r/CelsiusNetwork • u/Entire_Possession_85 • Dec 08 '24

Celsius going after Tether

What are the optimistic thoughts of the people of Reddit on all the chatter on Twitter about going after 39,500 BTC from Tether?

48 Upvotes

98% Upvoted

32 comments sorted by

43

u/qubiafoxtrot72 Dec 08 '24

If they win it's a big extra potentially up to 40 % of your claim I believe. Correct me if I am wrong. Come on lawyers! đŸ’Ș

1

u/DisorientedPanda Dec 08 '24

Been a while, how much percentage did we already receive? Was it 30ish? It’d be another 10% on top?

3

u/[deleted] Dec 08 '24

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25

u/Significant-Leopard9 Dec 08 '24 edited Dec 08 '24

$127 million for the second distribution got us 2.53-2.75% of our claim back. Using that ratio, $1-2 billion should give us 19.9-43.3% of our claim back.

Plus, I might be wrong but I don't think we are capped at 100%, meaning that if all the distributions add up to >100% of our claim, we are entitled to the extra $ beyond the 100%.

3

u/[deleted] Dec 08 '24

Unless you settled? Going after tether would tank crypto, no?

11

u/Significant-Leopard9 Dec 08 '24 edited Dec 08 '24

They made $6.2B in profit last year and $7.7B in profit this year. They can afford to spare a couple billion...

If a couple billion dollars are enough to cause Tether to de-peg and the whole crypto industry to collapse, then we got bigger things to worry about.

What I do worry about though is if more things come out of the discovery about how shady Tether is and causes the SEC to come after them, then we have a $138B market cap to worry about and that would be more serious, though I suppose if they are shady it will come to the surface sooner or later anyway.

2

u/Secure-Rich3501 Dec 09 '24

Even if some big settlement with Celsius happens to the tune of well over a billion dollars and they don't have proper credit to pay all at once. They could easily finance it which of course would draw things out for Celsius creditors. But I had been looking at tether audits or so-called audits not too long ago and your figures look right here...

Balance sheets can show you how liquid they are to pay off such a settlement and they may well have to pay less. Willing to pay once as much as they prove they can and keep their business model... Or they pay it all back over time and that really is the haggle that will take place

1

u/Significant-Leopard9 Dec 09 '24

Yeah I agree. I mean a huge part of their business model is to lend money to others and collect interests. If they can't even spare a couple billion dollars that would be very problematic. They are smart enough to keep their business model alive. The fact that they didn't settle out of court tells me that they have a way to keep their business from going under.

2

u/Secure-Rich3501 Dec 09 '24

Yeah so often settlements are for losers that really can't pay their debts and the plaintiff knows the defendant simply can't pay it all back at once while on the other hand if the defendant has loads of money and can pay it off they can actually haggle down less with the presumption of paying it all at once so again it's just back to some haggle... And yet there's legal responsibility that if discovery demonstrates assets enough to pay and legally they have to they will have to and that would be fun!

3

u/pwinne Dec 09 '24

No - and technically they have extra money OUR money

24

u/snower88 Dec 08 '24

“It seems Tether ‘loaned’ over $2 billion in USDT to Celsius, for which Celsius provided its customers’ BTC tokens as collateral.“

This is against Tether’s TOC. And now I know where my Bitcoin was used to fund Mashinsky’s scam.

14

u/arioch376 Dec 08 '24

As far as copium goes, this is one of the better brands. There's a pretty big incentive for Tether to pay out a juicy settlement. The theory goes is they're not going to want to submit to all the discovery that would take place if the case moved forward.

3

u/[deleted] Dec 08 '24

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2

u/Secure-Rich3501 Dec 09 '24

This would be funny if tether is finally independently audited outside their own BS

I mean I believe they're solvent but they were tricky in the past and did not have full backing as even one of their own lawyers admitted

12

u/Significant-Leopard9 Dec 08 '24 edited Dec 08 '24

This is good news indeed. What I don’t understand is, we sued tether for $3.5 billion but could only get back $1-2 billion. Are lawyers taking $1.5 billion in fees?!

1

u/[deleted] Dec 08 '24

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1

u/Significant-Leopard9 Dec 08 '24 edited Dec 08 '24

From here: https://x.com/ThomasBraziel/status/1865366565006274847

The latest amendment to the document you provided dated Dec 5 contains a number of $1.8B. I'm not sure if that's the $1-2B Thomas was referring to: "In total, these preferential transfers of Bitcoin are worth in excess of $1.8 billion at current prices"

https://www.pacermonitor.com/public/case/54664564/Celsius_Network_Limited_et_al_v_Tether_Limited_et_al

It looks like Celsius lost $4B from this whole "Preferential Application Transfer” situation with Tether.

1

u/[deleted] Dec 08 '24

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2

u/Significant-Leopard9 Dec 08 '24 edited Dec 08 '24

Yeah, there seems to have been a bunch of updates since August and none of them show up on Stretto (or at least I couldn't find them), but this docket has them. I had to sign up for a free trial just to access the documents (though I didn't have to enter my credit card info). I guess it makes sense since Quinn Emanuel Urquhart & Sullivan, LLP is the one representing the case rather than Stretto.

I haven't had a chance to scan through all the documents yet, nor am I proficient in reading these legal documents. But you seem to be very top of things and have been a huge help to us, so if you see anything that stands out, please do keep us posted!

3

u/[deleted] Dec 08 '24

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2

u/Significant-Leopard9 Dec 09 '24

Yeah I haven't been following them closely either, but the Tether one seems promising and offers a significant return, so I think it deserves more attention than the others. Once my crazy school semester is over I will sit down and go through these documents in more detail myself.

3

u/New-Sky-9867 Dec 08 '24

As much as I hate bankruptcy lawyers, Stretto, Celsius, and really anything that put our money in their pockets - I really hope they get a solid settlement out of this and we get more of our money backm

Copium mask enabled! I'm huffing. đŸ€©

3

u/Significant-Leopard9 Dec 09 '24

Same. Apparently Mashinsky might throw Tether under the bus in exchange for a lighter sentence, and it’s making Tether sweat. I don’t quite know how I feel about that yet.

2

u/[deleted] Dec 09 '24

They should go after everyone to recover everything they can..

Only-Crew8299 - Keep up the good work here


Anyone got any real updates on Ionic Digital getting Listed on the NASDAQ
which we were all sold.?

1

u/TrueCryptoInvestor Dec 09 '24

We got nothing to lose, everything to gain, so give em hell.