Bankrupt Crypto Lender Celsius Lawsuits

Bankrupt crypto lender Celsius has filed several lawsuits recently to reclaim billions for creditors from various crypto firms, including Tether.

Lawsuits Overview

Celsius’s lawsuits target Tether, Badger DAO, Compound, and Bancor, citing mismanagement and seeking recovery for losses that occurred before its bankruptcy.

Celsius vs. Tether

The significant lawsuit against Tether demands 39,542 bitcoin (over $2.4 billion), claiming they were collateral for loans made by Celsius. Tether has denied the allegations, labeling it as a meritless shakedown.

Celsius asserts that Tether pressured them for additional collateral during a market downturn, leading to inadequate liquidation decisions. Celsius contends that with proper opportunity, they would have met the collateral demand, avoiding severe market losses.

Celsius vs. Bancor

Another lawsuit filed against Bancor alleges that its impermanent loss protection mechanism was faulty from the start. Celsius claims Bancor’s founders knew about the inadequacies, which resulted in significant financial losses for Celsius.

Celsius vs. Badger and Compound

Celsius also sued Badger DAO and Compound Labs over exploits and liquidation events, attributing their financial losses to negligence and failures in operational protocols.

Conclusion

The future of Celsius’s legal endeavors is uncertain as they navigate complex financial issues post-bankruptcy. They recently settled with KeyFi founder Jason Stone, liquidating numerous assets.

Summary

Celsius is suing several crypto firms, including Tether and Bancor, seeking to recover billions after its bankruptcy due to alleged mismanagement and operational failures.