Judge Greenlights Celsius’s $4B Showdown With Tether

Key Points

1. The judge denied Tether's jurisdictional challenge, allowing Celsius's claims of breach of contract, fraudulent transfer, and preference allegations to move forward.

2. Celsius alleges Tether sold over 39,500 Bitcoin in June 2022 without adhering to a required 10-hour waiting period, liquidating at an average price of $20,656.

3. Celsius claims Tether's actions involved US-based communications, personnel, and bank accounts, justifying US court jurisdiction.

4. Celsius filed for bankruptcy in July 2022, leaving around $4.7 billion in user assets locked on the platform.

5. Former Celsius CEO Alex Mashinsky faces a 20-year prison sentence sought by the DOJ for fraud and was barred from claiming any share of the bankruptcy proceeds.