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Celsius Gets Go-Ahead in Legal Battle to Recover $4 Billion in Bitcoin from Tether
A US Bankruptcy Court has ruled that Celsius Network may proceed with several claims against stablecoin issuer Tether, paving the way for a potential recovery of over $4 billion worth of Bitcoin. The court’s decision allows Celsius to pursue allegations that Tether breached contract terms by liquidating approximately 57,000 BTC, which could have been retained to support Celsius’ assets.
According to the ruling, the court dismissed some claims and allowed others to proceed, including allegations that Tether received preferential transfers and unfairly liquidated a substantial portion of Celsius’ collateral. These actions potentially impacted $4 billion in assets. The decision grants Celsius an opportunity to recover these assets as part of its bankruptcy proceedings.
The court also permitted Celsius to pursue breach of contract claims regarding the early liquidation of collateral, despite a 10-hour notice period outlined in the firm’s amended loan agreement. Notably, the court declined to dismiss Counts I and II on avoidance of preferential transfers and counts V and VI regarding fraudulent transfer claims.
Celsius had initially sought $4 billion in damages from Tether for allegedly breaching contract terms by liquidating a substantial portion of Celsius’ collateral. The ruling allows the company to pursue these allegations, potentially securing billions in Bitcoin recovery.
Source: cryptoslate.com
