Yesterday, Celsius Network filed a case against Tether Limited and its affiliates through Blockchain Recovery Investment Consortium, LLC. Tether positively responded to the legal authorities and shared on its official X account that Tether will defend itself in the ‘Shake Down’ lawsuit filed by the Celsius Network.
Tether, the world’s leading stablecoin issuer firm, has decided to defend itself in a ‘Shake Down’ lawsuit and to legally deal with the Celsius Network. The case is filed in the US Bankruptcy Court in the Southern District of New York.
Contextual Background: The Agreement Made Between Tether and Celsius in 2022
In an official blog, the Tether team calls this lawsuit baseless and shares a referenced quote that ‘no good deed goes unpunished’. Celsius’ Shake Down lawsuit arises out of the agreement made between Tether and Celsius back in 2022.
According to that agreement, Tether offered the availability of USD₮ to Celsius for which Celsius deposited Bitcoin to Tether Limited as collateral. But Bitcoin ($BTC) began to drop in June 2022, and as per agreement Celsius had to put more $BTC as collateral. But Celsius refused to do so and demanded Tether to sell off the $BTC it was holding which was about 815M USD₮.
Instead of acknowledging the ground realities of the agreement made with Tether in 2022 before Celsius went bankrupt, Celsius is now blaming Tether instead of its mismanagement and failure. Now, after two years of agreement, Celsius is demanding Tether to return $BTC worth $2.4 million. However, it’s a fact that Celsius directed and consented to the BTC’s liquidation at June 2022 prices.
Tether’s Response to ‘Shake Down’ Lawsuit Filed by Celsius Network
Tether has shared a bold response to this lawsuit by calling it a baseless case which will only benefit the lawyers and the bankers. Based on factual shreds of evidence, Tether will surely defend itself in the Shake Down lawsuit. Moreover, Tether made it clear that it would not fall prey to such baseless lawsuits, would stand in court and surely win the case.
