Tether settles Celsius claims for $300M, raising stablecoin liability concerns

Tether’s $299.5 million Celsius settlement could ignite a debate over stablecoin accountability and the legal risks facing issuers in future crypto bankruptcies.

Stablecoin issuer Tether has agreed to pay $299.5 million to the Celsius Network bankruptcy estate, resolving claims tied to the crypto lender’s 2022 collapse and potentially opening a new chapter in the debate over stablecoin liability.

The Blockchain Recovery Investment Consortium (BRIC) — a joint venture between asset manager VanEck and GXD Labs, an affiliate of Atlas Grove Partners — announced the settlement on Tuesday. The recovery concludes a years-long dispute over Bitcoin (BTC) collateral transfers and liquidations that preceded Celsius’s high-profile bankruptcy in July 2022.

BRIC was formed in early 2023 to help maximize creditor recoveries from bankrupt digital-asset platforms. It was appointed asset recovery manager and litigation administrator by the Celsius Debtors and the Unsecured Creditors’ Committee in January 2024, after the company exited bankruptcy protection.

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