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Celsius sues tether for $3 5 billion over bitcoin collateral dispute
Celsius sues tether for $3 5 billion over bitcoin collateral dispute

Finance

Celsius Sues Tether for $3.5 Billion Over Bitcoin Collateral Dispute

Celsius Network is suing Tether because it says Tether mismanaged Bitcoin security and wants $3.5 billion in damages, legal fees, and collateral returns. Tether is being accused of selling Celsius’ Bitcoin holdings while the company was bankrupt, without giving Celsius a chance to add more security..

Celsius Network has initiated a lawsuit against Tether, alleging that Tether improperly managed its Bitcoin collateral and is now seeking approximately $3.5 billion in damages, legal fees, and returns. The dispute arises from Celsius’ bankruptcy proceedings, during which Celsius provided Tether with 39,542.42 BTC as collateral for a loan backed by Tether’s stablecoin, USDT. As the value of Bitcoin fell, Celsius was required to provide additional collateral to avoid default.

Celsius contends that Tether liquidated its Bitcoin holdings at a price nearly equivalent to the debt, without giving Celsius the opportunity to provide more collateral. The lawsuit demands the return of 57,428.64 BTC, along with damages and legal costs, amounting to about $3.48 billion based on current Bitcoin prices. Tether disputes these claims, arguing that Celsius requested the liquidation during its bankruptcy. The outcome of this lawsuit could significantly impact both companies.

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Satpal S
Satpal is an Editor and Author at 4C Media Co, specializing in all stories and news related to crypto and finance.
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