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Fight for 40,000 BTC Continues: Judge Allows Celsius’s Lawsuit Against Tether to Proceed
A U.S. bankruptcy judge has ruled in favor of Celsius Network, allowing its lawsuit against Tether (USDT) to move forward. The ongoing dispute centers on a margin call issued by Tether during a decline in Bitcoin’s price three years ago, which resulted in the sale of nearly 40,000 BTC.
According to court documents filed in New York, Judge Martin Glenn rejected some claims and dismissed others but allowed the core lawsuit to continue. Celsius had accused Tether of improperly selling the large quantity of Bitcoin without adhering to agreed-upon procedures, leading to losses exceeding $4 billion based on current prices.
The judge’s decision was made public yesterday and marks a significant development in the ongoing legal battle between Celsius and Tether. The ruling comes as Celsius is currently repaying its creditors following its bankruptcy process, which concluded on January 31, 2024.
At the heart of the matter are allegations that Tether failed to observe a 10-hour grace period for posting collateral before selling the Bitcoin. This alleged failure has led Celsius to claim that the sale was unlawful and resulted in substantial losses.
Tether had previously attempted to have the lawsuit dismissed, arguing that U.S. courts lacked jurisdiction over the dispute and that Celsius’s claims were without legal basis. However, Judge Glenn disagreed with these assertions, finding that some of Celsius’ allegations do hold merit.
The case has significant implications for the cryptocurrency space as it highlights concerns around the stability of stablecoins such as USDT. The ongoing battle between two major players in the crypto industry serves as a stark reminder of the importance of transparency and trust within this rapidly evolving market.
With the core lawsuit allowed to proceed, both parties are likely to continue their legal battles in court.
Source: cryptopotato.com
