Tether to pay $299,5 million as part of Celsius Network lawsuit settlement

Key points:

• Stablecoin issuer Tether has agreed to pay Celsius Network $299,5 million as part of a bankruptcy settlement.
• Celsius initially sought $4,3 billion, alleging that Tether illegally liquidated tens of thousands of bitcoins before the waiting period expired.
• The settlement ends a lengthy legal dispute that began in 2024 and removes mutual claims between the parties.

Stablecoin issuer Tether has agreed to pay $299,5 million in compensation for the bankruptcy of Celsius Network. The payment is related to a bankruptcy claim filed in August 2024, as well as claims related to the transfer of collateral and liquidation that affected Celsius in July 2022.

GXD Labs and VanEck managed the lawsuit against Tether through BRIC, a company created in early 2023 to maximize compensation in the event of crypto company bankruptcies.

Celsius’ claims

Celsius initially sought $4,3 billion in damages, claiming that Tether improperly liquidated 39 542 bitcoins in 2022 before the expiration of the 10-hour waiting period. The settlement agreement represents approximately 7% of the amount Celsius sought in court.

The lawsuit was filed in August 2024 in the US Bankruptcy Court for the Southern District of New York. In July 2025, Judge Martin Glenn allowed Celsius to proceed with most of its claims. Tether CEO Paolo Ardoino confirmed the settlement. He noted:

“Tether is pleased to have reached a settlement of all issues related to the Celsius bankruptcy.”

Source: x.com

Celsius filed for bankruptcy in July 2022 after discovering a $1,2 billion balance sheet deficit. In November 2023, the company emerged from bankruptcy and has since been managed by BRIC to return illiquid assets and assets related to litigation on behalf of creditors.

According to court documents, former CEO Alex Mashinsky was sentenced in May to 12 years in prison after pleading guilty to commodity market fraud and manipulating the price of Celsius’ own token, CEL. Prosecutors said Mashinsky “orchestrated one of the biggest frauds in the crypto industry.”

Tether had previously denied any wrongdoing, calling the lawsuit “baseless” and claiming that Celsius was seeking to “impose the costs of its own mismanagement” onto the stablecoin issuer.