Tether Resolves Celsius Lawsuit With $300 Million Settlement
The Blockchain Recovery Investment Consortium (BRIC), a collaboration between GXD Labs and VanEck, announced a development in the Celsius bankruptcy case. Tether (USDT) agreed to a settlement with Celsius' bankruptcy estate after an adversary proceeding initiated last year.
Key Points on the Tether Settlement
- Celsius, which filed for bankruptcy in July 2022, accused Tether of mishandling collateral and liquidations, involving 39,542 BTC (valued at $4.3 billion at the time) and an additional $100 million in damages.
- Tether described the lawsuit as a "shake down," stating Celsius was responsible for providing more collateral due to Bitcoin's price fluctuations.
- The settlement enables Tether to resolve the dispute for nearly $300 million, providing a significant return for Celsius bankruptcy creditors.
Tether CEO Paolo Ardoino expressed satisfaction with the settlement resolution on social media. David Proman from GXD Labs also noted the pleasure in resolving the adversary proceeding and related claims against Tether.
