Celsius Network has just made the green light Tether in court on one of the greatest disputes in the recent history of cryptography – a trial of $ 4 billion focused on the liquidation of Bitcoin during the collapse of Celsius in 2022.
A bankruptcy judge in the United States has enabled the case to move forward, rejecting the main parts of the attempt to close it. The decision could have lasting consequences on the way in which global cryptography companies are held responsible for American courts, especially when billions are at stake.
Here are the deets.
Bitcoin’s “sale of fire” under control under control
The case dates back to June 2022, when Celsius was already under pressure while the cryptographic markets crashed. Tether, who had lent money to Celsius, would have sold more than 39,500 BTC at an average price of $ 20,656, well below the market value at the time. Celsius says it was done without notice AND In violation of a 10 -hour waiting period which was part of their agreement.
Celsius affirms that this decision has not only broken their contract, but also equipped fraudulent and preferential transfers under the American bankruptcy. At today’s prices, Celsius says that early liquidation cost them more than $ 4 billion in Bitcoin.
The BTC, according to court documents, was then transferred to Bitfinex, the company Sister de Tether.
Tether’s argument of the jurisdiction fails
Tether tried to reject the case, arguing that an American court has no authority since the company is based in the British Virgin Islands and in Hong Kong. But the judge did not agree.
The court concluded that Tether used American staff, bank accounts and communications in his transactions with Celsius enough to consider “domestic” activity. This decision now opens the door to pursuit of Celsius to continue in the United States, even if Tether operates in Offshore.
Some lower complaints have been rejected, but the judge authorizes Celsius to pursue key accusations – including breach of contract, fraudulent transfer and preferential transfer.
Major implications for cryptography and stable loans
It is not only an audience fight between two cryptographic companies. The decision could influence the way in which similar cases are dealt with in the future, in particular with regard to stable issuers, asset custody and cross -border loan practices.
If Celsius proves his statements, this could raise serious questions about how the main players as the attachment manage customer assets during the market stress period.
The attachment continues to extend despite the legal pressure
While the legal battle continues, Tether does not slow down. The company recently bought majority participation in Twenty One Capital, a company linked to the CEO of Strike, Jack Malers. With this movement, Tether is now connected to the third largest business bitcoin holder in the world.
Tether also transferred nearly 37,230 BTC, worth around 3.9 billion dollars, for addresses linked to the platform further strengthening its position on the Bitcoin market.
In the midst of all this, CEO Paolo Ardoino rejected discussions on an IPO. Even if speculation swirls on a possible evaluation of $ 500 billion, Ardoiino said that the company had “no project” to become a public.
What is the next step?
The case is now heading for the next phase, Celsius to keep attached to what he considers a massive violation of confidence.
We will keep you informed of the way it takes place – here on Coinpedia.
