⚖️ Celsius Sues Tether - The $3,500,000,000 Bitcoin Battle Begins!
Celsius, the now-defunct crypto exchange, is taking Tether to court, seeking around $3.5 billion in Bitcoin, damages, and legal fees. This lawsuit stems from what Celsius claims was a misappropriation of assets during its bankruptcy proceedings.
The Allegations 🔍
Celsius alleges that during its bankruptcy, it provided Tether with 39,542.42 BTC as collateral for a loan in Tether’s stablecoin, USDT. As Bitcoin's price plummeted, Celsius was supposed to post more collateral to avoid liquidation. However, according to the lawsuit, Tether sold off the Bitcoin collateral at a price point that covered Celsius’ debt almost exactly, without giving Celsius a chance to provide the additional collateral.
Tether's Defense
Tether is not backing down, calling the lawsuit a baseless "shake down." The company asserts that the liquidation was carried out at Celsius' request, not in violation of their agreement. Tether claims Celsius chose not to post more collateral and instead directed Tether to liquidate the BTC to close out an $815 million USDT position.
What's at Stake?
The amount Celsius is seeking includes 57,428.64 BTC, which, as of Aug. 10, is worth about $3.48 billion, plus at least $100 million in damages. This lawsuit is one of the largest of its kind, with Tether stating that even in the remote scenario where Celsius wins, USDT holders will not be affected due to Tether’s $12 billion in consolidated equity.
The Bigger Picture
This legal battle highlights the intense scrutiny and high stakes involved in crypto transactions, especially when companies face financial distress. The outcome of this case could set a significant precedent for how collateralized loans and liquidations are handled in the crypto space.
Stay tuned as this high-stakes legal drama unfolds & follow @Professor Mende - Bonuz Ecosystem Founder !
