The now-closed crypto exchange Celsius has filed a lawsuit against Tether, accusing them of mishandling assets and asking for about $3.5 billion in Bitcoin returns, damages, and legal fees.
To clarify: Tether mentioned that Celsius is asking for the return of about $2.4 billion worth of Bitcoin. However, court documents reveal that Celsius is requesting 57,428.64 BTC or its current dollar value, along with damages and legal fees.
Celsius is trying to recover $2 billion
Celsius said that Tether sent the first demand late at night on June 12, 2022 (Eastern time), and Celsius responded the next day by transferring 3,041.73 Bitcoin to Tether. A few hours later, Tether made a second demand for more collateral and asked for immediate payment.
Tether claims the lawsuit is baseless, calling it a “shake down” and promising to strongly defend itself against the “unwarranted allegations,” according to a recent blog post.
While Tether is committed to fighting the lawsuit, it also reassured USDT holders that they have nothing to worry about. The company pointed to its $12 billion in consolidated equity and stated, “even in the unlikely event this baseless lawsuit goes anywhere, Tether token holders won’t be affected.”
The Damages that both sides have taken
As mentioned earlier, the exact amount Celsius is after seems unclear. The number being talked about in the crypto community, and mentioned in Tether’s blog post, is 39,542.42 BTC, which was worth about $2.4 billion on August 10.
However, on page 28 of the legal filing, Celsius also wants the court to void two other transfers made during the same time.
In the lawsuit’s “prayer for relief,” Celsius asks the court to make Tether give back 15,658.21 BTC, 2,228.01 BTC, and 39,542.42 BTC, or their current dollar value.
Altogether, those transfers add up to 57,428.64 Bitcoin. As of August 10, with Bitcoin priced at $60,627 each, Celsius seems to be seeking around $3.48 billion in Bitcoin.
Additionally, Celsius is asking for at least $100 million in damages, plus more damages to be determined at trial and legal fees.
Editor: Lydicius
