Celsius, a bankrupt crypto platform, has sued Tether, accusing them of mishandling assets during the Celsius bankruptcy. Celsius is seeking to recover about $3.5 billion.
The lawsuit claims that Tether lent Celsius a certain amount of USDT, backed by U.S. dollars, and in return, Celsius gave Tether 39,542.42 Bitcoin as collateral. When Bitcoin’s price dropped, Celsius was supposed to add more collateral to prevent liquidation. However, the lawsuit alleges that Tether sold the Bitcoin without giving Celsius a chance to provide more.
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Tether’s Response To The Crypto Platform
Tether has dismissed the lawsuit, calling it baseless and an attempt to unfairly obtain money. Tether explained that Celsius was required to provide additional collateral to avoid liquidation. When Celsius did not provide the extra Bitcoin, Tether says that Celsius directed them to sell the Bitcoin collateral to close out its position, which was worth about $815 million in USDT.
Tether assured its USDT holders that its $12 billion in equity would protect them, even if the lawsuit continues.
Celsius is demanding the return of 57,428.64 Bitcoin, or its value in U.S. dollars, which is about $3.48 billion as of August 10. This amount includes three separate transfers made during that period. Celsius is also seeking at least $100 million in damages, with the exact amount to be determined in court.
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