According to U.Today, stablecoin issuer Tether has responded to a $2.4 billion lawsuit initiated by the now-defunct cryptocurrency lending platform Celsius. The lawsuit accuses Tether of making fraudulent Bitcoin transfers, stemming from a 2020 loan agreement between the two parties. Celsius claims that Tether took out loans at low rates and failed to provide additional coins following a market crash, leading to the liquidation of its Bitcoin collateral.

Tether has strongly denied these allegations, with CEO Paolo Ardoino asserting that the company had the right to liquidate Celsius's position after it failed to send more collateral. Ardoino described the lawsuit as