Key Takeaways:
- Celsius has filed a lawsuit against Tether, seeking nearly $3.5 billion in damages over the alleged misappropriation of Bitcoin collateral.
- The dispute centers on 57,428.64 BTC, with Celsius claiming entitlement, while Tether asserts the amount is closer to $2.4 billion.
- Tether has dismissed the lawsuit as baseless, arguing that Celsius directed the liquidation of the BTC collateral.
Celsius, a defunct cryptocurrency exchange, has filed a lawsuit against Tether, accusing the stablecoin issuer of misappropriating Bitcoin collateral and seeking nearly $3.5 billion in damages and returns.
The dispute involves 57,428.64 BTC, which Celsius claims it is entitled to recover, while Tether argues the amount is closer to $2.4 billion.
JUST IN: Celsius has filed a massive lawsuit against Tether, demanding over $2.4 billion worth of #Bitcoin.#Celsius claims #Tether breached its token agreement with Celsius when it applied the company’s property (Bitcoin) held as collateral to pay itself for Celsius’s… pic.twitter.com/M88kvebe2R
— Jacob King (@JacobKinge) August 10, 2024
The lawsuit stems from an agreement where Celsius provided Bitcoin as collateral for a loan in Tether’s USDT.
Celsius alleges that Tether liquidated the BTC without allowing them to add more collateral, resulting in a significant financial loss.
Tether has dismissed the lawsuit as baseless, asserting that Celsius directed the liquidation.
The outcome of this case could significantly impact both companies.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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