Celsius claim Galaxy Digital seeking over $190,000 to repay $3 debt Celsius claim Galaxy Digital seeking over $190,000 to repay $3 debt
Celsius challenges Galaxy's hefty fees for holding miniscule crypto assets amid bankruptcy proceedings.
1 min read
Updated: Sep. 29, 2023 at 8:29 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Celsius has objected to a motion filed by cryptocurrency company Galaxy Digital seeking over $190,000 in fees for storing only $2.67 worth of Celsius’ digital assets.
In a bankruptcy court filing Thursday, Celsius argues that Galaxy’s services were not necessary expenses deserving priority repayment.
Celsius filed for Chapter 11 bankruptcy protection in July. The two companies had a business relationship where Celsius stored cryptocurrency on Galaxy’s platform and paid a monthly fee.
After Celsius sold part of its business to Galaxy in a bankruptcy sale, it says it only had $2.67 worth of cryptocurrency stored with Galaxy. But Galaxy kept invoicing Celsius around $30,000 per month.
Galaxy filed a motion claiming these were necessary administrative costs to preserve Celsius’ assets and asking the court to order repayment. Celsius objected, saying the tiny value stored makes the fees disproportionate and unnecessary.
Celsius has asked the court to deny Galaxy’s motion for fees totaling $191,610. Celsius says Galaxy failed to prove the expenses were actual and necessary costs deserving of priority repayment in the bankruptcy case.
The objection is pending before the U.S. Bankruptcy Court for the Southern District of New York.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Celsius Network is a P2P decentralized lending & borrowing platform.
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
Galaxy Digital
Galaxy (TSX: GLXY) is a digital asset and blockchain leader providing access to the growing digital economy.