Celsius Network has resolved a long-standing lawsuit with Tether for $299.5 million, ending a long and bitter fight. The lawsuit was focused on accusations that Tether unlawfully sold more than 39,000 BTC without waiting for a 10-hour period at some point in the year 2022.
Celsius Tether Settlement Brokered by BRIC
The settlement, which was put forward by the Blockchain Recovery Investment Consortium (BRIC), marked a major victory for both Celsius and Tether. BRIC, a joint endeavor of VanEck and GXD Labs, facilitated the transaction.
Celsius had originally asked for $4.3 billion in damages, but the settlement equals just 7% of that amount. Celsius stated Tether’s early liquidation of BTC resulted in “significant financial loss”. This litigation was related to the bankruptcy that Celsius commenced in 2022.
The case was adjudicated by the U.S. Bankruptcy Court for the Southern District of New York in 2024. Many of Celsius’s claims could proceed, Judge Martin Glenn had ruled, paving the way for the Celsius Tether settlement.
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Paolo Ardoino, Scherer’s counterpart at Tether, said that Tether was pleased to resolve all issues related to the Celsius bankruptcy. This settlement brings closure to a complicated legal matter, allowing Tether to shift focus to its future plans.
Overview of the Legal Dispute
Bankruptcy Celsius had declared bankruptcy in July 2022 due to a massive cash gap. Celsius contended that Tether’s actions had made its financial woes worse and was seeking $4.3 billion in damages.
This Celsius Tether settlement eliminates one of the most significant remaining hurdles in Celsius’s bankruptcy case. It is an early turning point in the saga, which had left creditors and other stakeholders agonizing for months.
Tether’s Response and Strategic Focus
As of today, Tether’s market cap is $180.71 billion, dwarfing all other stablecoins. The business has never run deficits, and it is in good financial health, generating $4.9 billion revenue in Q2 2025 – mainly from interest income on US Treasury securities and interest-earning deposits.
With Celsius Tether settlement out of the way, Tether is now looking to expand. The company plans to raise $20 billion and reach a valuation of $500 billion. The new capital will go toward increasing its foothold in the stablecoin market and growing its international operations.
Impact on Celsius’s Bankruptcy Process
For Celsius, the settlement represents a critical stride in getting through its bankruptcy and resolving it. The company emerged from bankruptcy protection in November, but it still faced several unaddressed legal questions.
Despite the Celsius Tether settlement, fallout from Celsius’s collapse continues to reverberate at the company. Celsius’s founder, Alex Mashinsky, was convicted in May 2025 on charges of commodities fraud and market manipulation and sentenced to 12 years in prison.
Tether’s Financial Stability
Tether’s financial performance remains robust. The company has been consistently profitable, with 5.7 billion in earnings for the first half of 2025. Tether earns a good chunk of change from its US Treasury security holdings.
Strong finances and Tether’s dominance in the stablecoin market mean it can weather legal challenges such as the Celsius dispute. The case resolution enables Tether to focus on its expansion while at the same time bringing about certainty to parties involved in the litigation.
Regulatory Landscape and Future Outlook
New regulations from the U.S. government tighten restrictions on stablecoins. The Genius Act, signed in 2025, imposes additional regulations on stablecoin activity.
In the face of these headwinds, Tether’s leadership is confident in its ability to continue dominating the stablecoin market. The company furthermore had been able to resolve major legal battles of the apt, showcasing a rebound and its knack of overcoming regulatory hurdles..
Conclusion
The settlement of the Celsius Tether case is a significant event in the resolution of Celsius’s bankruptcy. For Tether, the Celsius Tether settlement removes a major legal threat and will allow it to concentrate on growing its market share.
For Celsius, it clears a path for an end to its bankruptcy and the return of any remaining assets to creditors. This agreement concludes a lengthy and complicated legal battle, creating a way forward for both companies.
Also Read: Tether in Talks With South Korea’s Biggest Banks Over KRW-Pegged Stablecoin
Summary
Celsius Network reached a $299.5 million settlement with Tether, resolving a legal dispute over the premature liquidation of 39,000 BTC. Initially seeking $4.3 billion, Celsius reduced its claim to just 7% of that amount.
The agreement would remove one of the largest remaining obstacles in Celsius’s continuing bankruptcy case. Paolo Ardoino further evidenced the resolution that teams up the Firm to maintain its concentration on innovation and growth.
Appendix: Glossary of Key Terms
Celsius Tether Settlement: Terms on agreement to cease and desist Celsius Networks’ claim against Tether for early BTC liquidation.
BRIC: Blockchain Recovery Investment Consortium, a partnership between VanEck and GXD that was instrumental in facilitating the settlement.
Celsius Bankruptcy Proceedings: The legal procedure that was initiated in order to recover Celsius assets after its liquidation in 2022.
Tether (USDT): The world’s largest stablecoin, and popular among those borrowing money to buy cryptocurrencies.
U.S. Bankruptcy Court: The court supervising Celsius’ bankruptcy case
Frequently Asked Questions About Celsius Tether settlement
1: What is the Celsius Tether settlement?
The Celsius Tether settlement resolves a legal dispute where Celsius accused Tether of prematurely liquidating BTC, leading to financial damage. The settlement is for $299.5 million.
2: How much did Celsius originally seek in damages?
Celsius initially sought $4.3 billion in damages but agreed to a settlement of $299.5 million, approximately 7% of the original claim.
3: How does this settlement impact Celsius’s bankruptcy?
The settlement removes a major legal hurdle for Celsius, allowing the company to focus on asset recovery and moving forward with bankruptcy proceedings.
4: What is Tether’s next focus after the settlement?
Tether plans to focus on expanding its operations globally and maintaining its lead in the stablecoin market, with ambitions to raise $20 billion for growth.
