Court Permits Celsius to Proceed with $4B Bitcoin Lawsuit Against Tether
A US bankruptcy judge has ruled that Celsius Network‘s lawsuit against Tether, alleging improper liquidation of $4 billion in Bitcoin collateral, can proceed. This decision marks a significant development in the ongoing legal dispute between the two cryptocurrency entities.
Background of the Bitcoin Lawsuit
Celsius claims Tether breached their lending agreement by conducting a ‘fire sale’ of over 39,500 BTC during a market downturn. The sale occurred without following agreed procedures and at prices below market levels.
- Celsius alleges breach of contract and fraudulent transfer.
- The judge allowed key claims to proceed while dismissing some counts.
Legal Implications for Crypto Regulation
The ruling could set a precedent for how international cryptocurrency disputes are handled in US courts. Tether argued the US court lacked jurisdiction, but the judge found sufficient US ties to proceed.
Current Status of Celsius Network
Celsius, now out of bankruptcy, is repaying creditors. The company’s exit from bankruptcy after an 18-month restructuring process marks a new phase in its operations.
Tether’s Expansion and Market Impact
Tether‘s CEO has dismissed IPO plans, despite speculation valuing the company at over $500 billion. Meanwhile, Tether continues to expand its Bitcoin holdings and market presence.
