In a high-stakes legal battle shaking the crypto world, Celsius Network has secured a crucial win in its $4 billion lawsuit against Tether, setting the stage for a courtroom clash over one of the industry’s most controversial collapses.
A U.S. bankruptcy judge just handed Celsius a pivotal advantage, rejecting Tether’s bid to dismiss core allegations in the case. The decision not only keeps the lawsuit alive but could redefine how offshore crypto giants are held accountable in American courts.
The $4 Billion Bitcoin “Fire Sale” Controversy
At the heart of the dispute is Tether’s alleged rushed liquidation of 39,500 Bitcoin (worth roughly $4 billion today) during Celsius’s 2022 meltdown. Court filings reveal Tether sold the BTC at an average price of $20,656—far below market rates—just as crypto markets were crashing.
Celsius claims Tether violated their agreement by:
🔹 Ignoring a mandatory 10-hour waiting period before selling.
🔹 Failing to provide proper notice, worsening Celsius’s financial spiral.
🔹 Moving the BTC to Bitfinex, its sister company, raising questions about self-dealing.
The embattled lender argues this was a breach of contract, fraudulent transfer, and preferential treatment under U.S. bankruptcy law.
Tether’s Jurisdiction Defense Crumbles
Tether tried to dodge U.S. legal scrutiny by arguing it operates exclusively overseas (Hong Kong and the British Virgin Islands). But the judge ruled that Tether’s U.S.-based banking, communications, and personnel tied its actions to American jurisdiction—a landmark decision for global crypto regulation.
While minor claims were dismissed, Celsius can now pursue its biggest accusations, including:
✔ Breach of contract
✔ Fraudulent transfers
✔ Preferential asset movements
Why This Case Could Reshape Crypto
Beyond the $4 billion at stake, this lawsuit could set critical precedents for:
🔹 Stablecoin accountability– How issuers like Tether handle collateral in crises.
🔹 Cross-border crypto lending– Whether offshore firms can evade U.S. laws.
🔹 Bitcoin custody disputes – Protocols for liquidations during market chaos.
Tether’s Bold Moves Amid Legal Storm
Despite the lawsuit, Tether isn’t backing down. Recent power plays include:
🔹 Acquiring a majority stake in Jack Mallers’ Twenty One Capital, linking it to the third-largest corporate Bitcoin holder.
🔹 Moving 37,230 BTC ($3.9B) to its own wallets, tightening its grip on Bitcoin markets.
🔹 Shooting down IPO rumors—CEO Paolo Ardoino denies plans for a $500B public listing, despite speculation.
What’s Coming Next?
With the case moving forward, Celsius aims to prove Tether’s actions deepened its collapse—and recover billions in damages. If successful, it could trigger a wave of similar lawsuits against major crypto players.
Stay tuned—we’ll bring you the latest twists in this crypto legal thriller.
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