- Celsius settled with Tether for $299.5 million, closing a $4.3 billion dispute.
- The deal removes a major overhang and lets BRIC focus on distributions.
- Judge approvals and prior rulings set the path; creditors watch next steps.
Celsius secured a $299.5 million settlement from Tether, ending a $4.3 billion courtroom fight tied to the lender’s 2022 collapse.
The agreement closes one of the estate’s largest contested claims and reduces uncertainty around remaining recoveries. For creditors, the outcome clarifies the pool of assets available for distribution and allows the estate’s managers to shift from litigation to execution.
The settlement was announced by the Blockchain Recovery Investment Consortium (BRIC), a venture formed by VanEck and GXD Labs to manage Celsius’s post-bankruptcy recovery. The deal closes a critical chapter in the estate’s efforts to retrieve value from contested assets and litigation claims on behalf of creditors.
How we got here
Celsius alleged that Tether liquidated 39,542 BTC during a 2022 margin call before a 10-hour contractual waiting period had expired. The company filed suit in August 2024 in the U.S. Bankruptcy Court for the Southern District of New York.
In July 2025, Judge Martin Glenn allowed most of Celsius’s claims to proceed, which set up settlement talks. The $299.5 million figure represents about 7% of the original demand, but it brings finality to a high-stakes dispute that had slowed the estate’s wind-down.
Related: Ex-Celsius Employee Shares Implicating Document About Former CEO
Celsius had initially pursued $4.3 billion in damages, accusing Tether of liquidating 39,542 bitcoins prematurely during a margin call in 2022. The stablecoin issuer allegedly executed the sale before a 10-hour contractual waiting period had expired. The final settlement represents about 7% of Celsius’s original demand but effectively ends one of the estate’s last major disputes.
Related: Celsius Lawyers, Advisors Want $52 Million for 4 Months’ Work
Tether CEO Confirms Resolution
Tether CEO Paolo Ardoino confirmed the settlement, describing it as a resolution of all outstanding matters related to the Celsius bankruptcy. He emphasized that the company welcomed the conclusion of the dispute, signaling a desire to move forward. The stablecoin issuer had consistently rejected Celsius’s accusations, stating that the case was without merit and that Celsius was attempting to shift blame for its own mismanagement.
Context for Creditors
Celsius filed for bankruptcy protection in July 2022 after disclosing a $1.2 billion deficit on its balance sheet. The platform, which once managed billions in crypto assets, restructured under court supervision and emerged from bankruptcy in November 2023. Since then, BRIC has overseen the recovery of illiquid and litigation-linked assets to maximize creditor returns.
The legal closure with Tether follows other major resolutions and marks a turning point for the estate’s efforts to finalize claims. Former CEO Alex Mashinsky was sentenced to 12 years in prison in May for commodities fraud and price manipulation of Celsius’s native CEL token.
What to watch next
Creditors will watch for a distribution schedule, final claim reconciliations, and any notices from the court on remaining administrative steps. Market participants will look for how much of the $299.5 million converts into near-term liquidity for the estate and whether additional resolutions accelerate the final wind-down.
The key measure from here is progress against a dated, public timetable that moves recovered value from the estate to claim holders.
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