US judge rules Celsius's $4 billion Bitcoin liquidation lawsuit against Tether to continue

According to Cointelegraph, a US judge has ruled that Celsius Network's multi billion dollar lawsuit against Tether can continue. According to court documents submitted in New York on Monday, Celsius accuses Tether of liquidating over 39500 bitcoins in June 2022 and using the proceeds to repay Celsius's $812 million debt, without following the agreed upon procedures. Celsius claims that Tether's actions violated the lending agreement between the two parties, violated the "good faith and fair dealing" requirements under the laws of the British Virgin Islands, and constituted avoidable fraudulent and preferential transfer practices under the US Bankruptcy Code. The core of the lawsuit is Tether's margin call notice issued during the Bitcoin price crash. Celsius argues that Tether sold its collateral before the 10 hour waiting period, cleared BTC at an average price of $20656 (below market level), and then transferred the assets to its own Bitfinex account. The document states that Tether's liquidation resulted in Celsius losing over $4 billion worth of BTC (at current prices). Celsius further claims that Tether's actions involve communication, personnel, and financial accounts located in the United States, and although Tether is registered in the British Virgin Islands and Hong Kong, these actions are sufficient to make it subject to US jurisdiction.   A US judge has dismissed Tether's partial dismissal motion, allowing Celsius Network's multi billion dollar lawsuit against Tether to continue. Celsius accuses Tether of improperly liquidating approximately 39500 of its Bitcoin collateral in June 2022, violating the procedures outlined in the lending agreement between the two parties. This liquidation action resulted in Celsius losing over $4 billion.. Although Tether argued that the US courts lacked jurisdiction, the judge believed that Celsius's claims of breach, fraudulent transfer, and priority could continue to be heard.