Celsius has filed a $2.4 billion lawsuit against Tether, accusing it of misusing bitcoin collateral to settle debts and breaching their agreement.

Tether denied this, stating that it had acted according to their 2022 contract, which required additional BTC as collateral if prices fell. Tether claimed that Celsius ordered them to liquidate Bitcoin to cover an $815 million debt.

Tether's insistence on following the contract shows the challenges of navigating legal agreements in the rapidly evolving crypto space.