Tether has reached a $299.5 million settlement with Celsius Network, resolving a legal dispute centered on the liquidation of approximately 40,000 Bitcoin (BTC) used as collateral prior to Celsius's bankruptcy filing in July 2022. The agreement, finalized in October 2025, addresses allegations that Tether prematurely liquidated 39,542 BTC without adhering to a required 10-hour waiting period, which Celsius claimed contributed to its financial troubles and initially sought $4.3 billion in damages.
The settlement represents only about 7% of the original claim, highlighting the contentious nature of the case where Tether denied any wrongdoing, calling the lawsuit "baseless." Paolo Ardoino, Tether's CEO, stated the company is "pleased to have reached a settlement of all issues related to the Celsius bankruptcy," emphasizing a move toward financial stability. This resolution concludes one of the key legal battles in Celsius's bankruptcy proceedings, which have been managed by the Blockchain Recovery Investment Consortium (BRIC) since the firm's collapse, involving a $1.2 billion shortfall.
Historically, this case mirrors similar disputes in the crypto industry, such as those involving FTX, and is expected to set precedents for handling digital assets in bankruptcy contexts. The settlement may influence future legal frameworks by reinforcing standards for crypto collateral management and creditor recovery strategies, though it underscores ongoing challenges in the regulatory landscape.
