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YEREVAN (CoinChapter.com) — Celsius, the defunct cryptocurrency exchange, has filed a lawsuit against Tether, seeking $3.5 billion in Bitcoin returns. The lawsuit centers on the handling of BTC collateral during Celsius’ bankruptcy proceedings, where Celsius claims that Tether improperly liquidated the assets.
Celsius Sues Tether Over Bitcoin Collateral. Source: Tether.io Celsius Demands $3.5 Billion in Bitcoin and Damages in Tether Lawsuit
Celsius alleges that Tether liquidated 57,428.64 Bitcoin, valued at approximately $3.48 billion as of August 10. This Bitcoin was provided to Tether as collateral for a loan of USDT, Tether’s stablecoin. The lawsuit claims that Tether sold off the Bitcoin without allowing Celsius the opportunity to provide additional collateral, which led to a significant financial loss for the exchange.
Celsius Bankruptcy Complaint Filed Against Tether. Source: United States Bankruptcy Court, Southern District of New York
Celsius is not only asking for the return of the Bitcoin but also seeking damages and legal fees, which brings the total claim to $3.5 billion.
Tether Dismisses Celsius Lawsuit, Claims Liquidation Was Within Agreement Terms
Tether responded to the lawsuit by calling the claims baseless. According to Tether, Celsius itself directed the liquidation of the BTC collateral when it chose not to provide additional assets. Tether maintains that it acted within the terms of their agreement and that the liquidation was necessary to close out a $815 million USDT position.
Tether reassured its stakeholders, stating that even if the lawsuit were to succeed, it would not impact Tether token holders, thanks to its $12 billion in consolidated equity.
Celsius Seeks Return of Additional 17,886 Bitcoin Amid Legal Battle with Tether
Celsius is also seeking the return of two additional BTC transfers made during the same period, totaling 17,886.22 BTC. This brings the total amount in dispute to 57,428.64 Bitcoin, worth approximately $3.48 billion.
The lawsuit has added complexity to Celsius’ bankruptcy proceedings. Both Celsius and Tether are preparing for a legal battle over these claims, with significant financial stakes involved.
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