Defunct crypto lending platform Celsius Network is taking legal action to recover billions of dollars worth of Bitcoin (BTC) that it previously transferred to USDT issuer Tether.
In a new complaint filed with the Southern District of New York, Celsius says it is seeking the return of 39,542.42 BTC worth $2.31 billion that were transferred as collateral for the stablecoins that it borrowed from Tether.
Celsius alleges that Tether used the asset as payment for its outstanding loan and for less than the reasonably equivalent value of the crypto asset when it became insolvent.
Celsius also wants to recover 15,658.21 BTC ($915.96 million) and an additional 2,228.01 BTC ($130.33 million) that were sent as collateral to Tether during a 90-day period before it filed for bankruptcy.
Lawyers for Celsius say these are preferential transfers under the Bankruptcy Code.
“These preferential and fraudulent transfers of Bitcoin should be avoided and recovered from Tether, and Tether should be ordered to pay damages for its unlawful application of collateral.”
In response, Tether says the complaint is a meritless shakedown that will only benefit the lawyers, bankers and consultants involved in the suit.
“The complaint is undermined by the actual facts underlying the agreement between Celsius and Tether, relies on an obvious misapplication of the law, ignores the numerous defenses that Tether has to the claims asserted against it and raises substantial jurisdictional questions.”
The stablecoin issuer says it plans to respond in court.
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