Celsius Sues Tether to Recover $2B in Bitcoin Lost in Alleged Fraudulent Transfers
- Celsius Network Ltd. has filed a lawsuit against Tether, alleging “fraudulent” and “preferential” transfers of Bitcoin worth over $2 billion.
- The complaint seeks to reclaim Bitcoin lost during the 90-day period preceding Celsius’ bankruptcy on July 13, 2022.
- Celsius claims Tether breached their loan agreement by demanding additional collateral and liquidating 39,542.42 BTC at a low market value.
In a notable breach, Tether allegedly ignored the 10-hour response window stipulated in their contract, leading to a “fire sale” of Celsius’ Bitcoin at undervalued prices, causing significant financial damage.
The outcome of this lawsuit could set a precedent for the treatment of collateral in crypto lending, potentially impacting future agreements and market practices.
