Key Takeaways:
- Tether is contesting a $3.3 billion lawsuit from Celsius, which accuses Tether of fraudulent actions in a loan agreement.
- Celsius seeks the return of 57,428.64 Bitcoin, claiming Tether made “preferential and fraudulent transfers” during the 2022 market crash.
- Tether’s CEO, Paolo Ardoino, asserts that the lawsuit is a baseless money grab and reassures holders of Tether’s strong financial stability.
Tether is contesting a $3.3 billion lawsuit filed by the bankrupt crypto lender Celsius, which accuses Tether of fraudulently securing its position in a loan agreement.
Celsius is seeking the return of 57,428.64 Bitcoin or its equivalent value, claiming Tether made “preferential and fraudulent transfers” during the 2022 market crash.
Tether Will Defend Itself Against “Shake Down” Litigation Commenced by Celsius
— Tether (@Tether_to) August 10, 2024
Learn more: https://t.co/6qjXD84EXh
Tether argues the lawsuit is baseless, stating that it liquidated the Bitcoin at Celsius’ direction when Celsius failed to provide additional collateral as required.
Tether’s CEO, Paolo Ardoino, emphasized that the company will vigorously fight the lawsuit, which he sees as a money grab attempt.
In 2022, Tether made available USDt to some of its customers – including Celsius. Tether's arrangements with customers are very simple: Tether provides USDt to selected customers who provide an overcollateralization in Bitcoin.
— Paolo Ardoino 🤖🍐 (@paoloardoino) August 10, 2024
If the price of bitcoin (the collateral) falls… https://t.co/UuEs1ig8zr
Tether reassures its token holders that its financial stability is strong, with $12 billion in equity, and they will remain unaffected by the legal proceedings.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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