In part, the judge denied Tether’s request to dismiss Tether’s claims. “improperly” The collapse of the cryptocurrency lender Celsius led to the liquidation of Bitcoin collateral.
Court documents filed Celsius (as claimed by Tether) in New York Monday.USDT( ) Executed a “fire sale” Over 39,500 Bitcoins (BTCIn June 2022 the proceeds were applied against Celsius’ $812 million in debt, without following procedures agreed upon.
Celsius alleges that Tether violated the terms of their loan agreement “good faith and fair dealing” The transfer was fraudulent under British Virgin Islands laws and avoided by the US Bankruptcy Code.
The complaint focuses on the margin call Tether made as Bitcoin’s price plummeted. Celsius asserts that Tether had sold the collateral prior to a waiting period of 10 hours, selling the BTC for an average price below the market at $20,656 and then transferring it into its Bitfinex account.
Related: Celsius creditors allege 30% less compensation than promised during bankruptcy
Tether BTC loss of $4 billion
According to the filing, Tether’s bankruptcy cost Celsius more than $4 billion in BTC at today’s prices.
Further, Celsius claims Tether’s actions involve US-based personnel and financial records, creating enough ties to allow US jurisdiction even though Tether is incorporated in Hong Kong, the British Virgin Islands, and other places.
The judge accepted that Celsius had made a convincing case for the transfers, and any alleged misconduct. “domestic” Tether’s arguments that the claims were an illegal extraterritorial extension of US bankruptcy law have been rejected.
Tether will be available in August 2024. sought to dismiss the lawsuit entirelyThe court dismissed some counts, but allowed Celsius to proceed with its main claims of breach of contract, fraudulent transfer and preference. The court allowed Celsius to continue with its main claims of breach of contract and fraudulent transfer, despite dismissing some counts.
Officially, the largest crypto lender, previously known as Celsius, has been renamed to official exited bankruptcy on Jan. 31The company is now repaying creditors after a 18-month restructuring. Now, the company pays its creditors.
Related: Tether plans to open-source Bitcoin mining OS; CEO says ‘no need’ for 3rd party vendors
Tether CEO rejects IPO Plans
Tether’s CEO Paolo Ardoino stated in June that the company has no plans to go public. Ardoino has responded to rumors about a Tether IPO. He dismissed the idea, even though observers said that a Tether IPO could put the stablecoin at a value of over $500 Billion, bigger than Coca-Cola or Costco.
When referring to a valuation of $515 billion, it is important to note that the value has been calculated using current market prices. “beautiful number,” Ardoino suggested that it might even undervalue TetherIts large Bitcoin and Gold reserves are a major concern.
Tether is also expanding its Bitcoin footprint by becoming the majority shareholder of Jack Mallers Twenty One Capital. Twenty One Capital has become the third largest corporate Bitcoin owner in the world. Recently, Tether acquired Twenty One Capital. This is now the world’s third largest corporate Bitcoin holder. transferred nearly 37,230 BTCPlatform addresses will receive a total of $3.9 billion.
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Source: cointelegraph.com
