Celsius Sues Tether for $3.5 Billion in Bitcoin

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As a seasoned financial analyst with over two decades of experience navigating the complexities of the crypto market, I find myself intrigued by the ongoing legal saga between Celsius and Tether.

The digital currency trading platform, Celsius Exchange, has initiated a court case against Tether, alleging poor management of their assets. Celsius seeks a compensation of 3.5 billion Bitcoins, together with reimbursement for any resulting losses and court costs.

In the legal case at hand, the dispute originated when Celsius entered bankruptcy proceedings. Celsius asserted that they lent USDT, a digital currency issued by Tether, against the security of 39,542.42 Bitcoin as collateral.

In response to Bitcoin’s price decrease, Celsius had planned to add extra security by offering more collateral to prevent losing the Bitcoin. However, as reported by Celsius, Tether refused this option and went ahead with liquidating the Bitcoin, which was sold at a price nearly equivalent to the outstanding debt owed.

In a recent legal action, Celsius is demanding the return of approximately 57,428.64 Bitcoins, including other Bitcoin transfers made during that period. This equates to around $3.48 billion at the current Bitcoin value as of August 10th.

On the contrary, Tether asserts that the lawsuit is unfounded, characterizing it as “baseless.” Tether claims that Celsius was the one who decided against supplying additional collateral and ordered Tether to liquidate the Bitcoin instead.

According to Tether, they plan to strongly contest these accusations. They also want to make it clear to USDT holders that this legal action won’t affect them directly, emphasizing their $12 billion in combined assets as a security measure.

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2024-08-11 01:08