Originally published on: August 10, 2024
Cryptocurrency exchange Celsius is making headlines with a $3.5 billion lawsuit against Tether, alleging misappropriation of assets in a recent Bitcoin sell-off. Celsius is seeking the return of approximately $2.4 billion worth of Bitcoin, along with damages and legal fees.
According to court documents, Tether provided Celsius with a loan of TetherUSDT during the exchange’s bankruptcy proceedings. In return, Celsius sent over 39,542.42 BTC as collateral. As the price of Bitcoin dropped, Celsius was asked to provide more collateral to prevent liquidation. However, Celsius claims that Tether proceeded to liquidate the BTC without giving them a chance to provide additional collateral.
Tether has denied the allegations, calling the lawsuit baseless and promising a vigorous defense. The company claims that Celsius requested the sell-off after failing to provide additional collateral.
In addition to the $2.4 billion in BTC, Celsius is seeking the voiding of two other transfers, totaling 57,428.64 Bitcoin, which amounts to approximately $3.48 billion at current market prices. The lawsuit also includes a demand for at least $100 million in damages and legal fees.
Tether has assured its stakeholders that they will not be affected by the lawsuit, citing its $12 billion in consolidated equity. The legal battle is set to continue, with both parties gearing up for a fight in court.
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