Key Takeaways
- Tether has settled all claims relating to the Celsius bankruptcy case.
- The settlement resolves long-standing disputes regarding Tether’s role in liquidating Celsius loans during the lender’s 2022 collapse.
Tether has settled all claims related to the Celsius bankruptcy case, CEO Paolo Ardoino announced today. The agreement resolves disputes between Tether and Celsius, a crypto lending firm that filed for bankruptcy in 2022.
Tether had previously described the litigation as an unfounded attempt by Celsius to extract funds during its bankruptcy proceedings. The stablecoin issuer maintained it was defending against claims initiated by the lending platform.
The disputes stemmed from Tether’s involvement in liquidating Celsius loans during market volatility that contributed to the lender’s collapse. Celsius filed for Chapter 11 bankruptcy protection in July 2022 after freezing customer withdrawals amid a liquidity crisis.
The settlement marks the resolution of one of the remaining legal challenges from Celsius’s bankruptcy case, which has been unwinding for over three years.
Source: https://cryptobriefing.com/tether-resolves-celsius-bankruptcy-case/