Fun

Celsius sues Tether seeking $3.5B over Bitcoin collateral selloff

News Feed - 2024-08-11 03:08:41

Tristan Greene5 hours agoCelsius sues Tether seeking $3.5B over Bitcoin collateral selloffThe assets in question were evidently given to Tether as collateral.1993 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onDefunct cryptocurrency exchange Celsius has filed a lawsuit against Tether alleging misappropriation of assets and seeking approximately $3.5 billion in BTC returns, damages, and legal fees. 


Up front: Tether reports that Celsius, in its lawsuit, seeks the return of approximately $2.4 billion worth of BTC. However, publicly available court documents show that Celsius has asked the court for relief in the amount of 57,428.64 BTC or its current market dollar equivalent, plus damages and legal fees.Celsius sues Tether


The lawsuit alleges that, during Celsius’ bankruptcy proceedings, Tether loaned it a specific amount of USDT (the company’s stablecoin, a cryptocurrency backed by the US dollar). In return for this loan, Celsius sent Tether 39,542.42 BTC in collateral.


As the price of Bitcoin dropped, and per the two parties’ agreement, Celsius was required to provide further collateral to avoid liquidation.


According to the lawsuit, Celsius claims Tether liquidated the BTC at a price point that almost exactly covered the debt without giving it the opportunity to provide additional collateral.Tether responds


According to Tether, the lawsuit is baseless. The company called the proceedings a “shake down” and pledged to “vigorously defend” itself against “unwarranted allegations” in a recent blog post.


Tether says that, rather than liquidating Celsius’ position in violation of their contract, it was Celsuis that requested the selloff after choosing not to provide additional collateral:“When Celsius chose not to post additional BTC it directed Tether to liquidate the BTC collateral Tether held in order to close out its roughly 815 million USD₮ position with Tether.”


While Tether has left no doubt about its commitment to fighting the suit, it’s also been quick to reassure USDT stakeholders. Citing its $12 billion in consolidated equity, the company stated that “even in the most remote scenario in which this baseless lawsuit will get somewhere, Tether token holders will not be impacted.”Damages


As mentioned above, the exact amount Celsius seeks appears to be in question. The number currently being reported throughout the crypto community, and cited in Tether’s blog post, accounts for 39,542.42 BTC, worth about $2.4 billion as of Aug. 10.


However, according to page 28 of the legal filing, the plaintiffs also want two other transfers made during the same period voided.


As part of the suit’s “prayer for relief,” the plaintiffs ask the court to “require Defendants to relinquish to Plaintiffs the 15,658.21 Bitcoin, 2,228.01 Bitcoin, and 39,542.42 Bitcoin preferentially transferred by Plaintiffs to Defendants” or its current dollar value.


Together, those three transfers amount to 57,428.64 Bitcoin. As of Aug. 10, at a price of $60,627 per BTC, Celsius is apparently seeking approximately $3.48 billion in Bitcoin.


Furthermore, the Celsius suit also seeks no less than $100 million in damages “plus additional damages to be determined at trial” and legal fees.


Related:MiCA regulation poses ‘systemic risk’ to banking system, says Tether CEO# Bitcoin# Bankruptcy# Court# Tether# CelsiusAdd reaction

News Feed

Litecoin Price Shows Resilience In Uncertain Market Conditions — What’s Next For LTC?
Este artículo también está disponible en español. The Litecoin price has been one of the better-performing assets since a wave of bearish pressure swept the market this
Moxy․io Introduces the ‘Play and Earn’ Concept Ahead of Moxy Club Pre-Launch
Moxy․io Introduces the ‘Play and Earn’ Concept Ahead of Moxy Club Pre-Launch press release PRESS RELEASE.The Moxy.io team has built a team consisting of several veterans from
Hollywood union deal with music giants guards against AI use
Amaka Nwaokocha50 minutes agoHollywood union deal with music giants guards against AI useThe proposed agreement with record labels mandates consent and compensation before releasing songs featuring digital replicas of ar
Marcel Pechman3 hours agoBitcoin price is down, but data signals that $30K and above is the path of least resistanceEven with a price correction to $29,000, several Bitcoin price metrics show traders casting bets on a qu
Boxing Legend Mike Tyson Says He’s ‘All in’ on Solana Crypto — Asks Fans How High SOL Will Go
Boxing Legend Mike Tyson Says He"s "All in" on Solana Crypto — Asks Fans How High SOL Will Go Boxing legend Mike Tyson, aka “Iron Mike,” says he is “all in o
Coinbase Acquires Fairx Exchange to Make Derivatives Market Approachable for Millions of Retail Customers
Coinbase Acquires Fairx Exchange to Make Derivatives Market Approachable for Millions of Retail Customers Nasdaq-listed cryptocurrency exchange Coinbase has acquired a regulated de
Ethereum Trades Inside A Multi-Year Bullish Pennant – Analyst Sees A Breakout Above $4K
Este artículo también está disponible en español. Ethereum experienced one of the craziest days in its history last Monday, plunging over 30% in less than 24 hours amid w
Bollinger Bands Tighten On XRP Daily Chart – Major Price Move Ahead?
Este artículo también está disponible en español. XRP has faced significant selling pressure over the past several hours, causing the price to dip to new local lows aroun
Crypto Experts Predict Bitcoin Price Rising to $318,417 by December 2025
Crypto Experts Predict Bitcoin Price Rising to $318,417 by December 2025 A panel of crypto experts has predicted that the price of bitcoin will rise to $318,417
Venezuelan Government Approves New Tax for Cryptocurrency and Foreign Currency Transactions
Venezuelan Government Approves New Tax for Cryptocurrency and Foreign Currency Transactions The Venezuelan Government has approved a new tax that would affect transactions made in
Iran is giving $24 to anyone who reports illegal crypto miners
Jesse Coghlan3 hours agoIran is giving $24 to anyone who reports illegal crypto minersThe chief of Iran’s state-run electricity company said some had exploited subsidized electricity to run crypto mining operations, st
KPMG to help US crypto firms uphold reporting standards
Arijit Sarkar31 minutes agoKPMG to help US crypto firms uphold reporting standardsKPMG formed a strategic alliance with Cryptio to help crypto firms in the United States adhere to GAAP compliance, enhancing accounting an