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Celsius Cleared to Pursue $4B Lawsuit Against Tether Over BTC Sale
A U.S. bankruptcy court has authorized Celsius to proceed with a massive $4 billion lawsuit against Tether, sparking concerns about the implications of this dispute on the broader crypto ecosystem.
The cryptocurrency lending platform Celsius alleges that Tether breached a contract by prematurely liquidating 39,500 Bitcoin during its insolvency crisis in 2022. The liquidated Bitcoin was utilized to recover an $812 million loan that Celsius had defaulted on. According to Celsius, Tether’s actions contravened the agreed-upon 10-hour waiting period.
Despite Celsius’ argument that British Virgin Islands law should apply, U.S. jurisdiction has been ruled as governing the case. This restriction limits the legal framework under which Celsius can present evidence. Nevertheless, Celsius continues to push for a thorough examination of Tether’s actions, emphasizing the importance of enforcing contractual terms even in bankruptcy.
The dispute between Celsius and Tether is of significant interest due to its monetary magnitude and potential impact on crypto-backed lending agreements. The outcome of this high-profile battle will undoubtedly be monitored closely by the legal community and cryptocurrency enthusiasts alike.
A comprehensive understanding of contract terms and timing has become crucial for crypto participants, as they navigate this complex landscape of financial obligations amid insolvency.
Source: coincentral.com
