Economy
Tether to Defend Celsius Network’s $2bn Lawsuit
By Adedapo Adesanya
Top cryptocurrency stablecoin company, Tether, has said it would defend itself against litigation brought by Celsius Network Limited, a case it regarded as a “shake down”
On August 9, 2024, Celsius, acting through the Blockchain Recovery Investment Consortium, LLC, filed suit against Tether Limited, and certain of its affiliates, in the United States Bankruptcy Court for the Southern District of New York.
The stablecoin issuer asserts that Celsius Network’s lawsuit, filed with the United States Bankruptcy Court, is an attempt to “improperly impose the costs of Celsius’ mismanagement and failure on Tether.”
In a statement sent to Business Post, Tether vowed not to fall prey to “shameless litigation” and expressed confidence that the court would rule in its favour.
Tether, which issues USD₮, the biggest stablecoin by market capitalization, action follows revelations that Celsius Network wants the court to compel Tether to return $2 billion in bitcoin (BTC) lost due to alleged fraudulent transfers.
The claims arise out of a 2022 agreement under which Tether made USD₮ available to Celsius, in amounts that Celsius requested at the time.
“This baseless lawsuit against Tether proves the adage that “no good deed goes unpunished,” Tether said.
Under the agreement, Celsius posted Bitcoin (BTC) to Tether as collateral. However, as the price of BTC began to fall in June 2022, the agreement required Celsius to post additional collateral to avoid the liquidation of its BTC. When Celsius chose not to post additional BTC it directed Tether to liquidate the BTC collateral Tether held in order to close out its roughly 815 million USD₮ position with Tether.
Tether claimed that rather than recognising the clear validity of the agreement entered into years before Celsius’ bankruptcy, this lawsuit seeks to improperly impose the costs of Celsius’ mismanagement and failure on Tether.
“Over two years following its arm-length agreement with Tether—and armed with the benefit of hindsight—this lawsuit incredibly now seeks the return of approximately US$2.4 billion worth of BTC from Tether, despite the BTC being liquidated at Celsius’ direction and with Celsius’ consent at June 2022 prices,” it added.
The stablecoin issuer claimed that Celsius’ complaint is not only an “obvious misapplication” of the law but also raises substantial jurisdictional questions.
Tether also said that in the remote event of Celsius prevailing in court, the stablecoin issuer’s financial position is such that token holders will not be impacted.
“We look forward to responding in court to this contrived, meritless shakedown that will benefit nobody other than the lawyers, bankers and consultants involved in bringing this case.
“As we’ve said many times, Tether will never fall prey to shameless litigation money grabs. We will vigorously defend ourselves against the unwarranted allegations made against us, and we expect to prevail in this litigation.”
“As a result, even in the most remote scenario in which this baseless lawsuit will get somewhere, Tether token holders will not be impacted,” the statement concluded.
As of the time of this report, USD₮ is selling around $0.9999, down 0.04 per cent in the last 24 hours.
By Adedapo Adesanya
Nigeria’s security crisis is spreading southwards as jihadists and armed gangs step up attacks in parts of the country largely untouched by decades of violence.
Over the last few months, there had been an alarming increase in violence, especially in relatively low-conflict areas. The Nigerian government has long been fighting an array of jihadist groups, including Boko Haram and IS-linked factions, but largely in the North-East. However, some new groups are gaining footholds, spreading south.
Earlier this month, 162 people were killed in an attack in Kwara State. The gruesome murder in the central part of the country last week highlighted the fundamental shift in the nature and geography of the insecurity crisis facing Africa’s most populous nation.
The increased attacks come even as President Bola Tinubu declared a security emergency and the United States deployed troops to the nation, as part of cooperation efforts to tackle insecurity.
This weekend, at least 32 people were killed after gunmen launched simultaneous attacks on three separate communities in Niger State, which has the Federal Capital Territory (FCT) to the southeast and Kwara State to its southwest. The communities of Tunga-Makeri, Konkoso, and Pissa, all located in the Borgu area of Niger state, were targeted in early raids on Saturday, February 14.
According to Niger State police spokesman, Mr Wasiu Abiodun, six people died in the assault on Tunga-Makeri, adding that it was not clear how many people had been abducted.
Mr Abiodun said that Konkoso was also attacked, but gave no other details other than that security teams have been sent to the scene and a rescue operation for those who were abducted was under way.
A resident, Mr Abdullahi Adamu, from Konkoso, reportedly said 26 people were killed in the attack there, describing how the attackers were “operating freely without the presence of any security”.
