A US judge has permitted Celsius Network’s $4 billion lawsuit against Tether Limited and related entities to move forward. The legal action centers on the liquidation of over 39,500 Bitcoin (BTC) during a margin call triggered by plummeting BTC prices in June 2022.
The court’s refusal to dismiss the case affirms its jurisdiction within the United States. This decision is seen as potentially setting a precedent for how future cross-border cryptocurrency disputes involving US financial systems are adjudicated.
The lawsuit marks a significant escalation in regulatory and legal scrutiny faced by stablecoin issuers, representing a pivotal moment in cryptocurrency litigation. It underscores the increasing efforts to apply existing or emerging frameworks to large-scale crypto transactions.
Tether CEO Paolo Ardoino took to social media to express confidence in Tether’s position, describing the company as the “strongest in the space” and highlighting its valuation at over $500 billion. This statement coincided with news of Tether acquiring a majority stake in Bitcoin mining firm Northern Data Group subsidiary Twenty One, involving nearly 37,230 BTC valued around $3.9 billion.
The progression of this lawsuit ensures continued focus on the complex interplay between decentralized finance operations and regulatory oversight.