Tether has lost its bid to reject a claim from the administrators of the bankruptcy Celsius Network Make sure to tick back billions of dollars “of” incorrect “liquidated BTC Tokens.
June 30 led a decision By Judge Martin Glenn in the US Bankruptcy Court of the Southern District in New York in the case that Pittar Celsius’s debtors against Tether, issuer of the market -leading USDT Stablecoin. (Comically explains the archiving that it is the court “punished states”, which we will assume is a typo, but hello, reasons for appeal?)
First a little background. The action was submitted in August last year based on the debtors’ belief that Tether had crossed legal lines by selling almost 40,000 BTC-tokens worth ~ 4 billion dollars Celsius had set up as collateral for USDT-based loans. Celsius went bankrupt In July 2022 in a DIS of charges of penalty fraud, for which founders Alex Mashinsky Where Sentenced to 12 years in prison Earlier this year.
Celsius was effective a Ponzi schedule from the startforce Mashinsky to constantly borrow from a source to pay others. The latter category included Celsius customers, who bought and fenced the platform’s original Cel token based on Mashinsky’s promises of massive returns to do so.
Tether’s tape to Celsius could only provide loans that the company could not get from a bank. As Mashinsky’s own e -mail messages Enter, Tether used Celsius to earn “all their American customers” including market creators CumberlandThe JumpAnd others.
But when 2022’s wave of crypto messages, bankruptcies and implosions began, BTC’s price began to fall. This caused Tether to issue marginal calls that required additional collateral to support $ 512 million in USDT that Celsius had borrowed.
During a six -week period ending June 12, 2022, Celsius sent almost 17,000 additional BTC to Tether. These BTC transfers occurred during the 90-day period before Celsius’ application for bankruptcy, which according to the US Bankruptcy Act, is entitled to be ‘split back’ by bankruptcy administrators.
Celsius also borrowed another $ 300 million in USDT during this period, for which it transferred another 10,700 BTC to Tether. Over 2,200 of this BTC were excess collateral.
When Celsius began to circle the drain, Tether declined to give additional USDT loans to Celsius and liquidated BTC set up as security. This liquidation did not honor the ten -hour waiting time after a marginal call that was determined according to the loan’s terms.
A changed agreement signed by the parties in January 2022 that, if Tether liquidated Celsius BTC, some surplus income would be paid to Celsius. Instead, Tether BTC sold to what Celsius claims were prices under the market and held revenue for himself, a measure that Celsius claims the company cost $ 100 million.
In November last year, Tether archived to reject the Celsius claimWith reference to the plaintiff’s lack of position, lack of personal jurisdiction and the plaintiff’s failure to state a claim on which exemption may be granted.
Last week, Judge Glenn rejected most of Tether’s arguments, but dismissed the bill IV of the complaint, which claimed that Tether had breached a covenant of good faith and fair trade under the laws of the British Virgin Islands (Tether’s Home Base at that time) by liquidating BTC. However, Glenn gave Celsius leave to change his complaint.
As of August last year, bankruptcy administrators had distributed $ 2.5 billion to 251,000 Celsius Citizens, which corresponds to about two-thirds of the total number of former customers. Many of the remaining 121,000 creditors had not yet claimed their guilty funds, some as the amounts were trivial, other for unknown reasons (including the opportunity to arrive would require them to identify).
Tether is not at all the only unit in the sights of the Celsius administrators. In March Celsius Tuned chain analysisaccuses blockchain analytics of performing a deliberately fraudulent Revision of Celsius’ assets under management 2020 and misleading Celsius customers and investors.
StableCoin-Based Stablechain Called Stable
In other tie news, Bitfinex Digital Asset Exchange (who share ownership with tether) only announced Details of its Previously suggested plans To start stable, “a dedicated warehouse 1 stablechain optimized for payments with USDT.”
This “Stablechain” aims to reduce transaction fees and accelerate decommissioning times, while making the whole process available to everyday users and acts as “Rails for the Real World.”
The Official stable Requirements that USDT is “the world’s most used asset” (the quote behind this statement seems to be missing), and Bitfinex believes that such a popular way of transferring funds “deserves its own chain.”
Left unsaid is the probable view that the owners of Bitfinex and Tether deserve their own transaction fees, rather than letting third-party USDT-friendly networks as Throne (where USD 80.7 billion currently resides) and Ethereum ($ 73.8 billion) take its cut.
Stable seems to be part of a trend where crypto companies launch their networks on which native token is one under their control. Take base, Ethereum Layer 2 network launched by Coin base (Nasdaq: Coins) exchange, which relies on USDC Stablecoin issued by Circle (Nasdaq: CRCL), where coinbase has a share share. The goal seems to be to ensure a share in all activities on the chain, at least the revenue -generating type.
