A U.S. judge has permitted Celsius Network to continue its multi-billion lawsuit against Tether related to the sale of Bitcoin, raising significant procedural questions.
Judge's Ruling
On Monday, Judge Martin Glenn ruled in New York that some aspects of Celsius's lawsuit against Tether have merit. Celsius claims that Tether conducted a 'fire sale' of more than 39,500 BTC, resulting in losses exceeding $4 billion. The judge noted that the alleged verbal permission from former Celsius CEO Alex Mashinsky to liquidate collateral was 'insufficient.'
Details of The Case
The dispute arose from a margin call issued by Tether amid declining Bitcoin prices three years ago. Celsius claims the agreement included a 10-hour window to post additional collateral, but Tether sold the Bitcoin before that period expired. Tether's CEO Paolo Ardoino stated that Celsius had instructed the sale of BTC 'to close out its position.'
Recent Developments
Celsius completed its bankruptcy process on January 31, 2024, and is currently repaying its creditors. The ongoing litigation against Tether highlights the complexities within the crypto industry and the importance of upholding commitments in digital asset dealings. Additionally, former Celsius executive Alex Mashinsky has been sentenced to 12 years in prison for fraud.
The continuation of Celsius's lawsuit against Tether underscores the complications facing the cryptocurrency industry and the significance of adherence to agreements in digital asset management.
