Originally published on: August 10, 2024
***Celsius vs. Tether Lawsuit Unveiled***
In a dramatic turn of events, defunct cryptocurrency platform Celsius has launched a formidable legal battle against Tether, alleging misappropriation of assets and demanding restitution of approximately $3.5 billion in Bitcoin, damages, and legal expenses.
**The Allegations Unveiled**
Celsius’s lawsuit contends that during its bankruptcy proceedings, Tether extended a loan denominated in Tether’s stablecoin USDT, backed by the US dollar. To secure this loan, Celsius provided 39,542.42 BTC as collateral. Subsequently, as Bitcoin’s value plummeted, Celsius was obligated to offer additional collateral to avert liquidation.
**Legal Standoff Unraveled**
Conversely, Celsius claims that Tether abruptly liquidated the BTC reserves at a price point barely covering the debt, explicitly violating their agreement by precluding Celsius from presenting extra collateral. However, Tether rebuffs these accusations, labeling the lawsuit as a baseless “shake down” and vowing to vigorously defend its reputation from unwarranted allegations.
**The Numbers Game Unveiled**
The heart of the dispute revolves around the exact amount sought by Celsius, shrouded in uncertainty. While public discourse hints at a demand for 39,542.42 BTC, valued at approximately $2.4 billion as of recent data, the actual lawsuit petitions to render two additional transfers null and void.
**Hinging on Relief**
Bringing down the hammer, the lawsuit implores the court to compel Tether to return the 15,658.21 Bitcoin, 2,228.01 Bitcoin, and 39,542.42 Bitcoin previously transferred, totaling a staggering 57,428.64 Bitcoin, equating to a colossal $3.48 billion. Additionally, Celsius seeks over $100 million in compensatory damages, with further financial repercussions to be deliberated at trial, alongside legal expenses.
**Impact on Stakeholders**
While the legal tussle intensifies, Tether reassures its USDT holders, citing a robust $12 billion in consolidated equity. Underlining their commitment to weathering the storm, Tether assures stakeholders that even in the eventuality of the lawsuit proceeding, token holders will remain unscathed.
In this high-stakes legal confrontation between Celsius and Tether, the crypto community eagerly awaits the court’s decisive verdict to determine the future course of this battle for billions.
