Tether Strikes $299.5M Deal with Celsius Bankruptcy Estate

This agreement closes a legal dispute over loan collateral liquidations that took place before Celsius filed for bankruptcy in July 2022.

The Blockchain Recovery Investment Consortium (BRIC), formed by VanEck and GXD Labs, shared the news on October 14.

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In January 2024, after Celsius exited bankruptcy protection, BRIC was appointed by the Celsius Debtors and the Unsecured Creditors’ Committee to oversee asset recovery and legal matters.

The lawsuit centered around claims that Tether improperly sold Bitcoin

BTC


$111,466.90



that Celsius had used to secure USDT-denominated loans. Celsius argued that these sales happened when Bitcoin prices closely matched the loan amounts.

The court filing was made in August 2024 in the US Bankruptcy Court for the Southern District of New York.

Although Celsius had sought around $4 billion through the legal process, the settlement only covers a portion of that amount. A broader case against Tether was allowed to continue in July 2025, though it is unclear how this payout will impact those ongoing proceedings.

According to BRIC representatives, including David Proman of GXD Labs, the team was satisfied with the outcome and the speed at which the agreement was reached. BRIC continues to handle the remaining Celsius assets, many of which are illiquid, and is working to return value to creditors.

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