{"id":35050,"date":"2025-07-03T13:46:47","date_gmt":"2025-07-03T13:46:47","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=35050"},"modified":"2025-07-03T13:46:47","modified_gmt":"2025-07-03T13:46:47","slug":"fight-for-40000-btc-continues-judge-allows-celsiuss-lawsuit-against-tether-to-proceed","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=35050","title":{"rendered":"Fight for 40,000 BTC Continues: Judge Allows Celsius\u2019s Lawsuit Against Tether to Proceed"},"content":{"rendered":"
\n

A U.S. bankruptcy judge has ruled that Celsius Network can proceed with its $4.3 billion lawsuit against Tether.<\/p>\n

The case focuses on claims that the USDT issuer improperly sold nearly 40,000 Bitcoin (BTC) in June 2022.<\/p>\n

The Judge\u2019s Ruling<\/h2>\n

In court documents filed<\/a> in New York on Monday, Judge Martin Glenn ruled that some aspects of the multibillion-dollar lawsuit had merit.<\/p>\n

Celsius had accused the stablecoin company of carrying out a \u201cfire sale\u201d of more than 39,500 BTC and applying the proceeds to a debt of $812 million. The now-defunct crypto lender claimed this was done without following agreed-upon procedures, resulting in losses exceeding $4 billion based on current prices.<\/p>\n

Judge Glenn argued that the alleged verbal permission from former Celsius CEO Alex Mashinsky to liquidate the collateral was \u201cinsufficient.\u201d He added that failing to observe a 10-hour grace period for posting collateral could still count as a breach, \u201coral permission or not.\u201d<\/p>\n

The judge also said that the digital asset firm\u2019s awareness of Celsius\u2019s insolvency at the time did not give it a legal basis to act independently. However, he dismissed some parts of the lawsuit. For instance, claims against certain Tether entities were dropped due to a lack of personal jurisdiction. Allegations that rely on applying U.S. bankruptcy law outside the country were also dismissed.<\/p>\n

The judge further decided that Celsius did not prove the defendant had breached its duties under British Virgin Islands (BVI) law regarding good faith and fair dealing.<\/p>\n

Details of The Case<\/h2>\n

The dispute is centred on a margin call the USDT provider issued during a decline in BTC\u2019s prices three years ago. Celsius says the agreement included a 10-hour window to post additional collateral, but Tether sold the Bitcoin before that period expired.<\/p>\n

The crypto lender says the respondent\u2019s actions breached their agreement, violated \u201cgood faith and fair dealing\u201d under BVI law, and involved fraudulent and preferential transfers that violate the U.S. Bankruptcy Code.<\/p>\n

According to the filing, the assets were liquidated at an average price of $20,656 per coin, which was below market value. Celsius further alleged that the proceeds were later transferred to the stablecoin operator\u2019s Bitfinex accounts. The transactions also involved U.S.-based staff, accounts, and communications, which it believes gives the case enough ties to be handled in a U.S. court.<\/p>\n

In August 2024, Tether moved to dismiss the case, arguing the court lacked jurisdictional authority and that the crypto lender\u2019s claims had no legal ground. The company called the lawsuit \u201cbaseless\u201d and a \u201cshameless litigation money grab.\u201d<\/p>\n

CEO Paolo Ardoino said in a statement<\/a> that Celsius executives had told his organization to sell the BTC \u201cin order to close out its roughly 815 million USDT position.\u201d He added that the lawsuit was an attempt by the bankrupt firm to shift blame for its mismanagement.<\/p>\n

Celsius completed its bankruptcy process on January 31, 2024, and is currently repaying<\/a> its creditors. More recently, its former top executive, Mashinsky, was sentenced<\/a> to 12 years in prison for fraud.<\/p>\n

The post Fight for 40,000 BTC Continues: Judge Allows Celsius\u2019s Lawsuit Against Tether to Proceed<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A U.S. bankruptcy judge has ruled that Celsius Network can proceed with its $4.3 billion lawsuit against Tether. The case focuses on claims that the USDT issuer improperly sold nearly 40,000 Bitcoin (BTC) in June 2022. The Judge\u2019s Ruling In court documents filed in New York on Monday, Judge Martin Glenn ruled that some aspects […]<\/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-35050","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\/35050","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=35050"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/35050\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}