BRIC Strikes $299.5 Million Settlement With Tether in Celsius Showdown

The payment follows a lawsuit filed in August 2024 in the U.S. Bankruptcy Court for the Southern District of New York, which alleged claims related to collateral transfers and liquidations before Celsius filed for bankruptcy in July 2022.

GXD Labs Managing Partner David Proman stated that the consortium was “pleased to have resolved Celsius’s adversary proceeding and related claims against Tether.”

BRIC was appointed Complex Asset Recovery Manager and Litigation Administrator for the Celsius bankruptcy estate in January 2024. The consortium continues to manage illiquid and litigation assets for the estate’s wind-down to benefit creditors, marking a milestone in digital asset recovery.

Celsius Network, once a heavyweight in the crypto lending game, imploded in June 2022 after hitting the panic button on withdrawals amid a brutal liquidity crunch sparked by the market’s crash. The bankruptcy torched billions in customer funds, and CEO Alex Mashinsky later admitted guilt to fraud, earning himself a 12-year prison stay in 2025 for duping investors and playing puppet master with prices.

The fiasco exposed just how fragile centralized crypto lenders and even exchanges could be at the time, setting off a chain reaction of scrutiny and skepticism across the industry.

FAQ 💡

• What is BRIC? — A joint venture between GXD Labs and Vaneck focused on digital asset recovery.
• Why did Tether pay $299.5 million? — To settle claims connected to Celsius’s 2022 bankruptcy.
• When was the lawsuit filed? — August 2024 in the U.S. Bankruptcy Court for the Southern District of New York.
• What role does BRIC play in Celsius’s estate? — It manages asset recovery and litigation for the benefit of creditors.