Tether Provides $300 Million Funding to Resolve Celsius Bankruptcy Dispute
In a significant development for the crypto industry, Tether has committed $300 million to resolve its bankruptcy dispute with Celsius, a major crypto lender that filed for bankruptcy in 2022. Celsius successfully exited bankruptcy in 2024, distributing more than $3 billion to its creditors, marking one of the largest recoveries in crypto bankruptcy history.
Earlier in July 2025, the court approved Celsius's pursuit of a $4 billion claim against Tether, highlighting the complexity of the case. To maximize recoveries from such intricate digital asset bankruptcies, GXD Labs and VanEck formed the Blockchain Recovery Investment Consortium (BRIC). This consortium has been instrumental in negotiating the settlement and ensuring that stakeholders receive fair resolutions.
The agreement has received approval from the U.S. Bankruptcy Court for the Southern District of New York, finalizing this critical recovery step. The collaboration among these entities illustrates advancing maturity in handling crypto bankruptcy cases.
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