Core Viewpoint - Celsius Network has filed a lawsuit against Archblock Inc., alleging a multimillion-dollar fraud involving mismanagement of customer funds related to stablecoins [1][2]. Group 1: Lawsuit Details - The lawsuit was filed in the U.S. District Court for the Northern District of California, claiming that Archblock and its subsidiaries misrepresented their TrueCurrency tokens as fully collateralized [2]. - Celsius alleges that instead of backing the tokens with cash, Archblock funneled customer funds into speculative offshore investments while marketing the coins as risk-free [2]. - Celsius minted over $14 million worth of TrueCurrency assets between 2019 and 2022, relying on Archblock's assurances that each token was redeemable one-to-one for its fiat equivalent [3]. Group 2: Bankruptcy Context - During its bankruptcy process in 2023, Celsius attempted to redeem approximately $12.9 million in holdings but was allegedly denied by Archblock, citing lost access to reserves due to the collapse of escrow partners [3]. - Celsius, which filed for Chapter 11 bankruptcy in July 2022, was a crypto lending company that allowed users to deposit cryptocurrencies to earn yields or take loans [5]. Group 3: Related Legal Actions - In August 2024, Celsius also filed a lawsuit against Tether, seeking $3.5 billion in returns, damages, and legal fees related to misappropriated assets [6]. - The complaint against Tether included allegations that Celsius had pledged 39,542.42 BTC as collateral for a USDT loan, which was liquidated prematurely by Tether [7]. - Tether agreed to settle the lawsuit by paying $299.5 million [8].