tether Settles Celsius Bankruptcy Lawsuit for $299.5 Million
Tether has agreed to pay $299.5 million to settle a lawsuit related to the Celsius Network bankruptcy. The stablecoin issuer,known for its USDT token,confirmed the settlement on October 14,2025.
The lawsuit was filed in August 2024 by the Blockchain Recovery Investment Consortium (BRIC), a joint venture between GXD Labs and VanEck. BRIC manages litigation for crypto-related bankruptcies like Celsius. tether’s CEO, Paolo Ardoino, announced the settlement on X.
Celsius filed for Chapter 11 bankruptcy in july 2022 after pausing withdrawals and revealing a $1.2 billion deficit. The company emerged from bankruptcy in early 2024 with a court-approved restructuring plan.
The settlement resolves adversary proceedings and claims about collateral transfers and liquidations that Celsius faced in July 2022. BRIC sought 39,342 Bitcoin from Tether. A bankruptcy judge allowed the case to proceed in July 2025, rejecting Tether’s dismissal request.
David Proman, managing partner of GXD Labs, expressed satisfaction with the timely resolution. “We are pleased to have resolved Celsius’s adversary proceeding and related claims against Tether,” he said.
Tether’s USDT is the world’s largest U.S. dollar-pegged stablecoin, with over $180 billion in market capitalization. The lawsuit was filed in the United States bankruptcy Court for the Southern District of New York.
Celsius’s collapse was part of a broader crypto market downturn in 2022, which also affected BlockFi, Voyager Digital, and FTX.
