{"id":34896,"date":"2025-07-02T21:46:45","date_gmt":"2025-07-02T21:46:45","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=34896"},"modified":"2025-07-02T21:46:45","modified_gmt":"2025-07-02T21:46:45","slug":"ny-bankruptcy-judge-gives-celsius-the-green-light-to-pursue-4-3b-lawsuit-against-tether","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=34896","title":{"rendered":"NY Bankruptcy Judge Gives Celsius the Green Light to Pursue $4.3B Lawsuit Against Tether"},"content":{"rendered":"
\n

A New York bankruptcy court has given Celsius the go-ahead to pursue the bulk of its $4 billion lawsuit against stablecoin issuer Tether, according to a recent court filing<\/a>.<\/p>\n<\/p>\n

The bankrupt crypto lender filed suit against Tether last year, alleging that Tether improperly liquidated nearly 40,000 bitcoins \u2014 worth over $4.3 billion at today\u2019s prices \u2014\u00a0that it was holding as loan collateral in June 2022, shortly before Celsius halted withdrawals. In their suit, Celsius\u2019 lawyers argued that Tether didn\u2019t give Celsius enough time to satisfy its collateral demands, which they claimed it had \u201csufficient Bitcoin on its balance sheet\u201d to do so \u201cgiven that Celsius had instituted a \u2018pause\u2019 on customer withdrawals \u2026 resulting in the retention of, and access to, a significant amount of Bitcoin.\u201d<\/p>\n<\/p>\n

\u201cIf Celsius had been given the opportunity to meet the collateral demand \u2014\u00a0which it had a contractual right to do \u2014\u00a0it could have been able to avoid the disposition of its Bitcoin at near the bottom of the cryptocurrency market,\u201d Celsius\u2019 lawyers wrote. \u201cInstead, that disposition was carried out for the benefit of just one creditor: Tether.\u201d<\/p>\n<\/p>\n

At the time the suit was filed, Tether pledged to fight it<\/a>, calling the suit \u201cbaseless\u201d and a \u201cshameless litigation money grab\u201d in a press statement. Tether claimed that Celsius executives directed the liquidation of its BTC collateral held by Tether in \u201cin order to close out its roughly 815 million USDT position\u201d with the company.<\/p>\n<\/p>\n

Read more: Tether to Fight Celsius\u2019 $3.3 Billion \u2018Shakedown\u2019 Litigation<\/a><\/em><\/strong><\/p>\n<\/p>\n

\u201cRather than recognize the clear validity of the agreement entered into years before Celsius\u2019 bankruptcy, this lawsuit seeks to improperly impose the costs of Celsius\u2019 mismanagement and failure on Tether,\u201d the company\u2019s statement said.<\/p>\n<\/p>\n

However, the judge overseeing the case disagreed with Tether, arguing in his Monday order that Celsius\u2019 then-CEO Alex Mashinsky\u2019s \u2014 who was sentenced to 12 years in prison for fraud <\/a>in May \u2014\u00a0\u201dalleged oral permission\u201d given to Tether to liquidate Celsius\u2019 bitcoin collateral was \u201cinsufficient\u201d and that not giving Celsius the 10-hour window to post collateral allotted by the two firms\u2019 contract could still be a breach of contract, verbal permission or not.<\/p>\n<\/p>\n

In his June 30th order, Chief Bankruptcy Judge Martin Glenn of the Southern District of New York (SDNY) granted threw out only one count of the amended complaint, Count 4, which alleged that Tether breached the \u201ccovenant of good faith and fair dealing\u201d under British Virgin Islands law. For that count, Glenn decided to dismiss it without prejudice, giving Celsius\u2019 lawyers the opportunity to amend it with \u201cfacts sufficient to bring themselves within the requirements of BVI law.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A New York bankruptcy court has given Celsius the go-ahead to pursue the bulk of its $4 billion lawsuit against stablecoin issuer Tether, according to a recent court filing. The bankrupt crypto lender filed suit against Tether last year, alleging that Tether improperly liquidated nearly 40,000 bitcoins \u2014 worth over $4.3 billion at today\u2019s prices […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-34896","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/34896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34896"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/34896\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}