Court Greenlights Celsius’ $4B Bitcoin Lawsuit Against Tether—Crypto’s Legal Showdown Heats Up

Bankruptcy judge gives Celsius the nod to pursue Tether for billions in Bitcoin—because nothing says 'stable' like a $4B legal brawl.

Subheader: The Crypto Domino Effect

Celsius—now in bankruptcy—just got handed the legal equivalent of a flamethrower. The target? Tether's alleged $4 billion Bitcoin stash. Forget 'stablecoins'—this is shaping up to be crypto's messiest courtroom drama since Mt. Gox.

Subheader: Why This Matters

If Celsius claws back even half that sum, it could send shockwaves through DeFi. Exchanges are already side-eyeing their reserves—after all, who needs regulators when bankrupt lenders turn bounty hunters?

Closing thought: Nothing unites crypto like a good old-fashioned asset grab. Just don't call it a 'recovery'—call it decentralized karma.

Tether USDT supply reaches $158 billion

Meanwhile, Tether USDT supply does not seem affected by the development, as it reached an all-time high of over $158 billion after a 3% gain in the past month. The surge in market cap shows how the stablecoin continues to grow and dominate the sector, even as Circle USDC appears to be the more regulatory-compliant option.

Beyond that, Tether has also been busy with other investments, including recent efforts to have a bigger say in decision-making at Juventus Football Club, which has over 10% stake. With $13 billion in profits for 2024, the company appears to have a solid financial footing.

However, critics continue to question the company’s status and whether it has sufficient reserves to back the over $158 billion in USDT it has issued. The recent ruling has now added to the concerns around the company.

What is next for Tether?

Although the full trial has not happened, the ruling is a setback for Tether. The firm tried to get the court to dismiss the case and described it as “shakedown litigation,” noting that Celsius is to blame for its failure.

However, the court decision suggests that Celsius might have a case. Still, it is too early to determine what will happen, and even Judge Glen acknowledged this. He noted that several factors, such as the time of the sale and whether it was over 10 hours, will determine whether the sale was legal.

Meanwhile, Tether is already facing some regulatory challenges in the US. With the Senate passing the GENIUS Act and the proposed regulation expected to become law, many believe the Tether business could be affected.

Experts believe that the proposed law will affect how stablecoin issuers operate and could make it difficult for offshore companies like Tether to continue operating in the US. However, the company had already said it might issue a new stablecoin for the US market.

Tether CEO Paolo Ardoino said this earlier this year and has promoted the GENIUS Act as welcome legislation. This differs from how the company has approached the European Union’s Market in crypto Assets (MiCA) regulations.

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