Tether will defend against the "ransom" lawsuit initiated by Celsius

ChainCatcher news, Celsius Network Limited has filed a lawsuit against Tether Limited and some of its affiliates in the U.S. Bankruptcy Court for the Southern District of New York through Blockchain Recovery Investment Consortium, LLC, seeking the return of approximately $2.4 billion worth of Bitcoin from Tether.

Tether states that the allegations in the lawsuit stem from an agreement made in 2022, under which Tether provided USDT to Celsius at its request. Celsius provided Bitcoin (BTC) as collateral to Tether. When the price of Bitcoin began to decline in June 2022, the agreement required Celsius to provide additional collateral to avoid liquidation of its Bitcoin. When Celsius chose not to provide additional Bitcoin, it instructed Tether to liquidate its held Bitcoin collateral to close its approximately $815 million USDT position held by Tether.

Tether stated that it will respond to this "manufactured, baseless" extortion lawsuit in court, and will actively defend itself against the unfounded allegations made against it, expecting to prevail in this lawsuit.