuri, had raised concerns about the legitimacy of Celsius’ claims due to the significant delay in filing the amended claims. The outcome of this appeal will have far-reaching implications for both bankrupt entities and their respective creditors, as hundreds of millions of dollars are at stake.
The court’s dismissal of Celsius’ revised claim has been met with mixed reactions from industry stakeholders. While some have expressed concerns over potential procedural issues, others have questioned the validity of FTX’s reorganization process, highlighting the importance of these claims in ensuring fairness and transparency throughout the bankruptcy proceedings.
The legal battle between Celsius and FTX is a significant one, as it could potentially impact the distribution of assets to creditors. The case serves as a reminder that even in the midst of chaos, it is crucial for bankrupt entities and their representatives to adhere to proper procedures to ensure a fair and transparent process for all parties involved.
In conclusion, this ongoing saga underscores the importance of procedural compliance in bankruptcy cases, particularly when significant sums are at stake.
Source: bitcoinist.com