The attack on Tungan Makeri reportedly began on Friday, when over 200 armed men stormed the village, shooting sporadically and setting several houses on fire.
There were also reports that an Air Force aircraft was sighted around Tungan Makeri after the initial attack, a development some residents believe forced the bandits to withdraw from the village.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited appreciated by 2.06 per cent on Friday, amid a rush for local equities due to encouraging earnings of companies for 2025.
Business Post reports that the buying pressure was across the key sectors of Customs Street yesterday, with the banking index growing by 2.49 per cent. The energy industry appreciated by 2.05 per cent, the consumer goods counter grew by 0.78 per cent, the insurance space improved by 0.64 per cent, and the industrial goods sector expanded by 0.44 per cent.
At the close of trades, the market capitalisation went up by N2.367 trillion to N117.027 trillion from N114.660 trillion, and the All-Share Index (ASI) gained 3,687.45 points to close at 182,313.08 points compared with the previous day’s 178,625.63 points.
Cornerstone Insurance, Infinity Trust, and Nestle Nigeria appreciated by 10.00 per cent each to sell at N6.38, N9.90 and N2,662.00, respectively, while Okomu Oil rose by 9.99 per cent to N1,327.00, with RT Briscoe up by 9.97 per cent to N17.42.
Conversely, SAHCO depleted by 10.00 per cent to M135.00, Guinness Nigeria lost 9.97 per cent to trade at N103.00, Omatek shrank by 9.39 per cent to N2.99, NPF Microfinance Bank decreased by 6.51 per cent to N5.60, and eTranzact slipped by 6.33 per cent to N10.80.
A total of 53 stocks ended in the green side and 33 stocks finished in the red side, representing a positive market breadth index and strong investor sentiment.
Data showed that 936.4 million shares valued at N52.7 billion were transacted in 50,068 deals on Friday versus the 698.3 million shares worth N28.438 billion traded in 50,886 deals on Thursday, indicating a rise in the trading volume and value by 34.10 per cent, and 85.56 per cent apiece, and a slip in the number of deals by 1.61 per cent.
First Holdco closed the session as the most active equity with 106.3 million units worth N5.1 billion, Zenith Bank transacted 72.6 million units valued at N5.7 billion, United Capital traded 45.4 million units for N963.2 million, GTCO sold 45.0 million units worth N4.9 billion, and Fidelity Bank exchanged 31.4 million units valued at N639.0 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose further by 0.86 per cent on Friday, February 13, with the market capitalisation growing by N20.27 billion to N2.378 trillion from the previous session’s N2.357 trillion, and the NASD Unlisted Security Index (NSI) rising by 33.87 points to 3,974.77 points from the 3,940.90 points it ended a day earlier.
The improvement recorded by the bourse yesterday was influenced by six price gainers led by Okitipupa Plc, which went up by N18.00 to sell at N260.00 per share compared with the previous day’s N242.00 per share.
Further, Central Securities Clearing System (CSCS) Plc added N3.39 to quote at N80.47 per unit versus N77.08 per unit, IPWA Plc chalked by 31 Kobo to finish at N3.44 per share versus N3.13 per share, Lagos Building Investment Company (LBIC) Plc gained 31 Kobo to settle at N3.41 per unit versus N3.10 per unit, Afriland Properties Plc appreciated by 31 Kobo to N16.51 per share from N16.20 per share, and Food Concepts Plc increased by 8 Kobo to N3.28 per unit from N3.20 per unit.
There were three price losers, led by MRS Oil Plc, which weakened by N10.00 to close at N170.00 per share compared with Thursday’s price of N200.00 per share, FrieslandCampina Wamco Nigeria Plc lost N2.59 to sell for N65.52 per unit compared with the preceding session’s N68.10 per unit, and Geo-Fluids Plc depreciated by 33 Kobo to N3.30 per share from N3.63 per share.
During the session, the volume of securities transacted by the market participants went up by 9.5 per cent to 9.4 million units from 8.6 million units, the value increased by 1,206.5 per cent to N703.6 million from N53.9 million, and the number of deals grew by 7.1 per cent to 45 deals from 42 deals.
CSCS Plc remained the most traded stock by value (year-to-date) with 27.1 million units exchanged for N1.5 billion, followed by Resourcery Plc with 1.05 billion units traded at N408.6 million, and Geo-Fluids Plc with 29.9 million units valued at N152.6 million.
Resourcery Plc ended the day as the most traded stock by volume (year-to-date) with 1.05 billion units sold for N408.6 million, followed by Geo-Fluids Plc with 29.9 million worth N152.6 million, and CSCS Plc with 27.1 million units sold for N1.5 billion.
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