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A U.S. bankruptcy court has permitted Celsius to pursue a lawsuit worth approximately $4 billion against Tether over the sale of Bitcoin (BTC). This development raises questions regarding contract terms and timing, as stated in a recent article.
Celsius had accused Tether of breaching its agreement by prematurely liquidating 39,500 BTC held as collateral for an $812 million loan that Celsius defaulted on. According to reports, Celsius believes that the sale violated a contractual 10-hour waiting period specified in the agreement with Tether. The court has now allowed Celsius to proceed with its claims against Tether.
This lawsuit represents one of the most significant ongoing disputes involving Tether, and has crucial implications for crypto-backed lending agreements. Celsius is adamant that enforcing contract terms remains essential even after insolvency. On the other hand, Tether’s CEO has referred to the lawsuit as meritless, signaling that the company will defend its position vigorously.
The court’s ruling suggests there is sufficient merit in Celsius’ claim to warrant a full hearing, and both parties prepare for discovery.
Source: coincentral.com
