Ongoing Battle Over 40,000 BTC: Judge Greenlights Celsius's Legal Case Against Tether

A U.S. bankruptcy judge has permitted Celsius Network to proceed with its $4.3 billion lawsuit against Tether, centered around allegations that Tether improperly sold nearly 40,000 Bitcoin in June 2022. Celsius accused Tether of conducting a "fire sale" of more than 39,500 BTC and applying the proceeds to a $812 million debt, a move it claims was done without following agreed-upon procedures and resulted in losses exceeding $4 billion.

Judge Martin Glenn ruled that the alleged verbal permission from the then Celsius CEO to liquidate the collateral was "insufficient", and that negligence to observe a 10-hour grace period for posting collateral could still be viewed as a breach. However, the judge dismissed some components of the lawsuit, including claims against certain Tether entities due to a lack of personal jurisdiction.