A significant chapter in the ongoing saga of Celsius Network closed recently, bringing a nearly $300 million settlement from stablecoin issuer Tether. This agreement, announced by the Blockchain Recovery Investment Consortium (BRIC), marks a resolution in one of the larger disputes stemming from Celsius’s long bankruptcy process.
- Celsius Network has reached a settlement with stablecoin issuer Tether for nearly $300 million, resolving a major dispute from its bankruptcy proceedings.
- This settlement is a fraction of Celsius’s initial $4.3 billion claim, highlighting the often-reduced outcomes of legal battles in the crypto space.
- The resolution brings some closure and funds to creditors after years of legal wrangling and market volatility following Celsius’s bankruptcy in 2022.
For those of us watching the crypto space, it felt like a moment to pause. Celsius, you might recall, had originally sought a staggering $4.3 billion in damages. They alleged that Tether had improperly liquidated 39,542 bitcoins back in 2022. This happened before a required 10-hour waiting period had even expired.
The $299.5 million settlement, while a substantial sum, represents only about 7% of what Celsius initially pursued in court. It’s a reminder that legal battles in the digital asset world often end with figures far removed from initial claims.
The Long Road to a Partial Settlement
The legal action began in August 2024. It was filed in the U.S. Bankruptcy Court for the Southern District of New York. Judge Martin Glenn played a key role, allowing Celsius to proceed with most of its claims in July 2025. This decision paved the way for the recent deal.
Tether, for its part, had consistently denied any wrongdoing. Its CEO, Paolo Ardoino, confirmed the settlement in a post on X, stating, “Tether is pleased to have reached a settlement of all issues related to the Celsius bankruptcy.”
You can almost hear the collective sigh of relief from Tether’s side. They had previously labeled the lawsuit “baseless.” They argued that Celsius was trying to shift the costs of its own mismanagement onto the stablecoin issuer.
This kind of back-and-forth is common in high-stakes financial disputes. Each party, naturally, presents its case with conviction. The court, in the end, helps find a middle ground, or at least a path to resolution.
BRIC, a joint venture between VanEck and GXD Labs, has been managing Celsius’s estate since it emerged from bankruptcy. Their mission is to recover illiquid and litigation-linked assets for creditors. This settlement is a notable win in that effort.
A Glimpse into Celsius’s Troubled Past
Celsius’s journey has been a turbulent one. The firm filed for bankruptcy in July 2022. This came after it revealed a $1.2 billion balance-sheet shortfall. It was a stark moment for many in the industry, highlighting the risks inherent in some lending models.
The company finally emerged from bankruptcy protection in November 2023. But the fallout continued. Its former CEO, Alex Mashinsky, faced serious legal consequences.
Mashinsky was sentenced in May to 12 years in prison. He had pleaded guilty to commodities fraud and a scheme to manipulate the price of Celsius’s native token, CEL. Prosecutors did not mince words, calling it “one of the biggest frauds in the crypto industry.”
It makes you wonder, doesn’t it, about the human element in these large-scale financial collapses? The technical details of liquidation and collateral are one thing. The stories of alleged fraud and mismanagement are quite another.
This settlement with Tether closes one more chapter in Celsius’s long, winding story. It brings a measure of clarity, and some funds, to creditors who have waited patiently through years of legal wrangling and market upheaval.
What This Means for the Crypto Landscape
The resolution of such a significant claim, even at a fraction of its original size, sends a signal. It shows that even in the complex world of crypto bankruptcy, legal processes can eventually yield results. It might not be the full recovery everyone hoped for, but it is a recovery.
For stablecoin issuers like Tether, it underscores the importance of clear, transparent liquidation procedures. The allegations centered on a specific waiting period. This highlights how crucial adherence to agreed-upon terms can be, especially when billions are on the line.
The involvement of entities like BRIC also points to a maturing industry. There are now specialized groups dedicated to untangling the financial knots left by failed crypto ventures. This is a far cry from the earlier, wilder days of digital assets.
Creditors, who often feel like they are at the mercy of lengthy legal battles, can take some solace in this outcome. While not a full victory, it is a step forward. It means that some assets, previously tied up in litigation, are now free to be distributed.
The ripple effects of the 2022 crypto downturn continue to play out. Each settlement, each court decision, slowly helps to define the boundaries and responsibilities within this still-young financial ecosystem. It’s a slow process, but it is progress.