According to Bitfinex, the stable will use USDT as its ‘Gas’ token For transaction fees, “Eliminate the complexity of keeping additional, volatile symbols.” The fees will be “well below a fraction of a cent”, while Peer-to-Peer USDT transfers will be gas-free. The network comes with its own stable wallet, which will contain “social login, debit/credit card integration and human readable wallet.”
Bitfinex claims that its new network will be able to handle “thousands of transactions per second” while the institutions “guarantee” guaranteed block space, scalable batch treatment and robust security measures. “Bridging of cross -chains will be possible with USDT0 and Layer technology, while decentralized app (DAPP) Developers have been told to go nuts on Stablecoin use cases.
Stable’s roadmap is currently available in ‘Phase 1’, which includes starting StableWallet and implementing Stablebft, alias ”A customized POS (proof of evidence) consensus protocols built on Cometbft. “(BFT, if you wondered, stands for Byzantine Fel tolerance.)
Phase 2 means improving the transaction enactment through Optimistic parallel executionLaunch of USDT transfer unit and offers dedicated block space to companies. The last phase involves the above -mentioned DAPP tools and a consensus mechanism based on Directed Acyclical graphs.
Last month, the crypto -contractor Gabriel Abed was long appointed as chairman of Binance Exchange is the first board Last year was identified as a strategic investor in the stable.
Tether: Great in Bolivia
While StableCoins appear to be on the way of mainstream acceptance as payment mechanism In North America and Europe, there are markets where Tether does not seem to be able to participate because of its inability to comply with legislative restrictions.
In the European Union, Tether has effectively Selected of Markets in crypto assets (Mica) Stablecoin frameworks due to the requirement that major issuers should keep the majority of their Fiat reserves in cash in local banks. In America, Two different StableCoin bills will allow clutch a long mercy period but will also make demands Dether has been unwilling to do on his own, including Send their reserves to an extensive third -party audit.
Tether CEO Paolo Ardoino, as Famous Stable’s upcoming launch last month and where was in turn credited for “advice” The stable team has begun to publicly explain the company’s “core mission” to focus on supporting “Growth markets where access to stable financial infrastructure is urgent.”
Last month Ardoino Tweetad that “(i) n Bolivia, real prices in stores appear in USD ₮.” The tweet included images of products for sale at an airport for customs.
Another photo showed explanatory signage: “Our products are priced in USDT (Tether), a stable Cryptocurrency with a reference price reported daily by the Central Bank of Bolivia, based on Binance Cryptocurrency.
Recently, Reutants Reported that Bolivierna increasingly turned to tokens as the USDT to secure themselves against the depreciation of the local currency. In November last year Bolivia Banco can be an offer USDT -care to their bank customers.
However, a former Bolivia Central Bank -operating director told Reuters that daily USDT volumes in the country are only approximately $ 600,000. It is a pittance compared to the Tradfi volume of $ 18-20 million, while cash-based black market sales are about $ 12- $ 14 million.
Bolivia’s central bank reported Last week, transactions with electronic payment channels and instruments for virtual assets amounted to $ 294 million during the first half of 2025, an increase of 530% during the same period last year.
The bank said that these digital tools “have facilitated access to transactions in foreign currency, including transfers, small purchases and payments, favors micro and small business owners in different sectors, as well as families across the country.”
Ardoino finds beautiful game not so beautiful up close
Tether is the undeniable Stablecoin market leader, with the USDT’s market captain that passes $ 158.3 billion on July 2, a new record high. But it does not seem to impress the owners of Juventus FC, a fixture in Italy’s series A Football League.
In February, Tether announced That it had taken a share of 8.2% in Juventus, which marked the first investment of a digital asset company in a large European football club. The following month, Tether announced that its Juventus effort had increased to 10.12%, which represented 6.18% of the club’s voting rights. In April, the proportion had increased to 10.7%, which corresponded to a total exposition of approximately EUR 128 million.
But on June 2, Ardoino Tweetad that the club – which is a majority owned by The family’s lamb The investment company Exor NV – had not allowed Tether to participate in a planned capital increase that began in April. Ardoino later complained in an interview that Tether had only had “very, very limited” communication with the club and exor.
June 25, Bloomberg Reported that Tether still had not met Juventus but pushed the club to allow Tether to a seat on the board. Juventus has reportedly said that it plans to meet Tether managers when its current season ends, after which Exor will “evaluate its position” regarding Tether.
It is almost as if the Agnelli family had done so any reason Thinking to collaborate with Tether may not be the best for the club’s image.
Look: Teranode is the digital spine in bitcoin
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