Welcome to Extreme Investor Network, where we bring you the latest news and insights in the world of crypto, blockchain, and cryptocurrency. Today, we dive into a significant legal battle between two giants in the industry: Tether and Celsius Network.
On August 9, 2024, Celsius Network Limited, represented by the Blockchain Recovery Investment Consortium, LLC, filed a $2.4 billion lawsuit against Tether Limited and its affiliates in the United States Bankruptcy Court for the Southern District of New York. The lawsuit revolves around a 2022 agreement where Tether provided USD₮ to Celsius, backed by Bitcoin (BTC) collateral. When BTC’s price dropped in June 2022, Celsius failed to provide additional collateral, leading to the liquidation of approximately $815 million worth of BTC.
Celsius is now seeking the return of $2.4 billion worth of BTC, despite having consented to the liquidation at June 2022 prices. Tether has categorically denied the claims, labeling the lawsuit as baseless and an attempt by Celsius to shift the costs of their mismanagement onto Tether.
Tether has vowed to defend against the claims in court, emphasizing the strong financial standing of the company with nearly $12 billion in consolidated equity as of June 30, 2024. They have reassured Tether token holders that even if the claims were valid, it would not impact them.
This legal battle comes at a crucial time for the cryptocurrency market, where regulatory and legal developments are closely monitored. Tether’s commitment to defending itself could set a precedent for similar cases in the future.
As the case progresses, market participants will be watching closely to see how the court’s decisions could impact both companies involved and the broader crypto ecosystem. Stay tuned to Extreme Investor Network for further updates on this intriguing legal dispute.
Make sure to bookmark our site for more exclusive content and in-depth analysis on all things crypto and blockchain. Thank you for choosing Extreme Investor Network as your go-to source for cutting-edge information in the world of investments and digital assets.