Celsius Network is going after Tether. The bankrupt crypto lender filed a lawsuit demanding the return of $3.35 billion worth of Bitcoin. And beyond any doubt, this is a story that might have an unpredictable outcome with a massive influence on the market.
The legal drama kicked off in New York's Southern District court. Celsius wants its Bitcoin back, pronto.
Here's the lowdown: Celsius transferred 39,542.42 BTC to Tether as collateral. That's a whopping $2.31 billion at current prices.
But that's not all. The lender is also after another 17,886.22 BTC, worth about $1.05 billion.
Celsius claims Tether used the assets to pay off outstanding loans. They say it happened when Celsius was going belly-up.
The lender's lawyers aren't pulling any punches. They're calling it a "preferential transfer" under bankruptcy law.
"These transfers should be avoided and recovered," Celsius's legal team stated. They want Tether to cough up damages too.
Tether's not taking this lying down, in case you wondered, as they've resolutely dismissed the lawsuit as a "meritless shakedown." That implies they are going to stand their ground.
"The complaint is undermined by actual facts," Tether fired back. They're planning to duke it out in court.
This legal tussle is shaping up to be a real crypto slugfest. It's anyone's guess how it'll play out.
The crypto world is watching closely. This case could set some serious precedents for the industry.
As the drama unfolds, one thing's clear: there's no love lost between these former crypto allies.