Celsius sues Tether for over $2 billion worth of Bitcoin
According to their agreement, Celsius was supposed to put up more BTC to keep the deal alive. Instead, Celsius told Tether to sell off the BTC collateral to cover an $815 million USDT position
Celsius Network Limited has decided to take on Tether in court, demanding more than $2 billion worth of Bitcoin.
The lawsuit was filed yesterday through the Blockchain Recovery Investment Consortium, LLC, and targets Tether Limited along with several of its affiliates.
The battleground is set in the United States Bankruptcy Court for the Southern District of New York.
The drama between Celsius and Tether traces back to a deal they struck in 2022. At the time, Celsius borrowed USDT from Tether, putting up BTC as collateral. But things took a nosedive in June 2022 when Bitcoin prices dropped like a rock.
According to their agreement, Celsius was supposed to put up more BTC to keep the deal alive. Instead, Celsius told Tether to sell off the BTC collateral to cover an $815 million USDT position.
The claims and Tether’s response
Now, Celsius is coming back with a legal hammer, trying to claw back around $2.4 billion in BTC from Tether, even though they directed the sale of that Bitcoin themselves.
Tether is calling the lawsuit a “shameless money grab,” claiming it’s just an attempt to dump Celsius’ problems onto its shoulders.
According to Tether, this lawsuit completely ignores the reality of the agreement they both signed and is built on a “misapplication of the law.”
