Bitrabo Editorial
Celsius, a defunct crypto lender, has filed a lawsuit against Tether, accusing the stablecoin issuer of misappropriating assets. This legal action is part of Celsius’ efforts to recover billions of dollars for its creditors after declaring bankruptcy in 2022.
Reason Behind Celsius’ Multi-Billion Dollar Lawsuit Against Tether
After initiating lawsuits against several cryptocurrency companies, Celsius has now targeted Tether, the largest stablecoin company, in its legal pursuit. Other entities involved in legal disputes with Celsius include Badger DAO, Bancor, and Compound.
Celsius filed its significant lawsuit against Tether on August 9, seeking the return of 39,542 BTC in collateral it provided for loans from Tether. The lawsuit alleges that Tether demanded additional collateral from Celsius as the price of Bitcoin dropped in early 2022. Celsius complied by sending more BTC but claims that Tether liquidated the collateral before the mandated waiting period.
The lawsuit argues that Tether’s actions unfairly benefited them and that Celsius would have avoided the liquidation if given the opportunity to meet the collateral demand. Celsius is seeking the return of 57,428.64 BTC, equivalent to around $3.5 billion at the current Bitcoin price.
Tether Dismisses Lawsuit as a ‘Shakedown’
Tether has refuted the allegations made by Celsius, denouncing the lawsuit as baseless and labeling it a shakedown. Tether emphasized the validity of the agreement made with Celsius before the latter’s bankruptcy and expressed confidence in defending itself in court.
Tether’s CEO, Paolo Ardoino, reiterated the company’s stance through a blog post and emphasized their commitment to challenging what they perceive as opportunistic legal actions.
Tether also highlighted its substantial equity and assured USDT holders that any potential escalation of the lawsuit would not impact them.