A US bankruptcy judge has allowed Celsius Network's lawsuit against Tether to move forward, partially rejecting Tether's bid to dismiss claims regarding the alleged improper liquidation of Celsius's Bitcoin collateral during its financial collapse. Celsius accuses Tether of conducting a 'fire sale' of over 39,500 Bitcoin in June 2022, using the proceeds to offset Celsius's $812 million debt without adhering to agreed procedures. The lawsuit claims Tether breached their lending agreement and violated good faith under British Virgin Islands law, while also constituting fraudulent transfers under US Bankruptcy Code. Celsius contends that Tether sold its collateral prematurely, liquidating Bitcoin at an average price of $20,656, which was below market value, resulting in a loss exceeding $4 billion. The judge found that Celsius presented a credible case for US jurisdiction, dismissing Tether's argument against the application of US bankruptcy law. Despite some claims being dismissed, key allegations regarding breach of contract and fraudulent transfers will proceed. Read more AI-generated news on: https://app.chaingpt.org/news

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