BREAKING: Celsius Wins Court Approval to Sue Tether Over $4B Bitcoin Dispute

A New York bankruptcy judge just greenlit Celsius Network's lawsuit against Tether—setting the stage for a crypto courtroom clash over $4 billion in Bitcoin.

The showdown comes as Celsius attempts to claw back funds from what they allege were 'preferential transfers' to stablecoin giant Tether before their 2022 collapse.

Legal experts predict this could become a landmark case for crypto bankruptcies—with everyone from retail bagholders to institutional vultures watching closely.

Meanwhile, Tether maintains its signature poker face—because when you print money for a living, legal fees are just another cost of doing business.

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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