The post Judge Approves Celsius $4B Lawsuit Against Tether appeared on BitcoinEthereumNews.com.

Celsius lawsuit for $4B Bitcoin loss advances.
Tether was accused of bad-faith Bitcoin liquidation.
Court rejects Tether’s non-U.S. jurisdiction claim.
Celsius Network Limited has been granted permission to pursue a $4 billion lawsuit against Tether Limited by a bankruptcy court in the United States. The lawsuit, which was filed in the Southern District of New York, alleges that Tether wrongfully liquidated Bitcoin collateral in the course of Celsius in 2022. In a ruling, the court denied the motion to dismiss filed by Tether and believed the claims made by Celsius to be credible to continue. The Blockchain Recovery Investment Consortium was the organization that first brought the legal case forward in August of 2024 with Celsius. The complaint alleges that Tether sold Bitcoin which was provided as collateral in a 2022 transaction. According to Celsius, based on the current price of Bitcoin, the corporation is over $4 billion in debt due to the liquidation. On July 2, 2025, the court ruled in favor of proceeding with the case, overriding jurisdictional challenges by Tether. Allegations of Breach and Fraud According to Celsius, Tether breached the contract by liquidating Bitcoin without any reasonable cause. The lawsuit notes that Tether’s actions involved U.S.-based communications and financial accounts, creating a sufficient connection to establish jurisdiction in the U.S. The court found Celsius’s claims of contract breach and potential fraud to be plausible. Specifically, Celsius claims that Tether liquidated assets in bad faith, causing significant financial damage. The decision is a major milestone for the company on its road to recouping significant losses experienced in its fall in 2022. In an August 2024 statement, in response, Tether described the lawsuit as a baseless shakedown. Regardless of the defense provided by Tether, the court held that the evidence provided by Celsius was…

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Filed under: News - @ July 5, 2025 11:27 am