Celsius Sues Tether for $3.5 Billion in Bitcoin
Celsius crypto exchange has filed a lawsuit against Tether claiming that the stablecoin company mishandled its assets. Celsius is asking for $3.5 billion in Bitcoin, along with damages and legal fees.
According to the lawsuit, the issue began during Celsius’ bankruptcy. Celsius claimed that it borrowed USDT, Tether’s digital currency, in exchange for providing 39,542.42 BTC as collateral.
When the price of Bitcoin dropped, Celsius was supposed to provide additional collateral to avoid losing the Bitcoin. According to Celsius, Tether did not allow this and instead liquidated the Bitcoin at a price that nearly matched the debt owed.
Celsius is now asking for the return of 57,428.64 BTC, which includes other Bitcoin transfers made during this time. The total amount sought in the lawsuit is about $3.48 billion, based on Bitcoin’s price as of August 10.
However, Tether has denied these allegations, describing the lawsuit as “baseless.” According to Tether, it was Celsius who chose not to provide the extra collateral and instructed Tether to sell the Bitcoin.
Tether has stated that it will “vigorously defend” against these allegations and reassured USDT holders that the lawsuit will not impact them, citing its $12 billion in consolidated equity as a safeguard.