White & Case Secures Sweeping Victory for Litigation Administrator in Celsius’s Customer Preference Litigation

Global law firm White & Case LLP has secured a sweeping victory in the United States Bankruptcy Court for the Southern District of New York on behalf of the Litigation Administrator for Celsius Network, LLC in connection with Celsius's multi-billion dollar customer preference litigation. The bankruptcy court ruled for the Litigation Administrator on all disputed issues, holding that foreign defendants are subject to the US bankruptcy court's jurisdiction and US preference laws, and that the Litigation Administrator is entitled to seek the return of the cryptocurrency that customers withdrew from Celsius or its current value, which has appreciated substantially since Celsius's petition date.

This ruling potentially unlocks hundreds of millions of dollars for Celsius's creditors and allows the Litigation Administrator to continue to pursue claims against hundreds of foreign defendants. 

"This victory is the first step in recovering significant value for Celsius's creditors," said White & Case partner Samuel Hershey, who argued on behalf of Celsius. "The court's decision resolves in Celsius's favor certain novel and complex questions of law, particularly regarding cryptocurrency, that will redound to the benefit of tens of thousands of stakeholders."

In 2024, White & Case successfully advised the Official Committee of Unsecured Creditors of Celsius on the confirmation of Celsius's chapter 11 plan. Under Celsius's chapter 11 plan, the Firm was appointed to co-lead preferential transfer recovery efforts alongside the Litigation Administrator, including mass litigation and settlement procedures. 

The White & Case team was led by Financial Restructuring and Insolvency partners Gregory Pesce, Laura Baccash (both in Chicago), Samuel Hershey (New York) and Ronald Gorsich (Los Angeles), and included Financial Restructuring and Insolvency associates Devin Rivero (Miami) and Lucas Curtis (New York); and Litigation associate Nikita Ash (New York).

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