Tether Pays $299.5 Million to Celsius Bankruptcy Estate Following Legal Settlement

• In a major development, Tether pays $299.5 million to Celsius , following legal settlement over Bankruptcy.

• The lawsuit involved claims related to collateral transfers and liquidations that occurred in the lead-up to Celsius Network’s July 2022 bankruptcy filing

After a long legal battle, it seems Tether and Celsius have come to legal settlement. According to the report, BRIC a joint venture between GXD Labs and VanEck have concluded the legal issues and settled.

Tether pays $299.5 million to Celsius in Bankruptcy Case

The Blockchain Recovery Investment Consortium (BRIC) a joint venture between GXD Labs and VanEck has announced that Tether has paid $299.5 million to the Celsius Network bankruptcy estate.

The settlement comes after an adversary proceeding was filed in August 2024 in the United States Bankruptcy Court for the Southern District of New York.

The lawsuit involved claims under the bankruptcy code and issues related to collateral transfers and liquidations that occurred in the lead-up to Celsius Network’s July 2022 bankruptcy filing. This payment marks a significant development in one of the most complex digital asset bankruptcies in recent years. In 2022 July 13th, Celsius filed for chapter 11 bankruptcy.

BRIC’s Role in the Settlement

“We are pleased to have resolved Celsius’s adversary proceeding and related claims against Tether,”

Said David Proman, Managing Partner of GXD Labs and affiliate of Atlas Grove Partners.

“In addition, we are pleased with the timeliness with which the settlement was achieved.”

The litigation was managed through the Blockchain Recovery Investment Consortium (BRIC), established in early 2023 to maximize recoveries in complex digital asset bankruptcies like Celsius.

BRIC was appointed as the Complex Asset Recovery Manager and Litigation Administrator by the Debtors and Unsecured Creditors’ Committee in January 2024, shortly after Celsius exited bankruptcy protection.

Managing Illiquid Assets for Creditor Recovery

BRIC continues to oversee a portfolio of illiquid assets and litigation claims on behalf of the Celsius bankruptcy estate, working to return value to creditors during the wind-down process.

The consortium is led by an experienced team including R. Christian Wyatt and David Proman of GXD Labs, and Pranav Kanade and Matthew Babinsky of VanEck, bringing deep expertise in complex asset recovery, litigation management, and digital asset markets.

Legal counsel for BRIC in the settlement was provided by Benjamin I. Finestone, co-head of Quinn Emanuel Urquhart & Sullivan, LLP’s bankruptcy and restructuring group.

A Key Step in Digital Asset Bankruptcy Recovery

This $299.5 million settlement highlights the growing sophistication of recovery efforts in crypto bankruptcies, where specialized entities like BRIC are playing an increasingly central role. It also demonstrates the effectiveness of targeted legal strategies to resolve complex disputes between major digital asset players.

With this legal issue concluded, it paves a way for the crypto firms and other digital assets companies on ways to deal with such matters in the future. For now, it's a matter to wait and see how the legal settlement will impact the crypto space and possible cases that arises in the future.

Previously: Kenya passes landmark digital asset bill.