Tether CEO Dismisses Celsius Network's $2B Fraud Claim as Baseless

Stablecoin issuer Tether has refused to take the fall for Celsius Network's Bitcoin (BTC) fraud claim. Paolo Ardoino, Tether CEO offered a concise

Stablecoin issuer Tether has countered claims made by bankrupt crypto lender Celsius Network in a recent lawsuit. The lawsuit alleges that Tether made “fraudulent” and “preferential” transfers of Bitcoin (BTC) to the tune of over $2 billion.

In response to the claims, Tether CEO Paolo Ardoino offered a concise explanation of the situation. He stated that the firm offered USDT to some of its customers, including Celsius Network. The arrangement involved providing the stablecoin pegged to the U.S. dollar in exchange for an overcollateralization in BTC.

Ardoino explained that the agreement stipulated that if the price of BTC fell below the margin call price, the borrower would be required to send more collateral. In the event that more collateral was not sent, Tether had the right to liquidate the customer's position.

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