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Tether Was Playing a Risky Game, a New Celsius Suit Reveals
The bankrupt crypto lender’s legal action brings into relief the backroom maneuvering that barely shielded Tether from widespread market turmoil.
Doing so was a violation of the terms of an agreement between the pair, the lawsuit claims, but allowed Tether to walk away with its pockets fully replenished instead of having its funds locked in the bankruptcy, as was the case with others owed money by Celsius. In a scathing riposte posted on its site, Tether cast the lawsuit as a “shakedown” designed to deflect the blame for failures by Celsius, which gave explicit consent for the trove of bitcoin to be liquidated, it claims. If Tether had failed to liquidate the $800 million in collateral posted by Celsius before its fall into bankruptcy, accounts for June 2022 show, USDT would no longer have been fully backed by readily available assets, potentially undermining the all-important stability of the token’s price.
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