Celsius $4B Bitcoin Lawsuit Against Tether Moves Forward - Unchained

U.S. bankruptcy judge Martin Glenn has ruled that Celsius Network’s $4 billion lawsuit against stablecoin giant Tether can proceed, rejecting major portions of Tether’s motion to dismiss the case.

The lawsuit centers on allegations that Tether improperly liquidated over 39,500 BTC held as collateral for Celsius loans during the crypto market crash in June 2022.

Celsius alleged that Tether breached their lending agreement by selling the BTC collateral before a contractually required 10-hour waiting period had elapsed, and at an average price of $20,656, below prevailing market rates

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Meanwhile, Tether’s case for dismissal was built on the fact that both companies are based offshore and the transactions were international. But the judge found sufficient ties to the U.S., including U.S.-based accounts and systems, to allow the case to proceed

Last August, Tether CEO Paolo Ardoino labelled the lawsuit “baseless” and claimed that Tether was acting on Celsius’ instructions to liquidate the BTC and return it to Celsius

In the first half of 2024, Tether’s profits surged to around $5.2 billion, largely from interest income on its reserve assets, mainly U.S. government debt, which had grown to nearly $98 billion by mid-2024 and approached $120 billion by early 2025.