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Title: Celsius Cleared to Pursue $4B Lawsuit Against Tether Over BTC Sale
A United States bankruptcy court has granted Celsius permission to pursue a massive lawsuit against Tether, seeking damages of approximately $4 billion. The lawsuit centers on the alleged breach of contract by Tether in the liquidation of Bitcoin assets during Celsius’ insolvency crisis in 2022.
As per the allegations, Tether prematurely sold over 39,500 Bitcoin before the contractual waiting period of 10 hours had expired. This sudden sale, valued at $4 billion, was used to recover an $812 million loan that Celsius had defaulted on. The court’s decision will allow Celsius to demand records and internal communications from Tether in the next phase, which could shed more light on the decision-making process behind the massive Bitcoin liquidation.
The dispute has significant implications for crypto-backed lending agreements, highlighting the importance of enforcing contractual terms even after insolvency. In a statement, Tether’s CEO dismissed the lawsuit as meritless, indicating that the company will vigorously defend its stance. Despite this, the court’s ruling suggests that Celsius’ allegations have enough merit to warrant a thorough examination.
The legal community and crypto observers are now awaiting the outcome of this high-profile battle, which could potentially impact the broader crypto ecosystem.
Source: coincentral.com
