"Law firm achieves extensive triumph for litigation administrator in Celsius's customer preference lawsuit"
In a landmark decision, global law firm White & Case LLP has secured a significant legal victory in the U.S. Bankruptcy Court for the Southern District of New York. The court ruled entirely in favour of the Litigation Administrator represented by White & Case, confirming that the court has jurisdiction over foreign defendants and that U.S. preference laws apply in the Celsius Network customer preference litigation.
The ruling, which resolves certain novel and complex questions of law, particularly regarding cryptocurrency, paves the way for the Litigation Administrator to seek the return of cryptocurrency that Celsius customers withdrew, or its current appreciated value. This decision could potentially unlock hundreds of millions of dollars for Celsius's creditors.
The victory follows White & Case’s earlier role advising the Official Committee of Unsecured Creditors and co-leading the preferential transfer recovery efforts under Celsius’s chapter 11 bankruptcy plan. The firm's partner, Samuel P. Hershey, specializing in Litigation, Financial Restructuring and Insolvency, stated that this victory is the first step in recovering significant value for Celsius's creditors.
The ruling establishes that cryptocurrency withdrawals by Celsius customers can be clawed back under U.S. bankruptcy law, treated as preferential transfers, regardless of whether the recipients are foreign. This is a precedent-setting outcome in cryptocurrency insolvency litigation.
The team at White & Case, led by partners Ronald Gorsich, Gregory F. Pesce, Lucas Curtis, and Laura E. Baccash, among others, specializes in Litigation, Financial Restructuring and Insolvency, Fintech, Life Sciences and Healthcare, and more. Nikita Ash, another partner at the firm, specializes in Litigation and Pro Bono.
The court's decision allows the Litigation Administrator to continue to pursue claims against hundreds of foreign defendants. This is a crucial step towards recovering value for Celsius's creditors and setting a precedent for future cryptocurrency insolvency cases.
[1] Source: White & Case press release, dated March 15, 2023.
- The victory obtained by White & Case LLP, a global law firm, in the U.S. Bankruptcy Court for the Southern District of New York, serves as a precedent for the Litigation Administrator to recover cryptocurrency withdrawals made by Celsius Network customers.
- White & Case's partner, Samuel P. Hershey, who specializes in Litigation, Financial Restructuring, and Insolvency, commented that this decision marks the first step in recovering significant value for Celsius's creditors.
- The court's ruling establishes that cryptocurrency withdrawals can be considered preferential transfers under U.S. bankruptcy law, regardless of whether the recipients are foreign, making it a significant outcome in cryptocurrency insolvency litigation.
- The firm's team, headed by partners Ronald Gorsich, Gregory F. Pesce, Lucas Curtis, Laura E. Baccash, and others, offers expertise in Litigation, Financial Restructuring and Insolvency, Fintech, Life Sciences, and Healthcare, among other services.
- Another White & Case partner, Nikita Ash, who specializes in Litigation and Pro Bono, has also contributed to the firm's work on this case.
- With this decision, the Litigation Administrator is empowered to pursue claims against hundreds of foreign defendants, potentially unlocking hundreds of millions of dollars for Celsius's creditors and setting a crucial precedent for future cryptocurrency insolvency cases. [1] This information was obtained from a White & Case press release dated March 15, 2023.
