A federal bankruptcy judge ruled June 30 that Celsius Network‘s $4 billion lawsuit against stablecoin issuer Tether can proceed, rejecting the company’s dismissal motion nearly a year after the case was filed, according to court documents and financial news reports.
Celsius filed the lawsuit in August 2024, alleging Tether improperly sold 39,500 Bitcoin at $20,656 per coin during the crypto lender’s June 2022 collapse — well below market value and without required notice, according to multiple reports. The company claims this resulted in $4 billion in losses at current Bitcoin prices.
The court allowed major allegations to proceed, including contract violations and fraudulent transfers, while dismissing Tether’s jurisdictional challenge, according to Invezz. The judge determined Tether’s US-based operations gave American courts authority over the case.
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Tether called the lawsuit “baseless” and a “contrived, meritless shakedown” in an August 2024 statement responding to the case, arguing Celsius directed the liquidation after failing to post additional collateral during the 2022 market crash.
“This lawsuit incredibly now seeks the return of approximately US$2.4 billion worth of BTC from Tether, despite the BTC being liquidated at Celsius’ direction and with Celsius’ consent,” the company said in its August statement.
Tether noted it maintains nearly $12 billion in equity, stating that even in a worst-case scenario, “Tether token holders will not be impacted.” The company has not issued any new public statements regarding the judge’s June 30 ruling.
With the dismissal motion rejected, the litigation advances toward what industry observers expect could become a landmark crypto legal dispute.
Related: Celsius Founder Sentenced to 12 Years for Fraud
Information for this story was found via Bloomberg and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
