Celsius Network appeals the dismissal of its $2 billion defamation claim against FTX
ChainCatcher news, Celsius Network filed an appeal on December 31, contesting Judge John Dorsey's decision to dismiss its $2 billion defamation claim against FTX. The appeal is currently set for consideration in the district court, marking the latest development in the ongoing legal battle between the two struggling cryptocurrency companies.This appeal stems from Celsius's claim that defamatory statements made by FTX executives, employees, and affiliates negatively impacted its company's reputation and financial health, accelerating its bankruptcy in July 2022. Celsius argues that FTX's public statements undermined customer confidence in its services, leading to a rush of withdrawals and ultimately pushing the platform toward bankruptcy.According to court documents, Celsius initially filed a $2 billion claim, citing that FTX insiders spread "unverified and disparaging statements." However, FTX rejected the claim, arguing that Celsius's 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 amended claim shifted focus to priority transfers, asserting that certain payments made before FTX's bankruptcy should be recovered. However, Judge Dorsey dismissed both the original and amended lawsuits on procedural grounds.
