Defunct cryptocurrency exchange Celsius has filed a lawsuit against Tether, alleging that Tether misappropriated its assets and is seeking the return of approximately $3.5 billion in BTC, damages, and legal fees.
Preliminary report: Tether reportIn the lawsuit, Celsius is seeking approximately $2.4 billion in BTC. However, publicly available court documents show that Celsius is asking the court for relief in the amount of 57,428.64 BTC, or the current market dollar equivalent, plus damages and legal fees.
LitigationspecifyDuring Celsius’s bankruptcy proceedings, Tether lent a sum of USDT. In exchange for the loan, Celsius sent 39,542.42 BTC as collateral to Tether.
But as the price of Bitcoin dropped, and as per the agreement between the two parties, Celsius was required to provide additional collateral to avoid liquidation. According to the lawsuit, Celsius claims that Tether liquidated BTC at a price that almost covered the debt without providing the opportunity to provide additional collateral.
Tether counters
Tether said the lawsuit was groundless, with the company saying:CallThe lawsuit was called “extortion” and it vowed to “vigorously defend itself” against “unreasonable allegations.”
Tether said that instead of liquidating Celsius in breach of contract, Celsuis requested a sale after choosing not to provide additional collateral.
“When Celsius decided not to provide additional collateral, it ordered Tether to liquidate its BTC collateral holdings to close out its approximately $815 million position with Tether.”
While Tether has made no bones about its commitment to fighting the lawsuit, the company was quick to reassure USDT holders, citing the company’s $12 billion total equity and stating that “even in the remotest case that this baseless lawsuit comes to an end, Tether token holders will not be affected.”
As mentioned above, the exact figure Celsius is looking for seems questionable, with the figure currently being reported across the crypto community and cited in a Tether blog post being 39,542.42 BTC, worth around $2.4 billion as of August 10.
However, as it appears inComplaint documentOn page 28 of the Act, the plaintiff also wants two more transfers to occur during the same period.
The plaintiff asked the court to “demand that the defendant relinquish the Bitcoins in the amounts of 15,658.21 Bitcoin, 2,228.01 Bitcoin and 39,542.42 Bitcoin that the plaintiff transferred to the defendant in advance” to the plaintiff, or the current dollar value.
The three transfers totaled 57,428.64 Bitcoin as of August 10, at a price of $60,627 per BTC, which is worth around $3.48 billion. Celsius is also reportedly seeking no less than $100 million in damages, “plus additional damages to be determined in court” and legal fees.
refer : cointelegraph.com
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