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4 Billion Dollar Bitcoin (BTC) Case Court Block Against Tether! Judge Rejected the Request!
The bankrupt cryptocurrency lending institution Celsius filed a lawsuit against the USDT issuer Tether in 2024, demanding the return of 2.4 billion Bitcoin.
The dispute between Celsius and Tether is based on a 2022 agreement in which Tether provided USDT to Celsius, which sent Bitcoin (BTC) as collateral.
Tether argues that Celsius is attempting to blame Tether for its own financial mismanagement by requesting the return of BTC valued at approximately 2.4 billion USD as of the date of the lawsuit, despite the liquidation being carried out at its own instruction and consent.
While the case is ongoing, the US bankruptcy court allowed Celsius to continue its lawsuit against Tether regarding the current value of 4 billion (BTC, which is ) dollars, in the BTC liquidation case.
At this point, the US bankruptcy judge rejected Tether's motion to dismiss the case and significant portions of the related request. The judge also denied Tether's objection to the dismissal of the case.
Celsius claims in the lawsuit that Tether unlawfully liquidated more than 39,500 BTC during the collapse of its crypto lending business in 2022, violating contract terms and U.S. bankruptcy law. Celsius alleges that Tether panic sold before the necessary legal period expired, selling Bitcoin below its value and without Celsius's approval.