- It appears that Tether received the aforementioned assets as collateral.
The now-defunct cryptocurrency exchange Celsius has sued Tether, claiming that funds were misappropriated. The lawsuit is seeking about $3.5 billion in damages, legal fees, and BTC restitution.
According to Tether, Celsius is requesting the return of around $2.4 billion worth of Bitcoin in its lawsuit. Nonetheless, Celsius has requested relief from the court in the amount of 57,428.64 BTC, or its current market dollar equivalent, plus damages and legal costs, according to publicly accessible court filings.
Tether is sued by Celsius
According to the lawsuit, Tether loaned Celsius a certain quantity of Tether—the stablecoin backed by US dollars—during the company’s bankruptcy procedures. Celsius submitted Tether 39,542.42 BTC as collateral in exchange for this loan.
Celsius was obligated under the two parties’ agreement to submit further collateral in order to prevent liquidation when the price of Bitcoin declined.
Celsius alleges in the lawsuit that Tether sold the Bitcoin at a price that nearly exactly paid off the debt without offering it a chance to offer more security.
Tether reacts
Tether claims the complaint has no merit. In a recent blog post, the corporation referred to the proceedings as a “shake down” and vowed to fiercely defend itself against unfounded accusations.
Tether has been fast to reassure USDT stakeholders despite making it clear that it will fight the lawsuit. Tether token holders will not be damaged, even in the most unlikely event that this ludicrous action succeeds, the business said, citing its $12 billion in consolidated equity.
Damages
The precise amount Celsius seeks seems to be in doubt, as was previously mentioned. As of August 10, the amount mentioned in Tether’s blog post and widely publicized in the cryptocurrency world amounts to 39,542.42 BTC, or almost $2.4 billion.
On page 28 of the court document, however, the plaintiffs also want the voidance of two further transfers that were made within the same time frame.
The plaintiffs urge the court to order Defendants to give up to them the 15,658.21 Bitcoin, 2,228.01 Bitcoin, and 39,542.42 Bitcoin that they preferentially transferred to Defendants, or the equivalent in current US dollars, as part of their plea for relief in the lawsuit.
These three transfers total 57,428.64 Bitcoin when combined. At $60,627 per Bitcoin as of August 10, Celsius appears to be requesting about $3.48 billion in Bitcoin.
In addition, the Celsius lawsuit demands legal fees, additional damages to be decided at trial, and at least $100 million in damages.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
