Tether Rejects $2.4 Billion Celsius Lawsuit, Claims No Liability for Crypto Lender's Collapse
Tether has firmly denied allegations made by Celsius Network in a recently filed lawsuit. Celsius claims Tether played a role in its bankruptcy but the stablecoin giant maintains it acted in good faith and bears no responsibility for the crypto lender's financial downfall.
Because Bitcoin
August 10, 2024
As per a recent press release, Tether has vehemently rejected a lawsuit filed against it by Celsius Network, calling the legal action baseless and an attempt to shift blame for Celsius's financial collapse.
Celsius, through its Blockchain Recovery Investment Consortium, has accused Tether of wrongdoing in a 2022 agreement that involved a $815 million USD₮ loan secured by Bitcoin. Tether insists that the agreement was executed under fair market conditions and that Celsius's subsequent decision to liquidate its Bitcoin collateral was solely its own.
The lawsuit, seeking a staggering $2.4 billion in damages, is seen by Tether as a desperate attempt to recoup losses caused by Celsius's mismanagement. The company maintains a strong financial position and is confident of prevailing in court. Tether has emphasized its robust financial health, with a consolidated equity of nearly $12 billion as of June 30, 2024. Tether has pledged to vigorously defend itself against these unfounded allegations and to protect the interests of its token holders.
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