💲 In a dramatic turn for the cryptocurrency legal landscape, a New York court has granted Celsius permission to proceed with a $4 billion lawsuit against Tether, alleging a contentious “fire sale” of over 39,500 BTC in June 2022. ⚖️ Filed on July 2, 2025, the lawsuit claims Tether sold the Bitcoin—valued at approximately $800 million at the time—to offset Celsius’s $812 million debt, bypassing agreed procedures during Celsius’s bankruptcy proceedings. This ruling has reignited debates over stablecoin transparency and market manipulation. 📉


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🔍 Celsius argues that Tether’s unilateral action destabilized its financial position, exacerbating losses during a market downturn. 📊 The sale, executed when Bitcoin traded around $20,000, netted proceeds used to settle debts, but Celsius contends this violated contractual terms requiring mutual consent. Tether, the issuer of USDT with a $120 billion market cap, has yet to comment officially, though posts on X suggest growing public skepticism about its reserves. 🌍 The lawsuit’s scale—seeking $4 billion—reflects the stakes, with Celsius aiming to recover funds for creditors amid its ongoing restructuring.

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💰 The case highlights broader concerns about stablecoin operations. Regulatory scrutiny has intensified, with the SEC and CFTC probing Tether’s practices since 2021. 📈 Some analysts link this to a recent $220,000 USDC-to-USDT swap loss due to MEV (Miner Extractable Value) exploitation, underscoring vulnerabilities in stablecoin ecosystems. Celsius’s legal victory could set a precedent, pressuring Tether to disclose more about its Bitcoin holdings and redemption processes. 🚀 However, Tether’s defenders argue the sale was a legitimate debt settlement, and the court battle may drag on, given the company’s resources.

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🔧 The crypto community is divided. X sentiment ranges from calls for Tether’s accountability to skepticism about Celsius’s claims, given its own financial mismanagement. 📌 This development coincides with bullish market moves, like a whale buying 1,345 BTC worth $144 million on Binance, and Grayscale’s ETF conversion approval, suggesting a resilient market despite legal turbulence. Will Celsius prevail, or will Tether weather the storm? The outcome could reshape stablecoin trust and regulation.

#Celsius #Tether #CryptoLawsuit