A New York bankruptcy judge has given Celsius Network the go-ahead to sue Tether for $4.3 billion, alleging the stablecoin issuer wrongfully liquidated 39,542 Bitcoin used as loan collateral.
The ruling allows Celsius to argue that Tether violated their agreement by selling the BTC before a 10-hour waiting period ended—despite Tether’s claim that former Celsius CEO Alex Mashinsky verbally consented. Judge Martin Glenn dismissed that defense, stating oral agreements don’t override written terms.
Tether, which called the lawsuit a “desperate attempt to recoup losses,” now faces a high-profile legal battle that could impact crypto lending practices. The outcome may influence how collateralized loans are enforced in future bankruptcies.
