By
Tether to Fight Celsius’ $3.3 Billion Bitcoin Lawsuit
https://ift.tt/1GNBAJV
The conflict arises from Celsius’ recent request to the U.S. Bankruptcy Court of the Southern District of New York.
They are demanding Tether return 57,428.64 BTC or pay the equivalent in cash. Amounting to roughly $3.3 billion at current prices. Tether, however, strongly rejects these claims, labeling the lawsuit as a “shakedown.”
Tether Rejects Celsius’ $3.3 Billion Bitcoin Demand in Legal Dispute
The case centers around a loan agreement between Tether and Celsius, which allowed Celsius to borrow stablecoins to manage essential parts of its business. According to Celsius, during the volatile market conditions of mid-2022, Tether allegedly insulated itself from Celsius’ impending bankruptcy by making “preferential and fraudulent transfers” of Bitcoin in the ninety days leading up to Celsius’ bankruptcy filing.
Celsius contends that these actions were taken without proper justification and are now seeking the return of these Bitcoins or their cash equivalent. Tether, however, has pushed back forcefully against these allegations. In a statement published on its website, the company argued that the Bitcoin in question had been liquidated at Celsius’ direction.
Source: X
And with its consent at the prices prevailing in June 2022. Tether claimed that the value of these Bitcoins at the time of liquidation was approximately $2.4 billion, though it did not specify how this figure was calculated.
More About Tether & Celsius
Paolo Ardoino, Tether’s CEO, took to social media platform X (formerly known as Twitter) to voice his disapproval of the lawsuit, stating that it was an attempt to “claim back the Bitcoin that were sold to cover Celsius’ position.” He further emphasized that the lawsuit is fundamentally flawed and vowed to fight it to the end.
Source: X
Ardoino stressed that Tether’s actions were fully within the bounds of their contract with Celsius. Also, he warned that such “shameless money grabs” would not succeed in setting a negative precedent for the industry.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post Tether to Fight Celsius’ $3.3 Billion Bitcoin Lawsuit appeared first on Altcoin Buzz.
news
via Altcoin Buzz https://ift.tt/qbIiLoa
August 12, 2024 at 06:17AM
August 12, 2024 at 06:20AM
via Altcoin Buzz https://ift.tt/1GNBAJV