FTX Bankruptcy Plan Clashes With Celsius, Administrator Says (2)

FTX Trading Ltd.'s intentions to pay back its customers who also held accounts with fellow crypto firm Celsius Network conflict with the latter’s efforts to recover funds, a Celsius litigation administrator said.

FTX’s proposed bankruptcy plan aims to compensate people who had accounts with both FTX and Celsius. But the funds FTX would use to pay those customers actually belong to Celsius, the Celsius estate litigation administrator said in an objection Aug. 16 in the US Bankruptcy Court for the District of Delaware.

The tension could culminate in conflicting rulings between two of the country’s top bankruptcy courts: the US ...