Key Takeaways
- Celsius is suing Tether for $3.5 billion over Bitcoin liquidation.
- The lawsuit involves 57,428.64 BTC, worth $3.48 billion as of August 10.
- Tether claims Celsius requested the Bitcoin sale, disputing the allegations.
Defunct exchange Celsius has filed a lawsuit against Tether, seeking $3.5 billion in Bitcoin returns, damages, and legal fees.
The lawsuit centers on bitcoin that Celsius provided to Tether as collateral during its bankruptcy proceedings.
Details
According to court documents, Celsius initially transferred 39,542.42 BTC to Tether in exchange for a loan of Tether’s USDT stablecoin.
Under their agreement, Celsius was required to provide additional collateral if the price of Bitcoin dropped. Celsius alleges that Tether liquidated the collateral without giving it the chance to post more Bitcoin, allegedly covering the debt amount but leaving Celsius out of pocket.
Tether denis
Tether has strongly denied the claims, labeling the lawsuit as a “shake down.”
In a blog post, the company stated that Celsius itself requested the Bitcoin liquidation after opting not to provide further collateral. Tether further assured USDT holders that its $12 billion in consolidated equity ensures the lawsuit will not impact them.
Celsius is reportedly seeking the return of 57,428.64 bitcoin, worth about $3.48 billion as of August 10, along with at least $100 million in damages.
