Legal disputes in the cryptocurrency space are ongoing. A judge has ruled that Celsius's lawsuit against Tether can proceed, despite Tether's attempts to dismiss the case. Meanwhile, new charges have been filed against North Korean individuals and sanctions imposed on Russian entities.
Celsius Lawsuit Against Tether
A US bankruptcy judge ruled that Celsius Network’s multibillion-dollar lawsuit against Tether can proceed, rejecting key parts of Tether’s motion to dismiss. Celsius accuses Tether of improperly liquidating more than 39,500 Bitcoin belonging to Celsius during the crypto lender’s collapse in June 2022. The company alleges Tether acted in bad faith by executing a fire sale at an average price of $20,656, below market value, and applying the proceeds to an $812 million loan without observing a mandatory 10-hour waiting period. The judge agreed that the case had enough domestic ties to counter Tether’s claim of overreaching US jurisdiction.
Charges Against North Koreans
In other news, four North Korean nationals have been charged in Georgia with wire fraud and money laundering after allegedly infiltrating US and Serbian blockchain companies by posing as remote IT workers and stealing nearly $1 million in cryptocurrency. The DOJ named the defendants as Kim Kwang Jin, Kang Tae Bok, Jong Pong Ju, and Chang Nam Il, who used stolen and fake identities. Once embedded in the companies, they exploited their access to steal funds.
Sanctions on Aeza Group
The US Treasury has also imposed sanctions on the Russia-based Aeza Group for allegedly aiding cybercriminal operations. Aeza Group provided specialized servers and infrastructure for ransomware groups, facilitating campaigns that targeted victims globally. The sanctions freeze any US assets linked to Aeza and its executives and prohibit US persons from conducting business with these entities.
The cryptocurrency sector is experiencing significant events with emerging lawsuits and accusations, highlighting the need for regulatory oversight in this fast-evolving industry.
