Celsius cryptocurrency exchange has filed a lawsuit against Tether, accusing the stablecoin company of mishandling its assets. Celsius is seeking $3.5 billion in Bitcoin, along with damages and legal costs.
According to the complaint, the problems began during Celsius’ bankruptcy. Celsius claimed to have borrowed Tether’s digital currency, USDT, in exchange for providing 39,542.42 BTC as collateral.
When the price of Bitcoin fell, Celsius was supposed to provide additional collateral to avoid losses on Bitcoin. Celsius said Tether did not allow this and instead liquidated the bitcoins at a price roughly equal to the debt.
Celsius is currently seeking the return of 57,428.64 BTC, including other Bitcoin transfers made during this time. The total amount sought in the lawsuit is approximately $3.48 billion, based on the price of Bitcoin as of August 10th.
However, Tether denied these claims and called the lawsuit “baseless.” According to Tether, it was Mr. Celsius who chose not to provide additional collateral and directed Tether to sell the Bitcoin.
Tether said it would “vigorously defend” these claims, cited its $12 billion consolidated capital as a safeguard and reassured USDT holders that the lawsuit would not affect it.
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