Celsius vs Tether: Court Ruling Marks Key Moment In Cross-Border Crypto Litigation

A recent ruling from the U.S. Bankruptcy Court has paved the way for Celsius Network to continue its $4 billion lawsuit against stablecoin issuer Tether. The dispute centres on the alleged improper liquidation of 39,500 Bitcoin – now worth approximately $4 billion – held by Tether as collateral for an $812 million loan. Celsius argues that Tether violated key contractual terms, including a mandatory 10-hour waiting period before liquidation.

While the court dismissed certain claims linked to the British Virgin Islands' duty of good faith and fair dealing, the decision to let the core contractual dispute proceed is being closely watched across the cryptocurrency and legal sectors.