Celsius $4B Bitcoin Lawsuit Against Tether Moves Forward
A US bankruptcy judge has allowed Celsius Network's lawsuit against Tether to proceed, rejecting Tether's motion to dismiss claims regarding the alleged improper liquidation of Celsius's Bitcoin collateral. Celsius claims Tether executed a "fire sale" of over 39,500 BTC in June 2022, violating their lending agreement and incurring over $4 billion in losses. The lawsuit asserts that Tether breached good faith under British Virgin Islands law and engaged in fraudulent transfers. The judge found sufficient US jurisdiction due to Tether's domestic ties, despite its incorporation abroad. While some claims were dismissed, key allegations related to breach of contract and fraudulent transfers will continue. Tether's CEO has dismissed IPO plans, despite speculation about a potential valuation exceeding $500 billion. Tether is expanding its Bitcoin holdings, recently acquiring nearly 37,230 BTC.
