Bankrupt cryptocurrency lender Celsius has filed a lawsuit against USDT issuer Tether, demanding the return of $2.4 billion in Bitcoin amid ongoing disputes.
Basis of Celsius' Lawsuit Against Tether
Celsius sued Tether in 2024, seeking the return of $2.4 billion in Bitcoin. The dispute dates back to a 2022 agreement where Tether provided USDT, and Celsius sent Bitcoin as collateral.
Tether's Arguments
Tether claims that Celsius is trying to shift blame for its own financial mismanagement. Tether argues that Celsius's request for Bitcoin return is unjustified, as the liquidation was conducted with Celsius’s consent.
Court's Decision
The U.S. bankruptcy court allowed Celsius' $4 billion Bitcoin liquidation lawsuit against Tether to proceed. The judge rejected significant portions of Tether's motion to dismiss the case.
Celsius's lawsuit against Tether highlights the complex relationships and legal issues within the cryptocurrency lending and issuing industries. Further proceedings are expected to clarify regulatory and obligation matters in the crypto space.
