Court Approves Celsius’ $4 Billion Bitcoin Lawsuit Against Tether to Proceed

A United States judge has granted permission for the bankrupt cryptocurrency lender, Celsius, to move forward with its lawsuit against Tether, seeking $4 billion in damages. Celsius alleges that Tether engaged in manipulative practices regarding the price of Bitcoin back in 2017, ultimately causing substantial financial losses for Celsius. According to the suit, Tether allegedly artificially inflated the supply of Tether (USDT) to purchase Bitcoin, thereby driving up its price. Celsius further claims that this artificial price surge enticed them to acquire Bitcoin at inflated values, contributing to the company’s eventual bankruptcy. Tether has refuted these allegations, asserting that they are without merit and that Celsius is simply attempting to deflect blame for its own financial difficulties. Tether has vowed to vigorously defend itself in court. The case is significant as it underscores the potential risks associated with stablecoins and potential market manipulation. It also raises questions about the responsibility of cryptocurrency companies to safeguard their investors from losses.