Tether has firmly denied the claims made in a lawsuit filed by Celsius Network Limited regarding a Bitcoin liquidation dispute. The lawsuit, seeking the recovery of $2.4 billion worth of BTC collateral, alleges that Tether wrongfully liquidated the collateral in June 2022. However, Tether refutes these claims, stating that the liquidation was done with Celsius’ consent and direction at the time.
This legal battle stems from an agreement made in 2022, where Tether provided USDT to Celsius, with Bitcoin as collateral. When the price of Bitcoin dropped in June 2022, Celsius faced a margin call and was required to provide additional collateral to avoid liquidation. Tether asserts that Celsius chose not to provide additional collateral and instead instructed Tether to liquidate the BTC collateral to settle its USDT position.
In response to the lawsuit, Tether released a press statement calling the claims baseless and a meritless shakedown. The company believes that the lawsuit is an attempt to shift blame for Celsius’ financial troubles onto Tether. Tether maintains that it will vigorously defend itself in court and expects a favorable outcome.
This legal dispute highlights the complexities of agreements in the cryptocurrency world and the potential for disagreements to arise when market conditions change. Tether’s stance on the lawsuit underscores the importance of upholding contractual agreements and holding parties accountable for their decisions.
As the case unfolds in court, the cryptocurrency community will be watching closely to see how the dispute between Tether and Celsius is resolved. This legal battle serves as a reminder of the challenges and uncertainties that can arise in the rapidly evolving world of digital assets.