Defunct cryptocurrency lender Celsius Network Inc. has filed a notice of appeal after Judge John Dorsey rejected the company's FTX damages claim worth about $444 million, according to an FTX creditor activist.

court Documents The cryptocurrency lending platform showed that it had filed a notice of appeal challenging Judge John Dorsey's ruling, which was dismissed Celsius"Claims for FTX Losses estimated at approximately $444 million. The trial is part of FTX's ongoing bankruptcy proceedings which seeks to repay damages caused by the collapsed cryptocurrency exchange led by Sam Bankman-Fried.

According to the appeal filed by Celsius Network Litigation Director Mohsen Meghji, Celsius initially filed a claim for damages amounting to $2 billion due to “unsubstantiated and disparaging statements” about the company’s balance sheet and financial stability by FTX officials that the company’s lawyers said they believe accelerated Celsius’ collapse. In 2022.

However, before the embargo date, Celsius reduced the claim amount to around $444 million, with the cryptocurrency lending company stating that it would focus on restoring “preferential transfers” that would prioritize repayment to certain creditors.

According to the document, FTX's debtors denied Celsius' claims because they considered that the original evidence provided by the company was insufficient to prove the claim. Additionally, the amendment from $2 billion to $444 million is believed to have been introduced “too late and should be rejected.”

Celsius argued that the original evidence should be sufficient to meet the minimum requirements under the Bankruptcy Code and notice to debtors.

Last December, Judge Dorsey dismissed both the $444 million amended claim and the initial $2 billion claim, stating that Celsius's original proof of claim — which contained only one sentence about investigating the preference claims — was insufficient to prove its claims. Compensation for FTX damages.

Furthermore, the court found that the amended evidence submitted by Celsius in July was not legitimate because the revised claim did not relate to the original claims. Furthermore, Celsius neither requested permission to amend nor provided an explanation for the delay in filing the application.

In late November 2024, Celsius pledged to distribute $127 million to its litigation recovery account balances. In the same month, a federal judge in New York Ruling against Former Celsius CEO Alex Mashinsky attempts to dismiss two fraud charges.

Mashinsky is accused of manipulating the price of Celsius' original currency, the. He faces two counts of wire fraud and market manipulation after the collapse of the cryptocurrency lending company, which could result in a maximum sentence of 115 years behind bars.