PANews reported on July 2 that according to Cointelegraph, a US judge ruled that Celsius Network's multi-billion dollar lawsuit against Tether can continue. According to court documents filed in New York on Monday, Celsius accused Tether of liquidating more than 39,500 of its bitcoins in June 2022 and using the proceeds to repay Celsius's $812 million debt without following the agreed procedures. Celsius claimed that Tether's actions violated the loan agreement between the two parties, violated the "good faith and fair dealing" required by British Virgin Islands law, and constituted avoidable fraud and priority transfer under the U.S. Bankruptcy Code.

The lawsuit centers on margin calls issued by Tether during the Bitcoin price crash. Celsius argues that Tether sold its collateral before the 10-hour waiting period, liquidated BTC at an average price of $20,656 (below market levels), and then transferred the assets to its own Bitfinex account. The filing alleges that Tether’s liquidations cost Celsius more than $4 billion worth of BTC (at current prices). Celsius further claims that Tether’s actions involved communications, personnel, and financial accounts located in the United States, which are sufficient to subject it to U.S. jurisdiction despite Tether’s domicile in the British Virgin Islands and Hong Kong.