A New York bankruptcy court has given Celsius the approval to pursue most of its demand of $ 4 billion against the Stablecoin issuing layer, according to a recent presentation of the court.
The bankruptcy cryptographic lender filed a lawsuit against Tether last year, claiming that Tether incorrectly liquidated almost 40,000 bitcoins, with a value of more than $ 4.3 billion at today’s prices, which was maintained as a guarantee of loans in June 2022, shortly before Celsius stopped withdrawals. In their lawsuit, Celsius’s lawyers argued that Tether did not give Celsius enough time to meet his collateral demands, which said he had “enough Bitcoin in his balance” to do it “since Celsius had instituted a ‘pause’ in the retreats of the clients … It resulted in the retention and access to a significant amount of Bitcoin.”
“If Celsius had had the opportunity to meet the collateral demand, which had the contractual right to do, it could have been able to avoid the disposition of its bitcoin near the bottom of the cryptocurrency market,” Celsius’s lawyers wrote. “On the other hand, that provision was made for the benefit of a single creditor: Tether.”
At the time the lawsuit was filed, Tether promised to fight her, calling for the “without foundation” demand and a “shameless litigation money capture” in a press release. Tether said that Celsius executives directed the liquidation of their BTC guarantee held by Tether in “to close its position of approximately 815 million dollars” with the company.
Read more: Tether to fight Celsius’s litigation ‘$ 3.3 billion’ Shakedown ‘
“Instead of recognizing the clear validity of the agreement held in years before Celsius’s bankruptcy, this lawsuit seeks to impose incorrectly the costs of poor management and failure of Celsius in the teapot,” said the company’s statement.
However, the judge who supervised the case did not agree with Tether, arguing in his order on Monday that then Celsius, then Ceo Alex Mashinsky, who was sentenced to 12 years in prison for fraud in May, “alleged oral permission” given Tether to liquidate the collateral of Bitcoin de Celsius “, the insufficiency of two Celsiats, and that was not a large company. Contract, verbal permission or not.
In its order of June 30, the main bankruptcy judge Martin Glenn of the Southern District of New York (SDNY) Granted, he released only one position of the complaint amended, Count 4, who claimed that Tether violated the “pact of good faith and fair treatment” under the law of the British Virgin Islands. For that count, Glenn decided to dismiss him without prejudice, giving Celsius’s lawyers the opportunity to amend it with “sufficient facts to bring within the requirements of Law BVI.”
