Judge Says $4 Billion Celsius Lawsuit Against Tether Can Proceed
Celsius can proceed with its $4 billion lawsuit against Tether, as ruled by a U.S. bankruptcy judge. Some aspects of Tether's motion to dismiss were granted, particularly regarding allegations tied to a subsidiary in the British Virgin Islands. Tether previously labeled the case as “baseless.” Celsius claims Tether liquidated 39,500 Bitcoin, valued at approximately $4 billion, to recover an $812 million claim during a market downturn, violating contractual terms. The judge noted that Tether's awareness of Celsius's insolvency did not justify liquidation. Legal experts suggest the ruling may influence future cross-border cryptocurrency disputes, emphasizing the importance of clear contractual obligations. Since January 2024, Celsius has distributed $2.5 billion to 251,000 creditors, covering 93% of claims, though 121,000 creditors have yet to claim their distributions.
