Celsius Network's $2 billion defamation claim against FTX was rejected and appealed

ChainCatcher message, Celsius Network filed an appeal on December 31 against Judge John Dorsey’s dismissal of its $2 billion defamation claim against FTX. The appeal is currently scheduled for trial in the district court, marking the latest development in the legal battle between the two embattled cryptocurrency companies. This appeal arises from Celsius’s claim that defamatory statements made by FTX senior management, employees, and affiliated companies have had a negative impact on its reputation and financial health, accelerating its bankruptcy in July 2022. Celsius believes that FTX’s public statements have undermined customer confidence in its services, leading to a mass withdrawal of funds and ultimately pushing the platform towards bankruptcy. According to court documents, Celsius initially filed a $2 billion claim, alleging that FTX insiders were spreading “unsubstantiated disparaging remarks.” However, FTX rejected this claim, arguing that Celsius’ assertions lack sufficient evidence and do not fall within the scope of bankruptcy claims. In December, more than a year after its first claim, Celsius modified its application, reducing the claim amount to 4.44 billion U.S. dollars. The modified claim will focus on priority transfers, claiming that certain payments made before the bankruptcy of FTX should be recovered. However, Judge Dolsi rejected the original and modified lawsuits on the grounds of procedural defects.