NY Court Approves Celsius to Continue $4.3B Lawsuit Against Tether
A New York bankruptcy court has allowed Celsius to continue its $4 billion lawsuit against stablecoin issuer Tether. Key points from the case include:
- Celsius alleges Tether improperly liquidated nearly 40,000 bitcoins worth over $4.3 billion as loan collateral in June 2022, shortly before Celsius halted withdrawals.
- The lawsuit argues Tether did not provide sufficient time for Celsius to meet collateral demands, despite Celsius claiming it had adequate bitcoin reserves.
- Celsius' lawyers stated that timely compliance could have prevented the liquidation at low market prices, benefiting only Tether.
- Tether has called the lawsuit “baseless,” claiming Celsius directed the liquidation to cover its USDT position with Tether.
- The judge ruled that alleged verbal permission from Celsius’ former CEO was insufficient and that failure to provide a 10-hour window for posting collateral may breach their contract.
- One count of the complaint was dismissed without prejudice, allowing Celsius to amend it under British Virgin Islands law.