Tether Slams Celsius Lawsuit as a ‘Shakedown,’ Vows to Fight Claims in Court

Tether Limited has strongly rejected a lawsuit filed by Celsius Network, describing it as a “shakedown” and without basis. The lawsuit, filed in the U.S. Bankruptcy Court, claims $2.4 billion in Bitcoin was improperly liquidated by Tether before its bankruptcy over two years ago. Tether insists that it acted in accordance with an agreement that required Celsius to post additional Bitcoin as collateral. In response, Tether accuses Celsius of mismanagement and seeks to impose the costs of its actions on Tether. Tether questions the legal foundation of the lawsuit and emphasizes its financial strength, with $12 billion in consolidated equity as of June 30, 2024. Celsius filed for Chapter 11 bankruptcy in July 2022 and claims that Tether did not provide the agreed-on timeframe to make a collateral deposit. Celsius argues that Tether’s actions destroyed Celsius’s interest in the collateral. Former CEO Alex Mashinsky has faced criminal charges and civil lawsuits, and creditors approved a $2 billion restructuring plan to guide Celsius out of bankruptcy.