Celsius Wins Court Approval to Pursue Tether Over $4B in Bitcoin Liquidation Claims

In Brief:

Celsius can proceed with lawsuit alleging Tether violated bankruptcy law

Case centers on 57,000 BTC allegedly liquidated before Celsius collapse

A U.S. Bankruptcy Court has allowed Celsius Network to continue its legal battle against Tether over the alleged improper liquidation of more than 57,000 Bitcoin, now worth over $4 billion. The ruling, issued by Judge Martin Glenn on June 30, gives Celsius the green light to pursue multiple claims tied to its 2022 collapse.

According to court filings, Celsius argues that Tether received priority transfers and violated U.S. bankruptcy law by liquidating assets just weeks before Celsius filed for bankruptcy. The claims suggest that these actions breached agreed-upon terms and prematurely seized Bitcoin assets that should have remained with Celsius.

The dispute centers around Celsius’s allegation that if the BTC had not been liquidated, the company could have retained substantial value as prices rebounded. Tether, one of the largest stablecoin issuers, is accused of executing these liquidations outside the scope of the law, raising broader questions about creditor treatment and asset management during insolvency.

The continuation of the lawsuit underscores ongoing legal scrutiny into how crypto firms handled client and partner assets during the 2022 downturn. It also places further pressure on Tether’s operational transparency amid growing regulatory attention.

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