Celsius Network has filed a lawsuit against Tether, accusing the stablecoin issuer of breaching contractual obligations and causing significant financial harm through the liquidation of Bitcoin assets. This article delves into the details of the lawsuit and its potential implications for both companies.
Points
- Celsius Network has filed a lawsuit against Tether, alleging breach of contract and improper liquidation of Bitcoin assets.
- The lawsuit seeks to recover the lost Bitcoin or an equivalent amount in compensation.
- Tether has responded, stating its intent to defend against the claims.
- The legal battle highlights the ongoing challenges in the crypto industry regarding contract disputes and asset liquidation.
Celsius Network, a once-prominent crypto lending platform, has initiated legal action against Tether, the issuer of the USDT stablecoin, in a federal bankruptcy court. The lawsuit centers around allegations that Tether breached its contractual obligations by liquidating a substantial amount of Bitcoin that Celsius had posted as collateral. This liquidation, according to Celsius, exacerbated its financial troubles and contributed to its eventual bankruptcy filing.
The dispute traces back to a loan agreement between Celsius and Tether in 2020, under which Tether lent Celsius approximately $1 billion in USDT at an interest rate of 5% to 6%, with Bitcoin as collateral. By 2021, Celsius had borrowed nearly $2 billion in USDT under this agreement. However, the relationship between the two companies soured when Tether allegedly liquidated a significant portion of the collateralized Bitcoin.
Celsius claims that Tether acted in bad faith by hastily selling off the Bitcoin at an average price of $20,656.88 per coin, which was below the market closing price of $22,487.39 on that date. This liquidation, Celsius argues, violated the terms of their agreement and caused the company to suffer substantial financial losses, ultimately leading to its bankruptcy.
In the lawsuit, Celsius is seeking to recover the value of the liquidated Bitcoin or an equivalent amount as compensation. The company contends that the sale was conducted at a low market value, depriving Celsius of its remaining BTC assets during a critical period. Furthermore, Celsius plans to pursue additional compensation for what it views as a breach of contract by Tether.
Tether, for its part, has denied any wrongdoing and expressed its commitment to defending itself against the claims. In a statement posted on X （formerly Twitter）, Tether’s CEO, Paolo Ardoino, reaffirmed the company’s stance and criticized the lawsuit as an attempt to shift blame for Celsius’s financial mismanagement.
This legal battle between Celsius and Tether underscores the complex and often contentious nature of contractual relationships in the crypto industry. As both companies prepare to present their cases in court, the outcome of this lawsuit could have far-reaching implications for the crypto lending and stablecoin sectors. It also highlights the risks associated with asset liquidation and the importance of clear and enforceable contractual agreements in the rapidly evolving crypto landscape.
解説
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Contractual Disputes in Crypto: The lawsuit between Celsius and Tether highlights the challenges of managing large-scale financial agreements in the crypto industry. The complexity of these contracts, combined with the volatile nature of crypto assets, can lead to significant disputes.
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Impact on Stablecoin Market: The outcome of this lawsuit could affect the stablecoin market, particularly if Tether is found liable for breaching its contract with Celsius. This could lead to increased scrutiny of stablecoin issuers and their practices.
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Legal Precedent: This case could set a legal precedent for how contract disputes involving digital assets are resolved. The court’s decision may influence future agreements between crypto companies and how they handle asset liquidation and collateral management.