A New York bankruptcy judge has ruled that Celsius Network can proceed with most of its $4.3 billion lawsuit against Tether, CoinDesk reported on July 2.
The dispute centers on allegations that Tether illegally liquidated 39,542 BTC (worth approximately $4.3 billion today) used as collateral for loans before the mandatory 10-hour waiting period expired.
Celsius, which filed for bankruptcy in 2022, claims that Tether carried out a "fire sale" of its Bitcoin collateral without proper notice.
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Judge Martin Glenn rejected Tether's argument that Celsius' former CEO, Alex Mashinsky, verbally authorized the liquidation, calling such permission "insufficient."
Tether has denied any wrongdoing, calling the lawsuit "baseless" and accusing Celsius of trying to blame others for its own financial collapse.