Summary
- Celsius announced that it will proceed with a lawsuit involving about $4 billion in Bitcoin against Tether in the United States Court.
- The lawsuit is cited to be based on suspicions that, during the 2022 Terra and Luna crash, Tether wrongfully liquidated 39,500 Bitcoin belonging to Celsius.
- Celsius claimed Tether sold the collateral without observing the waiting period required by their loan contract, while Tether maintained the liquidation was done following Celsius’s instructions.
The cryptocurrency platform Celsius has entered full judicial proceedings in the United States Court for its $4 billion (USD) lawsuit against the stablecoin issuer Tether (USDT).
According to Unchained on the 3rd (local time), Martin Glenn, a U.S. bankruptcy court judge, ruled that Celsius can proceed with the lawsuit it filed.
This lawsuit was initiated on suspicions that, during the major Terra and Luna crash of June 2022, Terra wrongfully liquidated 39,500 Bitcoin (BTC) belonging to Celsius—held as collateral—amounting to roughly $4,325,000,000.
Previously, in August, Celsius asserted that Tether violated their lending contract by selling the Bitcoin collateral before the contractually required 10-hour waiting period had elapsed. In response, Paolo Ardoino, CEO of Tether, insisted, "Tether liquidated and returned the Bitcoin following Celsius's instructions."
Heecheol Yang
heecheol@bloomingbit.ioHello, I'm a reporter at bloomingbit
