Celsius Network's $4 billion lawsuit against Tether is moving forward, raising questions about the enforcement of crypto contracts in the U.S.
Permission to Proceed with the Lawsuit
The U.S. Bankruptcy Court in New York has allowed Celsius Network's lawsuit against Tether, focusing on breach of contract and fraudulent transfer. The dispute arose from Celsius's collapse in 2022, which triggered the liquidation of 39,500 BTC.
Response to the Court's Decision
Tether, led by CEO Paolo Ardoino, contests the claims, arguing that U.S. courts lack jurisdiction. However, the court did not uphold this position: "We maintain that all actions taken regarding the liquidation were in accordance with the terms and necessities of the underlying agreements and legal requirements," stated Ardoino.
Potential Consequences for Future Disputes
The case of Celsius v. Tether may set precedents for future disputes involving crypto contracts. Similar cases, like Mt. Gox and FTX, also dealt with asset liquidation under distress, but the current case focuses on potential contract breaches, which could influence international norms and trigger scrutiny of crypto lending agreements.
The ongoing lawsuit between Celsius and Tether may have significant implications for the future of crypto contracts and their enforcement in legal settings.
