When the price of bitcoin began falling in early 2022, Tether allegedly demanded additional collateral from Celsius to cover the loan. Recent court documents also show that the cryptocurrency lender provided Tether with an additional USDT worth $300 million in the months leading up to the bankruptcy filing in July and within 90 days thereafter.
Celsius claimed to have satisfied the additional collateral requirement by sending additional #MarketDownturn as collateral several times between May and June 2022. After these payments, #Tether reclaimed the collateral, but decided to liquidate Celsius' collateral before the set 10-hour waiting period expired.
the lawsuit, Celsius claims that Tether liquidated the collateral at a price unfairly favorable to the issuer of the collateral coins, preventing the lender from providing additional collateral. This is stated in documents filed with the court:
the filing, Celsius is asking the court to order Tether to return 15,658.21 bitcoins, 2,228.01 bitcoins and 39,542.42 bitcoins transferred from the #cryptocurrency lender to the issuer of the stablecoin as a preference. The total value of these transfers is 57,428.64 BTC, which is equivalent to approximately $3.5 billion at the current #bitcoin price of $BTC In its new blog, Tether strongly denies any wrongdoing on the part of Celsius, calling the recent lawsuit
"baseless
". According to the coin company, Celsius was unaware of the apparent validity of an agreement made years before its bankruptcy.
In its blog, Tether stated the following.
We look forward to challenging in court this fabricated and baseless forgery, which benefits no one but the lawyers, bankers and consultants involved in this lawsuit.
Paolo Ardoyno, CEO of Tether, reiterated the company's position in a post on Platform X, saying he was ready to make an example of the brazen gold grab in court. In 2022, Tether offered #USDt to some customers, including Celsius; Tether's agreement with customers is very simple: it offered USDt to certain customers who provided excessive bitcoin collateral.
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