according to materials from the site - By CoinPedia News

Celsius Network has just received the green light to sue Tether in one of the largest disputes in recent cryptocurrency history — a $4 billion lawsuit related to the liquidation of Bitcoin during the Celsius collapse in 2022.
A U.S. bankruptcy judge has allowed the case to proceed, dismissing key parts of Tether's attempt to dismiss it. The decision could have long-term implications for how global crypto companies are held accountable in U.S. courts, especially when billions are at stake.

Here are the details.

Tether's 'Fire Sale' of Bitcoin Under Scrutiny
The case dates back to June 2022, when Celsius was already under pressure due to the collapse of cryptocurrency markets. Tether, which lent Celsius money, allegedly sold over 39,500 BTC at an average price of $20,656, significantly below the market value at the time. Celsius claims this was done without proper notice and in violation of a 10-hour waiting period that was part of their agreement.
Celsius claims that this move not only breached their contract but also amounted to fraudulent and preferential transfers under U.S. bankruptcy law. Celsius asserts that at today's prices, the early liquidation cost them Bitcoin worth over $4 billion.

BTC, according to court documents, were later transferred to Bitfinex, Tether's subsidiary.

Tether's jurisdiction argument is invalid
Tether attempted to have the case dismissed, arguing that the U.S. court lacked jurisdiction since the company is based in the British Virgin Islands and Hong Kong. But the judge disagreed.

The court ruled that Tether used personnel, bank accounts, and communications based in the U.S. in its dealings with Celsius to a sufficient degree to consider this activity 'domestic.' This ruling now opens the door for Celsius's lawsuit in the U.S., even though Tether operates overseas.

Some less serious claims were dismissed, but the judge allows Celsius to bring forward key allegations, including breach of contract, fraudulent transfer, and preferential transfer.

Significant implications for crypto lending and stablecoins
This is not just a legal battle between two crypto companies. The decision could impact how similar cases are treated in the future, especially regarding stablecoin issuers, asset custody, and cross-border lending practices.

If Celsius proves its claims, it could raise serious questions about how major players like Tether manage client assets during market stress.

Tether continues to expand despite legal pressure
While the legal battle is ongoing, Tether is not slowing down. The company recently acquired a controlling stake in Twenty One Capital, a firm connected to Strike CEO Jack Mallers. With this move, Tether is now linked to the third-largest corporate holder of Bitcoin in the world.

Tether also transferred approximately 37,230 BTC worth about $3.9 billion to addresses linked to the platform, further strengthening its position in the Bitcoin market.

Amid all this, CEO Paolo Ardoino denied rumors about Tether's initial public offering. Even though there are speculations about a potential $500 billion valuation, Ardoino stated that the company has 'no plans' to go public.
What's next?
The case is moving to the next stage, and Celsius intends to hold Tether accountable for what it considers a serious breach of trust.

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