A losses in the United States have decided that the multibillion-dollar laws of the Celsius Network against Tether could continue, denied in part of Tether’s attempt to remove claims of “improper” Bitcoin Collateral’s liquid collateral during the collapse of the Crypto Lender.
According to the documents in court Filed In New York on Monday, Celsius said Tether (USDT) conducted a “fire sale” of more than 39,500 bitcoin (Btc) In June 2022, the proceeds were applied against Celsius’ $ 812 million debt without following the agreed procedures.
Celsius claimed that Tether’s actions violated their lending agreement, violated the “good faith and fair deal” under the British Virgin Islands law, and established deceptive and preference transfer that would be avoided under the US bankruptcy code.
Complaint centers on a margin call Tether issued as Bitcoin prices collapsed. Celsius argued that Tether had sold its collateral before a 10-hour waiting period, coiling the BTC at an average price of $ 20,656 (below market levels) and eventually transferred assets to its own accounts in Bitfinex.
Related: Celsius creditors are said to be 30% less compensation than promised during losses
Celsius lost $ 4 billion in sale of tether btc
Files argue that Tether’s extermination is worth Celsius with more than $ 4 billion BTC worth at current prices.
Celsius further claims Tether’s actions involved in US -based communications, personnel and financial accounts, who established ample correlations for the US constituents despite Tether’s integration with the British Virgin Islands and Hong Kong.
The judge, Celsius, has made it possible that the transfers and it is said to be a “domestic” in nature, denying Tether’s argument that claims represent an unacceptable extraterritorial application of the US losses law.
In August 2024, Tether sought to remove the lawsuit. As the court deleted some numbers, it allowed the major violation of Celsius’ contract, deceptive transfer and desire to claim to continue.
Celsius, who once in the largest crypto lender, officially Exit losses on January 312024, after an 18-month adjustment process. The company is now paying creditors.
Related: Tether plans to open the Bitcoin Mining OS source; CEO says ‘no need’ for 3rd party sellers
Tether CEO removes IPO plans
In June, Tether’s CEO Paolo Ardoino said The company has no plans to go public. Ardoino responded to speculation about a potential IPO of Tether, who had removed the idea even though observers suggest that a public offer could appreciate the giant Stablecoin of more than $ 500 billion, larger than corporations such as Costco or Coca-Cola.
While calling a $ 515 billion appreciation of a “good number,” Ardoino suggested that it might Even undervalue tetherConsidering the huge bitcoin and gold reserves.
Meanwhile, Tether continues to expand its trace of Bitcoin, who has owned the Jack Malers ‘owner’ twenty-one capital, now the third largest Bitcoin holder in the world. Tether recently Moved nearly 37,230 BTCIt costs about $ 3.9 billion, to addresses tied to the platform.
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