
Judge Rejects Tether’s Motion to Dismiss in $4B BTC Case Against Celsius
Tether, the issuer of USDT, has faced a setback in its multibillion-dollar legal battle with Celsius after a bankruptcy judge in the US ruled that the lawsuit can move forward. The judge rejected Tether’s motion to dismiss allegations that it “unjustly” liquidated Celsius’s BTC collateral amid the crypto lender’s failure in 2022.
According to court records submitted in New York on June 30, Celsius asserts that Tether conducted a “fire sale” of more than 39,500 BTC
in June 2022, which it subsequently used against Celsius’s $812 million obligation without adhering to previously established procedures.
Tether fails in its effort to have Celsius lawsuit dismissed, aiming to reclaim what now exceeds $4B of Bitcoin seized during Celsius’s bankruptcy proceedings
Being offshore won’t shield you from US courts – especially considering that nearly all Tether’s assets are based in the US#Tether pic.twitter.com/rdshox2n0c
— Novacula Occami (@OccamiCrypto) July 1, 2025
Celsius’s BTC Lawsuit Against Tether – Accusations of Tether’s Liquidation Resulting in Over $4B Loss in Bitcoin at Current Rates
Celsius contends that Tether’s operations during the summer of 2022 breached its lending contract, violated the principle of “good faith and fair dealing” as per British Virgin Islands law, and represented fraudulent and preferential transfers that could be reversed under US Bankruptcy Code.
The case originated from a margin call issued by Tether as Bitcoin’s price declined sharply. Celsius claims that Tether liquidated its collateral prior to an agreed-upon 10-hour delay, selling the Bitcoin at an average price of $20,656 below the crypto market rate and subsequently directing the proceeds to its own Bitfinex accounts.
In its legal filing, Celsius alleges that Tether’s liquidation of its BTC holdings resulted in a wrecked exceeding $4 billion worth of Bitcoin based on current valuations. Additionally, it claims Tether’s actions involved communications, personnel, and financial accounts based in the US.
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This is significant, as if substantiated, it would provide sufficient grounds for US jurisdiction, despite Tether’s registration in the British Virgin Islands and Hong Kong.
In an initial victory for Celsius, the US judge concluded that Celsius presented a credible case that the transactions and alleged misconduct were “domestic” in nature, dismissing Tether’s assertion that the claims are outside the purview of US bankruptcy law.
Last year, in August, Tether sought to dismiss the entire lawsuit, contending that the US court did not have jurisdiction and that Celsius’s accusations lacked valid claims. Although some charges were dismissed at that time, the court permitted Celsius’s principal claims regarding breach of contract, fraudulent transfer, and preference to advance.
Tether’s CEO in the Spotlight After Denying Intents for a Public Offering
In June, Tether CEO Paolo Ardoino announced that the company has no intention of going public, amid rampant speculation. Ardoino addressed rumors regarding a potential Tether IPO, categorically rejecting the idea.
This public refutation did not quell the discussions, as analysts suggest a public offering could position the stablecoin giant at a valuation exceeding $500 billion, surpassing established corporations like Walmart or Coca-Cola.
However, Ardoino described the $515 billion valuation as a “beautiful number,” indicating it might even underestimate Tether’s true worth, taking into account its considerable holdings of BTC and gold.
Tether’s primary product, the USD-backed stablecoin $USDT, ranks as the third-largest digital asset, trailing only Ethereum and Bitcoin, with a market cap exceeding $157 billion. It remains the most widely utilized stablecoin in the market, highlighted by its daily trading volume of $38 billion.
(SOURCE)
Circle’s USDC stablecoin, recognized as the second-largest USD-backed stablecoin, holds a trading market capitalization of $61 billion, with a daily trading volume of merely $7 billion. Circle recently made headlines after going public following a successful IPO. It has seen an 11% daily increase, trading at $192, with a trading market cap of approximately $42 billion.
Given that Tether’s USDT stablecoin processes almost the same daily trading volume as Circle’s total trading market cap, it is understandable why Paolo Ardoino perceives the $515 billion valuation for Tether as potentially understated.
Meanwhile, Tether is continuing to expand its presence in Africa. Just yesterday, it announced the signing of a Memorandum of Understanding (MoU) with the Zanzibar e-Government Authority (eGaz) to promote digital asset education and financial innovation.
The stablecoin provider intends to integrate its USD-backed $USDT and gold-backed $XAUT stablecoins into the Zanmalipo payment system, enhancing the options available for local users. This initiative is part of Tether’s long-term strategy to broaden digital asset adoption across the continent.
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