Celsius Allowed to Sue Tether for $4 Billion Due to Bitcoin

On July 3, 2025, a U.S. bankruptcy judge allowed #Celsius , the bankrupt crypto lending company, to continue suing Tether for $4 billion due to improper liquidation of 39,500 Bitcoin (~$4 billion, BTC price ~$106,000, CoinGecko) as collateral in 2022. Celsius accused #Tether of breaching the contract and not adhering to the 10-hour waiting period. The judge dismissed some allegations related to Tether's branch in the British Virgin Islands. The lawsuit, described as “baseless” by Tether, could impact cross-border crypto disputes. Celsius has distributed $2.5 billion to 251,000 creditors, achieving 93% of the claims. The case highlights the need for clear contracts and reinforces the role of regulation in DeFi and blockchain.

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