A U.S. court has authorized Celsius Network to advance its lawsuit against Tether, alleging the stablecoin issuer improperly liquidated 39,500 Bitcoin (then valued at approximately $4 billion) amid Celsius’s 2022 financial collapse. Celsius claims this action breached prior agreements and contributed to significant losses during its bankruptcy proceedings.
The ruling establishes a crucial precedent affirming U.S. courts’ jurisdiction over international cryptocurrency entities with substantial operational connections to the United States. This determination expands the legal framework for resolving cross-border disputes involving digital assets and may influence future cases.
Legal observers note that a successful outcome for Celsius could substantially augment asset recovery for its bankruptcy estate, potentially increasing funds available for distribution to creditors. The case has sharpened industry focus on counterparty risk management and regulatory safeguards during market turmoil.
The proceedings are anticipated to impact developing legal standards for accountability in decentralized finance, particularly concerning institutional obligations during crises. Analysts suggest the verdict could accelerate calls for stricter compliance protocols across crypto lending and stablecoin operations.