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Celsius Network has gained a crucial victory in its ongoing legal dispute with Tether Limited, allowing it to proceed with multiple claims for recovery of over 57,000 Bitcoins (BTC) worth approximately $4 billion. The court’s decision is seen as a significant step forward in the ongoing battle between the two companies.
The judgment comes after Celsius Network accused Tether of violating US bankruptcy laws by receiving preferential transfers and unjustly liquidating tens of thousands of Bitcoin during the weeks leading up to Celsius’ collapse in 2022. This alleged breach in contract terms has potentially impacted $4 billion worth of assets, as stated by Celsius.
In its filing, Celsius argued that Tether’s action was a direct violation of the bankruptcy laws, thereby entitling Celsius to recover these seized or prematurely liquidated assets. The court has now allowed Celsius to pursue allegations related to these claims.
One aspect of this case is the disputed 15,658.21 BTC, which Celsius claims were either improperly seized or liquidated prematurely, or transferred in excess of agreed terms. Additionally, Tether’s sale of approximately 39,542.42 BTC on June 13, 2022, without honoring a contractual notice period of ten hours was deemed an unfair improvement in the creditor’s position.
The court has dismissed certain claims against specific Tether entities due to a lack of personal jurisdiction and allegations that rely on applying US bankruptcy law outside the country. Furthermore, Celsius failed to prove Tether breached duties under British Virgin Islands law regarding good faith and fair dealing.
Despite these rejections, the ruling grants Celsius a green light to pursue what could become one of the most consequential asset recovery cases in the crypto industry.
Source: cryptoslate.com
