Judge Permits Celsius Network to Continue $4 Billion Lawsuit Against Tether
A U.S. court has allowed Celsius Network to proceed with its lawsuit against Tether, alleging breach of a lending agreement. Key points in Tether's motion to dismiss were rejected, enabling the claims to move forward.
- Celsius Network, in bankruptcy proceedings, claims Tether improperly liquidated over 39,500 Bitcoin as collateral following a price decline.
- The liquidation, described as a "fire sale," allegedly occurred without adhering to required waiting periods and resulted in the sale at an average price of $20,656.
- Celsius asserts this action caused a loss of $4 billion in BTC value and violated duties under British Virgin Islands law.
- The lawsuit includes allegations of fraudulent and preferential transfers under U.S. Bankruptcy Code.
- Tether contends that U.S. courts lack authority over the case, arguing that Celsius is not a U.S. company.
- The court partially denied Tether's dismissal request, allowing breach of contract and other claims to proceed.
Additionally, Tether recently acquired a stake in Elemental Altus, indicating an interest in integrating stable assets like gold and Bitcoin into its operations.