- Tether dismisses Celsius Network’s $2.4 billion lawsuit as a “shakedown,” defending its liquidation actions as per the contract.
- Celsius Network accuses Tether of improper Bitcoin liquidation, seeking $2.4 billion, but Tether vows to defend itself in court.
- Tether assures USDT holders of their stability, with nearly $12 billion in equity, amidst legal battles with Celsius Network.
The issuer of stablecoin USDT, Tether, has blasted Celsius Network’s allegations after the crypto lender sought around 2.4 billion dollars in bitcoin for restitution from the company. Basically, Celsius blamed Tether for a wrong liquidation during a financial agreement.
In response to what it called a ‘shake down’ lawsuit filed by Celsius against it, Tether accused the crypto lender of trying to lay the blame for its own financial mismanagement at its doorstep according to its statement released yesterday.
The disagreement originated from an accord made in 2022 when Celsius borrowed USDT from Tether using BTC as collateral.
During this time when the price of BTC dropped, Celsius did not provide extra collateral as required under their deal hence leading to its liquidation by Tether who said they acted within their contractual rights by doing so after all efforts made to get more funds fell through.
Tether argues that it followed all provisions contained in the contract entered into and will thus vigorously defend themselves against these groundless claims.
Tether confident despite legal fight
While speaking about his firm’s financial position amid this legal battle with celsius over alleged improper liquidations during an agreement between both companies last year where one borrowed another using digital assets such as bitcoin among others as collaterals; Paolo Ardoino who is CEO at USDT noted “We have close around twelve billion dollars equity still.” He however added that “Please be assured holders rest easy knowing this will never affect any aspects relating stability whatsoever”.
This year saw celsius emerge out bankruptcy protection following successful completion plan terms including giving out over three billion worth cryptos.
Alongside fiat money creditors shared also were given stakes Ionic Digital which started mining operations February having mined more than thirteen hundred bitcoins since then becoming once again major player industry
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
