Cryptocurrency exchange Celsius has filed a lawsuit against Tether , alleging misappropriation of assets and seeking approximately $3.5 billion in damages.
First of all: Tether reports that Celsius, in its lawsuit, wants to reclaim approximately $2.4 billion worth of BTC . However, public court documents show that Celsius is asking for 57,428.64 BTC or its equivalent in current USD, plus damages and legal fees.
Celsius sues Tether
The lawsuit alleges that, during Celsius' bankruptcy, Tether lent the company a specific amount of USDT (the company's stablecoin, a cryptocurrency backed by US dollars). In exchange for this loan, Celsius sent Tether 39,542.42 BTC as collateral.
As the price of Bitcoin drops and by mutual agreement, Celsius is required to provide additional collateral to avoid liquidation.
According to the lawsuit, Celsius claims Tether liquidated BTC at a price that was nearly enough to pay off the debt without giving them the opportunity to provide additional collateral.
Tether responds
According to Tether, the lawsuit is baseless. The company calls the proceedings were “imposing” and pledged to “vigorously defend” itself against “baseless allegations” in a recent blog post.
Tether said that instead of liquidating Celsius ’ position in breach of their contract, Celsuis itself requested a liquidation after deciding not to provide additional collateral:
When Celsius decided not to send more BTC, the company asked Tether to liquidate the BTC collateral it held to close out its approximately $815 million₮ position in Tether.
While Tether pledged to fight the lawsuit, the company was also quick to reassure USDT stakeholders. Citing its $12 billion in combined Capital , the company stated that “even in the most remote scenario where this baseless lawsuit goes anywhere, USDT holders will not be affected.”
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