Market News

Judge Allows Celsius to Pursue $4 Billion Lawsuit Against Tether

A US bankruptcy judge has granted Celsius Network the permission to advance its lawsuit against Tether, the issuer of USDT.

Celsius alleges that it was forced into a "fire sale" of Bitcoin when Tether demanded immediate collateral payments.

This resulted in the sale of over 39,000 BTC, which Celsius claims was mishandled in the lead-up to its bankruptcy.

The company seeks to reclaim approximately 57,429 BTC, valued around $4 billion, and is also demanding $100 million in damages.

Tether contests that the actual value of the disputed Bitcoin is much lower, around $2.4 billion, suggesting a significant disagreement over the case's merits.

Celsius argues that Tether engaged in practices that exploited the US cryptocurrency market and that their transactions were preferential under bankruptcy law.

While Tether termed the lawsuit a "shake down," insisting that its demands were reasonable, owners of the stablecoin may face a protracted legal battle.

Tether CEO Paolo Ardoino hinted at a robust defense through a provocative social media post, signaling their readiness to contest Celsius's claims.

Amidst these developments, Bitcoin has seen a price surge, currently trading at $108,689, just shy of its recent highs.

This legal confrontation could have broader implications for the cryptocurrency market as it unfolds.