Tether Responds to $2.4 Billion Demand in Celsius’s Lawsuit

As a seasoned researcher with years of experience navigating the complex world of finance and cryptocurrency, I find myself closely following this latest development between Tether and Celsius. Having witnessed numerous ups and downs within the crypto space, I can’t help but feel a sense of deja vu in light of this lawsuit.


In response to the $2.4 billion legal action brought forth by the collapsed crypto-lending service, Celsius, Tether – the stablecoin issuer – has taken action.

As a crypto investor, I find myself caught up in a lawsuit where Celsius is accusing the dominant stablecoin issuer of illicitly transferring Bitcoins, which I find troubling and concerning for the stability of my investments.

The disagreement originates from a loan agreement signed in 2020 between the two entities, whereby Tether was granted loans by the stablecoin provider at relatively low interest rates.

Following the market crash, Celsius was unable to supply extra coins, resulting in the liquidation of its Bitcoin holdings as collateral.

The plaintiff contends that Tether did not provide a chance for them to meet Tether’s collateral requirement, resulting in their coins being sold near the lowest point of the market.

Contrarily to the assertion, Tether firmly denies any improper liquidation of its collateral. According to Tether CEO Paolo Ardoino, the company was within its rights to liquidate Celsius’s position following its failure to provide additional collateral.

The company dismissed the lawsuit as unfounded, stating that they intend to pass on the expenses stemming from their alleged mismanagement to the entity responsible for issuing the digital currency (stablecoin).

Arnold emphasizes his intention to carry on the legal fight relentlessly, as this significant court case is considered pivotal for the stabilitycoin sector by the foremost issuer. He further stated that intimidation doesn’t faze them in the slightest.

“We’re grateful for the incredible backing we’ve received within our community. With Tether, we aim to serve as a role model as our community rebuilds after being affected by unscrupulous individuals in the crypto world,” Ardoino stated on a subsequent social media post.

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2024-08-11 11:17