Key Takeaways:
- A U.S. judge ruled that Celsius can proceed with its $4 billion lawsuit against Tether over an allegedly improper liquidation of 39,500 BTC.
- Celsius claims Tether violated lending terms and U.S. bankruptcy laws by executing a premature fire sale and transferring proceeds to Bitfinex-related accounts.
- The court found sufficient U.S. ties to the transactions, dismissing Tether’s jurisdictional objections but dropping some lesser claims.
A U.S. bankruptcy judge has allowed Celsius Network’s $4 billion lawsuit against Tether to proceed, rejecting Tether’s attempt to fully dismiss the case.
Celsius alleges that Tether improperly liquidated over 39,500 BTC in June 2022 to cover an $812 million debt, violating the terms of their lending agreement.
JUST IN: A U.S. judge has cleared Celsius to sue Tether over allegedly seizing its Bitcoin. pic.twitter.com/ELAN3Hu5YH
— ChainDesk (@ChainDesk_) July 2, 2025
The firm claims Tether executed a rushed “fire sale”, selling Bitcoin before a required 10-hour waiting period at an average price of $20,656 – below market value – and then transferred proceeds to Bitfinex-linked accounts.
Celsius argues this action breached contractual obligations, violated British Virgin Islands law, and involved fraudulent and preferential transfers under U.S. bankruptcy regulations.
While Tether challenged U.S. jurisdiction, the judge found Celsius had sufficiently shown that U.S.-based personnel, communications, and financial activity were involved, allowing key claims – breach of contract, fraudulent transfer, and preference claims – to move forward.
Some aspects of the suit were dismissed.
Celsius emerged from bankruptcy in January 2024 after an 18-month restructuring and is now repaying creditors.
Separately, Tether CEO Paolo Ardoino stated in June that the company has no plans to go public, though he acknowledged speculation of a potential $500 billion IPO valuation.
Tether continues to expand its Bitcoin holdings and recently became the majority owner of Twenty One Capital, one of the largest corporate Bitcoin holders, with nearly 37,230 BTC worth around $3.9 billion.
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