Lawyer Group Wins Pivotal Decision for Claims Manager in Celsius's Customer Prioritization Legal Battle
In a significant development for Celsius Network, the United States Bankruptcy Court for the Southern District of New York has ruled in favour of the Litigation Administrator, potentially unlocking hundreds of millions of dollars for Celsius's creditors.
The court's decision, announced on July 30, 2025, affirms that foreign defendants fall under the US bankruptcy court's jurisdiction and are subject to US preference laws. This ruling means that the Litigation Administrator is entitled to seek the return of cryptocurrency that customers withdrew from Celsius, or its current, substantially appreciated value.
Global law firm White & Case LLP played a major role in this victory, representing the Litigation Administrator in court. The firm secured this "sweeping victory" for Celsius, resolving novel and complex legal issues surrounding cryptocurrency in the bankruptcy context.
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). The team included Financial Restructuring and Insolvency associates Devin Rivero (Miami) and Lucas Curtis (New York); and Litigation associate Nikita Ash (New York).
One of the key contributions by White & Case was successfully arguing that the preferential transfers were domestic in nature despite involving foreign customers, based on contract terms such as New York law governance and arbitration requirements. This legal strategy was pivotal in establishing jurisdiction and enabling recovery efforts against foreign defendants.
Samuel Hershey, a partner at White & Case, argued on behalf of Celsius and stated that the court's decision resolves certain novel and complex questions of law. He added that this victory marks an important step toward recovering value for Celsius creditors.
Under Celsius's chapter 11 plan, White & Case was appointed to co-lead preferential transfer recovery efforts alongside the Litigation Administrator. In 2024, the firm successfully advised the Official Committee of Unsecured Creditors of Celsius on the confirmation of Celsius's chapter 11 plan.
White & Case practices in the service areas of Financial Restructuring and Insolvency, Litigation, Fintech, United States, and North America. For more information, please contact the local media contact.
[1] Source: White & Case Press Release, July 30, 2025 [3] Source: Celsius Network LLC v. Creditors Committee, United States Bankruptcy Court for the Southern District of New York, Case No. 22-11566 (LSS) (JGK) (RJL)
In addition to the key players and contributions mentioned above, the White & Case team also includes associates specializing in Litigation and Pro Bono (Nikita Ash), Life Sciences and Healthcare (Lucas Curtis), Financial Restructuring and Insolvency (Devin Rivero), and partners specializing in Litigation, White Collar/Investigations, Financial Restructuring and Insolvency, Financial Institutions (Ronald Gorsich), Financial Restructuring and Insolvency, Energy, Mining & Metals, Power, Private Capital, and Real Estate (Gregory F. Pesce), and Financial Restructuring and Insolvency, Life Sciences and Healthcare (Laura E. Baccash).
- White & Case LLP, a global law firm, played a significant role in a recent court ruling favoring Celsius Network, potentially unlocking hundreds of millions of dollars for the company's creditors.
- The White & Case team, led by Financial Restructuring and Insolvency partners Gregory Pesce, Laura Baccash, Samuel Hershey, and Ronald Gorsich, secured this "sweeping victory" for Celsius.
- The court's decision affirms that foreign defendants fall under the US bankruptcy court's jurisdiction and are subject to US preference laws.
- The White & Case team successfully argued that the preferential transfers were domestic in nature despite involving foreign customers, based on contract terms such as New York law governance and arbitration requirements.
- The Litigation Associate, Nikita Ash, was instrumental in the case, focusing on both Litigation and Pro Bono services.
- Samuel Hershey, a partner at White & Case, stated that the court's decision resolves certain novel and complex questions of law and marks an important step toward recovering value for Celsius creditors.
