{"id":5060,"date":"2025-10-14T21:16:24","date_gmt":"2025-10-14T21:16:24","guid":{"rendered":"https:\/\/digkrypton.com\/index.php\/2025\/10\/14\/tether-pays-300-million-to-settle-4-5-billion-celsius-bankruptcy-claims\/"},"modified":"2025-10-14T21:16:24","modified_gmt":"2025-10-14T21:16:24","slug":"tether-pays-300-million-to-settle-4-5-billion-celsius-bankruptcy-claims","status":"publish","type":"post","link":"https:\/\/digkrypton.com\/index.php\/2025\/10\/14\/tether-pays-300-million-to-settle-4-5-billion-celsius-bankruptcy-claims\/","title":{"rendered":"Tether Pays $300 Million to Settle $4.5 Billion Celsius Bankruptcy Claims"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

Tether Pays $300 Million to Settle $4.5 Billion Celsius Bankruptcy Claims<\/a><\/p>\n

<\/div>\n

Stablecoin issuer Tether has agreed to pay $299.5 million to the Celsius Network bankruptcy estate, settling years of litigation tied to the crypto lender\u2019s 2022 collapse.\u00a0<\/p>\n

The payment is far below the nearly $4.5 billion Celsius originally sought in bitcoin.<\/p>\n

The Blockchain Recovery Investment Consortium (BRIC) \u2014 a partnership between VanEck and GXD Labs \u2014 announced the settlement<\/a> Tuesday, saying<\/a> it settles \u201call issues\u201d between Tether and the Celsius estate.\u00a0<\/p>\n

\u201cWe are pleased to have resolved Celsius\u2019s adversary proceeding and related claims against Tether,\u201d said David Proman, managing partner at GXD Labs.<\/p>\n

Tether and the Celsius collapse<\/h2>\n

The settlement ends one of the most contentious cases in crypto bankruptcy history. Celsius sued Tether in August 2024, claiming the stablecoin issuer improperly liquidated roughly<\/a> 39,500 Bitcoin used as collateral before Celsius filed for bankruptcy in July 2022.\u00a0<\/p>\n

Celsius said Tether<\/a> violated an agreement requiring a 10-hour notice before selling the assets, costing the lender any remaining equity in the position.<\/p>\n

Tether pushed back, calling the suit a \u201cbaseless shakedown.\u201d The company said it acted within the terms of a 2022 agreement requiring Celsius to post more collateral as Bitcoin prices fell.<\/p>\n

When Celsius failed to meet the margin call, Tether said it liquidated the bitcoin at Celsius\u2019s direction to cover an $815 million debt.<\/p>\n

A U.S. bankruptcy judge in New York allowed Celsius\u2019s case to move forward earlier this year, though Tether denied wrongdoing.<\/p>\n

The $299.5 million payment was arranged through BRIC, a joint recovery vehicle set up in early 2023 to pursue claims and recover assets from collapsed crypto firms.\u00a0<\/p>\n

BRIC was appointed by the Celsius debtors and creditors\u2019 committee in January 2024 to oversee asset recovery and litigation management, according to the BRIC release on the matter.<\/p>\n

While the payment represents a win for Celsius creditors, it\u2019s a modest one compared to the scale of losses from the company\u2019s collapse.<\/p>\n

Celsius, once one of the largest crypto lenders, froze withdrawals<\/a> in mid-2022 amid plunging token prices and failed investments. Its bankruptcy exposed billions in customer losses and alleged mismanagement by top executives.<\/p>\n

Former Celsius CEO Alex Mashinsky was sentenced in May to 12 years in prison for fraud and market manipulation. Prosecutors said he misused customer funds and inflated the price of the platform\u2019s CEL token. In June, Mashinsky agreed to forfeit any claims to assets from the bankruptcy estate.<\/p>\n

The Celsius collapse became one of the defining moments<\/a> of crypto\u2019s 2022 credit crisis, alongside failures at Voyager, BlockFi, and FTX.<\/p>\n

The fallout triggered a wave of litigation and recovery efforts that continue to reshape how courts treat crypto lending and collateral agreements.<\/p>\n

This post Tether Pays $300 Million to Settle $4.5 Billion Celsius Bankruptcy Claims<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Micah Zimmerman<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine Tether Pays $300 Million to Settle $4.5 Billion Celsius Bankruptcy Claims Stablecoin issuer Tether has agreed to pay $299.5 million to the Celsius Network bankruptcy estate, settling years of litigation tied to the crypto lender\u2019s 2022 collapse.\u00a0 The payment is far below the nearly $4.5 billion Celsius originally sought in bitcoin. The Blockchain […]<\/p>\n","protected":false},"author":0,"featured_media":5061,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-5060","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/5060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=5060"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/5060\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/5061"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=5060"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=5060"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=5060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}