Stablecoin issuer Tether has agreed to pay $ 299.5 million to the Celsius Network Bankruptcy Estate, resolving claims tied to the collapse of 2022 of the Crypto Lender and potential opening a new chapter in the StableCoin liability chapter.
Blockchain Recovery Investment Consortium (BRIC) – a joint adventure between asset manager Vaneck and GXD Labs, an affiliate of Atlas Grove Partners – announced The regulation on Tuesday. Recovery ended a long dispute with Bitcoin (Btc) Collateral Moving and Avoid Before Celsius’ high profile losses In July 2022.
BRIC was formed in early 2023 to help maximize the recovery of the lender from the bankruptcy-asset platforms. It was appointed manager of asset recovery and the Celsius Debtors ‘trial and the unsecured creditors’ committee in January 2024, after the company came out of protection of losses.
Celsius had previously judged Tether, saying Stablecoin’s improper issueUSDT). According to the complaint, Tether sold the collateral When the price of Bitcoin closely matches Celsius ‘debt, Celsius’ position effectively wiped his position and contributed to its disappointment.
The newly announced $ 299.5 million negotiations represent only a fraction of approximately $ 4 billion in claims Celsius demanded in court, following a placement of opponents filed in August 2024. In July 2025, the court approved losses of losses Wider lawsuit against Tether To continue, even remains unclear how this latest recovery will affect the proceedings.
Removal can signal a growing legal exposure for stablecoin providers when acting as counterparts in the disturbed crypto markets -a development that can be rehapened of how regulators and courts view the responsibilities of creatures such as tether in future in.
To this day, those who have given Tether have maintained that their role is transactional, facilitating the release and redemption of tokens rather than the responsibility of how those tokens are used in exchanges, lending or decentralized financial platforms.
Related: Blockfi Bankruptcy Administrator and DOJ adopted to delete the $ 35M lawsuit
Appears from one of the darkest chapters of Crypto
The Celsius network losses were part of a cascading series of crypto failures in 2022 that collapsed in the industry in a long bear market and eventually set the stage for the fall of the FTX in the latter part of that year.
The collapse was especially severe for former Celsius CEO Alex Mashinsky, who was in June not to claim any possessions From the company’s bankruptcy estate and eventually being punished for 12 years in prison in two counts of felony. Number Cointelegraph reportedMashinsky reported to prison in September.
Celsius is far from being alone. Major Crypto Lenders Blockfi and Digital journey Filed for losses protection in 2022, followed by the Genesis Global Capital next year.
According to a review by Chicago’s Federal Reserve Bank, customers retreated nearly $ 13 billion from crypto-asset platforms between May and November 2022, as confidence has evolved throughout the sector.
“High yield products are a major magnet for customers on some platforms,” says the Chicago Fed, citing interest rates that exceed 17% in some cases-a level that draws investors during the bull market but has proven that prices are unstable once prices have collapsed.
Related: Mashinsky’s 12-year sentence sets the tone of implementation during Trump
