Bankrupt crypto platform Celsius has filed a lawsuit against Tether.
Bankrupt crypto platform Celsius has filed a lawsuit against Tether. The lawsuit alleges misappropriation of assets during Celsius’ bankruptcy proceedings, and seeks the return of approximately $3.5 billion.
Celsius claims that Tether loaned it a specific amount of USDT, backed by U.S. dollars, and received 39,542.42 BTC as collateral. When Bitcoin’s price dropped, Celsius was required to provide additional collateral to avoid liquidation. The lawsuit contends that Tether liquidated the BTC without allowing Celsius the chance to provide more collateral.
Tether has dismissed the lawsuit as baseless, labeling it a “shake down.” In a blog post, the company stated: “The agreement required Celsius to post additional collateral to avoid the liquidation of its BTC. When Celsius chose not to post additional BTC it directed Tether to liquidate the BTC collateral Tether held in order to close out its roughly 815 million USD₮ position with Tether.”
Tether reassured USDT stakeholders that its $12 billion in consolidated equity would protect token holders, even if the lawsuit progresses.
Celsius is asking for the return of 57,428.64 Bitcoin or its equivalent in U.S. dollars, totaling about $3.48 billion as of August 10. This includes three separate transfers made during the same period. Additionally, Celsius seeks at least $100 million in damages, with further amounts to be determined at trial.
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