The bankruptcy judge has allowed Celsius to move forward with a $4.3 billion lawsuit against Tether.

According to Deep Tide TechFlow news on July 3, reported by The Block, New York bankruptcy judge Martin Glenn recently ruled to allow the cryptocurrency lending platform Celsius to proceed with its $4.3 billion lawsuit against the stablecoin issuer Tether. Celsius accuses Tether of improperly liquidating 39,542 Bitcoins, valued at approximately $4.3 billion (based on current market prices), without adhering to the 10-hour waiting period stipulated in their agreement. The judge determined that the so-called verbal permission from Celsius's former CEO Alexander Mashinsky was "insufficient" to authorize the liquidation action, and the failure to adhere to the waiting period outlined in the agreement may constitute a breach of contract. Tether denies any wrongdoing, claiming that the lawsuit attempts to shift the costs of Celsius's mismanagement onto Tether. Celsius filed for bankruptcy in 2022 and completed its restructuring plan in November 2023.