Quick Take:
- Celsius is suing Tether to recover a cool $2 billion in Bitcoin, alleging “fraudulent” transfers.
- Drama in crypto-lender land as Celsius files bankruptcy and claims Tether cashed out their Bitcoin collateral prematurely.
Yello Paradisers! Are your investments at risk as the crypto giants clash? Celsius Network has launched a staggering $2 billion lawsuit against Tether, alleging “fraudulent” Bitcoin transfers just before its bankruptcy.
Celsius vs. Tether: The $2 Billion Bitcoin Brouhaha
In a plot twist worthy of a crypto-thriller, Celsius Network has thrown down the legal gauntlet against Tether, the big boss of USDT, hoping to claw back a whopping $2 billion in Bitcoin. It seems Celsius’s wallet felt a bit lighter after some alleged midnight maneuvers by Tether that would make Cinderella’s carriage rush look leisurely.
The Deal That Turned Sour
Rewind to the good old days of 2020, Celsius and Tether shook hands (virtually, of course) on a token agreement. Fast forward to 2022, and the plot thickens, Tether was supposed to notify Celsius if their collateral needed beefing up. According to the script, Celsius had a ten-hour window to meet these demands.
But here’s where the drama peaks: As Bitcoin began its nosedive in April 2022, Tether, like a nervous squirrel before winter, started calling in the collateral. Celsius, playing the part of the diligent borrower, topped up the Bitcoin pot.
The Night of Long Knives
Cut to a fateful night in June 2022, Tether, perhaps inspired by a sense of impending doom or just after watching too many Wall Street flicks, allegedly demands more shiny Bitcoin collateral. Celsius claims it met the first demand with a sleepy transfer of 3,041.73 Bitcoin. But then, Tether, unsatisfied, supposedly cries out for more in the wee hours.
Contrary to the gentleperson’s agreement, Tether allegedly starts a Bitcoin fire sale without waiting for the clock to run down, liquidating Celsius’s digital gold faster than you can say “blockchain.” The total damage? A hefty 39,542.42 Bitcoin gone, just like that.
What’s Next in This Crypto Saga?
Now, Celsius, from the ashes of bankruptcy, is fighting to get those Bitcoins back, claiming the whole episode was a grand display of contractual no-nos and should be reversed faster than you can say “What’s the BTC rate today?”.
As the gavel waits to fall, the crypto world watches with bated breath. Will Celsius retrieve its digital treasure, or is this another tale of high finance and heartbreak? Stay tuned, for the crypto courtroom drama is just getting started!
