Crypto & Blockchain Daily Brief Sunday, August 11, 2024

Celsius Network, a cryptocurrency lending platform, has filed a lawsuit against Tether Limited, the company behind the stablecoin USDT, to recover $2.4 billion in Bitcoin that was lost in fraudulent transfers. The lawsuit alleges that Tether played a role in the theft of the funds by allowing the hackers to convert the stolen Bitcoin into USDT stablecoins. Celsius claims that Tether knew or should have known about the suspicious transactions and failed to take action to prevent them. The lawsuit accuses Tether of aiding and abetting the hackers by providing them with the means to cash out the stolen funds. Celsius is seeking the return of the lost Bitcoin, as well as damages for the harm caused by the fraudulent transfers. The lawsuit highlights the risks associated with using stablecoins like USDT, as they can be used by hackers to launder stolen funds. Tether has responded to the lawsuit by denying any involvement in the fraudulent transfers and stating that it takes its compliance obligations seriously. The company has also emphasized that it cooperates with law enforcement authorities to combat illegal activities in the cryptocurrency space. This lawsuit between Celsius Network and Tether sheds light on the challenges and risks faced by participants in the cryptocurrency industry, particularly in terms of security and regulatory compliance. It underscores the importance of robust security measures and due diligence when engaging in transactions involving digital assets.