A US federal court has allowed Celsius Network to continue its lawsuit against Tether for $4 billion over the disputed liquidation of 39,500 $BTC in June 2022. Celsius accuses the stablecoin issuer $USDT of breaching the contract, claiming that Tether conducted a 'fire sale' without adhering to the 10-hour waiting period stipulated in the agreement. Amid the decline in Bitcoin's price to $20,656, Celsius's losses, at current prices ($107,000 per BTC), are estimated at $4 billion.
Tether attempted to contest the court's jurisdiction, citing its registration in the British Virgin Islands and Hong Kong, but the judge dismissed these arguments, pointing to the company's connections with the US. While the legal battle continues, Tether is actively increasing its Bitcoin reserves, becoming the third-largest corporate holder of BTC after acquiring Twenty One Capital.
This lawsuit could become one of the loudest in the history of the crypto industry, impacting Tether's reputation and trust in stablecoins. The market is closely monitoring developments, as the decision could affect Bitcoin's price and cryptocurrency regulation.
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