US court restricts Papaya asset transfers in dispute with Firy subsidiary Skillz
FIRY•A Delaware bankruptcy court barred transfers from Papaya’s U.S. accounts, with limited exceptions, in a dispute over an approximately $730 million judgment owed to Firy subsidiary Skillz.
1. Transfer restrictions
The court barred transfers from Papaya’s U.S. accounts on October 27, 2026, except for certain ordinary-course payments. Those payments require 115% prefunding from Papaya’s overseas accounts, and transfers to insiders or affiliates are prohibited. The court found Papaya moved more than $70 million to Israel before trial without disclosing the transfers to the New York court. Papaya has appealed the July 27, 2026 false-advertising judgment but has not posted a bond securing it.
