Celsius Network has initiated a lawsuit against Tether, alleging that Tether improperly managed its Bitcoin collateral and is now seeking approximately $3.5 billion in damages, legal fees, and returns. The dispute arises from Celsius’ bankruptcy proceedings, during which Celsius provided Tether with 39,542.42 BTC as collateral for a loan backed by Tether’s stablecoin, USDT. As the value of Bitcoin fell, Celsius was required to provide additional collateral to avoid default.
Celsius contends that Tether liquidated its Bitcoin holdings at a price nearly equivalent to the debt, without giving Celsius the opportunity to provide more collateral. The lawsuit demands the return of 57,428.64 BTC, along with damages and legal costs, amounting to about $3.48 billion based on current Bitcoin prices. Tether disputes these claims, arguing that Celsius requested the liquidation during its bankruptcy. The outcome of this lawsuit could significantly impact both companies.
