TechFlow news, August 10 — Tether issued a statement on its official website announcing it will defend against the lawsuit filed by Celsius Network Limited. Celsius has sued Tether and certain of its affiliates through Blockchain Recovery Investment Consortium, LLC in the U.S. Bankruptcy Court for the Southern District of New York. Tether stated that this lawsuit is entirely baseless and represents an improper attempt to shift the costs of Celsius’s mismanagement and failure onto Tether.
The lawsuit stems from an agreement in 2022 under which Tether provided Celsius with the amount of USD₮ requested, while Celsius offered Bitcoin (BTC) as collateral to Tether. When BTC prices declined in June 2022, the agreement required Celsius to post additional collateral to avoid liquidation of its BTC holdings. However, Celsius chose not to provide more collateral and instead instructed Tether to liquidate the BTC to settle a position of approximately $815 million in USD₮.
Tether emphasized that rather than acknowledging the clear validity of agreements made years before Celsius's bankruptcy, this lawsuit attempts to improperly impose the consequences of Celsius’s own mismanagement and collapse onto Tether. Two years after entering into a separate agreement with Tether, the lawsuit now demands that Tether return BTC valued at approximately $2.4 billion—despite the fact that these BTC were liquidated at June 2022 market prices, at Celsius’s own direction and with its full consent.
Tether reiterated its firm opposition to this unfounded litigation and expects to prevail in court. Additionally, Tether highlighted its sound financial management, noting that as of June 30, 2024, its consolidated equity stood close to $12 billion. It stated that even if the claims were upheld, there would be no impact on holders of Tether tokens. Tether remains committed to maintaining its profitability, with monthly profits consistently growing, ensuring continued stable development of its business.
