Tether–Celsius settlement: Tether will pay $299.5 million to resolve Celsius’s claims, representing 7% of the $4.3 billion demand. The U.S. Bankruptcy Court for the Southern District of New York approved the settlement after a multi-year adversary proceeding involving BRIC, Judge Martin Glenn, and statements from both parties.
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Tether pays $299.5M — 7% of Celsius’s $4.3B claim
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Settlement ends a multi-year adversary proceeding in the U.S. Bankruptcy Court for the Southern District of New York
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Case handled by the Blockchain Recovery Investment Consortium (BRIC); key statements from David Proman (GXD Labs) and Paolo Ardoino (Tether)
Tether–Celsius settlement: Tether will pay $299.5M to settle claims. Court ruling details, expert reactions, and implications for creditors and markets.
Published: October 14, 2025 | Updated: October 14, 2025
Author/Organization: COINOTAG
What is the Tether–Celsius settlement?
The Tether–Celsius settlement is a court-approved resolution in which Tether will pay $299.5 million to resolve claims brought by Celsius Network, equal to 7% of the $4.3 billion that Celsius originally sought. The agreement concludes an adversary proceeding in the U.S. Bankruptcy Court for the Southern District of New York after contested hearings by Judge Martin Glenn.
How did the settlement come about and what did the court find?
The Blockchain Recovery Investment Consortium (BRIC), a joint effort between GXD Labs and VanEck, took an active role in the Celsius bankruptcy matter and filed the adversary proceeding in August 2024. The complaint alleged that Tether liquidated 39,542 Bitcoin within a period that breached a 10‑hour waiting policy during the 2022 market crash. Tether moved to dismiss; Judge Martin Glenn denied that motion, finding sufficient grounds for the court to adjudicate the dispute because the transactions, accounts, and systems involved had significant U.S. contacts. After negotiations and court proceedings, Tether agreed to a settlement of $299.5 million to resolve the claims.
How much did Tether pay and why is the percentage notable?
Tether’s payment of $299.5 million represents 7% of Celsius’s initial $4.3 billion demand. The percentage reflects the court-mediated settlement figure rather than a damages award at trial. The settlement closes the adversary proceeding and related claims in the bankruptcy estate, providing a defined recovery for creditors and reducing prolonged litigation risk for all parties.
Frequently Asked Questions
How will the $299.5 million settlement be distributed to Celsius creditors?
The settlement amount will be administered through the Chapter 11 claims process overseen by the bankruptcy court. Distribution priorities will follow the confirmed plan and claims procedures in the Celsius bankruptcy estate; exact recoveries depend on allowed claim classifications and administrative expenses approved by the court.
When did Tether reach the settlement with Celsius?
Tether and the Celsius estate reached the settlement after the adversary proceeding filed in August 2024 was allowed to proceed by Judge Martin Glenn. The settlement was announced and entered in the U.S. Bankruptcy Court for the Southern District of New York in October 2025.
Case timeline and authoritative references
Key milestones in the dispute (presented using primary documentation cited in court filings and public statements):
- June–July 2022: Celsius suspends withdrawals and files for Chapter 11 bankruptcy on July 13, 2022.
- Early 2024: The Blockchain Recovery Investment Consortium (BRIC) began handling recovery efforts for the Celsius estate.
- August 2024: BRIC filed the adversary proceeding against Tether alleging improper Bitcoin liquidations.
- 2024–2025: Motions to dismiss and procedural battles in the U.S. Bankruptcy Court for the Southern District of New York, with Judge Martin Glenn allowing the proceeding to continue.
- October 2025: Parties reached a settlement for $299.5 million; public statements issued by David Proman (GXD Labs) and Paolo Ardoino (Tether).
Authoritative sources referenced (plain text): U.S. Bankruptcy Court for the Southern District of New York; Judge Martin Glenn; Blockchain Recovery Investment Consortium (BRIC); GXD Labs; VanEck; statements by David Proman and Paolo Ardoino; public records on Celsius Chapter 11 filings.
Key Takeaways
- Definitive recovery: The $299.5M settlement provides a concrete recovery for the Celsius estate after years of litigation.
- Court oversight matters: Judge Martin Glenn’s decision to allow the case to proceed was pivotal in bringing parties to a negotiated resolution.
- Creditor clarity: Creditors now have a measurable pool for distributions; the exact impact will be determined through the bankruptcy plan and claims process.
Conclusion
The Tether–Celsius settlement closes a high-profile adversary proceeding in the U.S. Bankruptcy Court for the Southern District of New York, with Tether agreeing to pay $299.5 million—7% of the $4.3 billion claimed by Celsius. The settlement resolves disputed claims brought by BRIC on behalf of the Celsius estate, follows rulings by Judge Martin Glenn, and includes public remarks from David Proman of GXD Labs and Paolo Ardoino of Tether. Stakeholders should follow the Celsius bankruptcy’s claims and distribution process for final recovery details. For ongoing coverage and filings, consult official court records and COINOTAG updates.
