Celsius has filed a lawsuit against Tether, seeking approximately $3.5 billion in Bitcoin returns, damages, and legal fees. The lawsuit stems from a loan agreement during Celsius' bankruptcy proceedings, where Celsius provided 39,542.42 BTC as collateral in exchange for Tether's stablecoin, USDT. As Bitcoin's price fell, Celsius was required to add more collateral but claims that Tether liquidated the Bitcoin without giving them the opportunity to do so. Celsius is now seeking the return of 57,428.64 BTC, which includes additional Bitcoin transfers, or its equivalent value of around $3.48 billion as of August 10, 2024. Tether, however, dismisses the lawsuit as baseless and asserts that Celsius directed them to liquidate the BTC collateral when they chose not to post additional collateral.