NY Bankruptcy Judge Gives Celsius the Green Light to Pursue $4.3B Lawsuit Against Tether
2025-07-02 21:48:34
Main Idea
A New York bankruptcy court has allowed Celsius to proceed with a $4.3 billion lawsuit against Tether, alleging improper liquidation of Bitcoin collateral.
Key Points
1. Celsius accuses Tether of improperly liquidating nearly 40,000 bitcoins (worth over $4.3 billion) held as loan collateral in June 2022.
2. Tether has dismissed the lawsuit as a 'shakedown' and claims Celsius' mismanagement led to the situation.
3. The court ruled that Celsius' then-CEO Alex Mashinsky's alleged oral permission for the liquidation was insufficient and that Celsius was not given the agreed 10-hour window to post collateral.
4. Chief Bankruptcy Judge Martin Glenn dismissed one count of the complaint (breach of 'covenant of good faith and fair dealing') without prejudice, allowing Celsius to potentially refile.
5. The lawsuit highlights ongoing legal disputes between Celsius and Tether, with significant financial implications.
Description
A New York bankruptcy court has given Celsius the go-ahead to pursue the bulk of its $4 billion lawsuit against stablecoin issuer Tether, according to a recent court filing . The bankrupt crypto lender filed suit against Tether last year, alleging that Tether improperly liquidated nearly 40,000 bitcoins — worth over $4.3 billion at today’s prices — that it was holding as loan collateral in June 2022, shortly before Celsius halted withdrawals. In their suit, Celsius’ lawyers argued that Tether di...
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