Celsius appeals dismissal of $2 billion defamation claim against FTX

Celsius Network filed a notice of appeal on Dec. 31, challenging Judge John Dorsey’s decision to dismiss the agency’s $2 billion defamation claim against FTX. The appeal is currently scheduled for trial in district court. Celsius previously alleged that defamatory statements by FTX executives, employees, and affiliates had a negative impact on the company’s reputation and financial health, allegedly accelerating the company’s bankruptcy in July 2022. Celsius argued that FTX’s public statements reduced confidence in its services, forced customers to withdraw funds, and ultimately pushed the platform into bankruptcy. According to court documents, Celsius initially filed a $2 billion claim based on “unsubstantiated and derogatory statements” spread by FTX insiders. However, FTX rejected the claim, saying that Celsius’ assertions lacked sufficient evidence and did not fall within the scope of the bankruptcy claim. In December, more than a year after the initial claim was filed, Celsius amended its application to reduce the claim to $444 million. The amended claim shifted the focus to the priority assignment, alleging that certain payments made to FTX prior to its bankruptcy should be recovered. However, Judge Dorsey dismissed both the original and amended claims for procedural deficiencies. The ruling highlighted that Celsius failed to seek court approval for late amendments, ultimately upholding FTX’s objections. Dorsey’s conclusion emphasized that, regardless of the substance of the allegations, the amended claim cannot circumvent procedural requirements. (CryptoSlate)