Celsius Network, a crypto lending platform currently undergoing bankruptcy proceedings, made a claim for USD 7.7 million from Voyager Digital, another crypto lending firm that also filed for bankruptcy. 

Lawyers from the company staked claim to the funds stating that the US bankruptcy code enabled the company to make claims on transactions that took place up to three months before it filed for bankruptcy protection. Voyager reportedly maintained “Earn” accounts with Celsius, through which it made transactions of USD 7.7 million between Celsius accounts, during the three-month period. 

Voyager refuted the claim, stating that Celsius missed the deadline for the filing (October, 03). Celsius subsequently made a request for a deadline extension stating that Voyager sent its legal notice to an out-of-date address for Celsius’ UK subsidiary. Alongside these proceedings, it sold off its self-custody platform GK8 (which it acquired in November of last year for USD 115 million) to Galaxy Digital for an undisclosed amount. 

Analyst QuickTake: This news comes just a week after Celsius was ordered to return USD 50 million worth of crypto held in its “Custody” program to customers. Celsius originally filed for chapter 11 bankruptcy in July following a suspension of customer withdrawals in June. Since then, Celsius has taken a number of steps to mitigate damage, including laying off a number of its employees and paying off over USD 700 million in loans from Aave , MakerDAO , and Compound . Notably, in September, the company also filed a motion to distribute over USD 225 million in frozen assets to its customers  from its “Custody Program” and “Withhold Accounts.”