TLDRCelsius has reached a settlement with Tether for $299.5 million in its bankruptcy case.The settlement resolves a lawsuit where Celsius initially sought $3.5 billion in damages.Tether was accused of liquidating Bitcoin collateral prematurely during Celsius’s bankruptcy proceedings.The Blockchain Recovery Investment Consortium announced the resolution of the case on October 14.The settlement covers all disputes related to Celsius’s bankruptcy, with no admission of wrongdoing from Tether.Celsius Network has settled with Tether, securing $299.5 million in a bankruptcy lawsuit. The settlement is part of a larger legal battle, where Celsius initially sought $3.5 billion in damages. This lawsuit stemmed from Celsius’s bankruptcy proceedings in 2022, following financial troubles that led to its Chapter 11 filing.Tether agreed to pay the settlement amount without admitting any wrongdoing. The Blockchain Recovery Investment Consortium (BRIC), which is overseeing Celsius’s bankruptcy recovery, announced the resolution on October 14. Despite Tether’s previous denials of the claims, the company has agreed to settle all disputes related to Celsius’s bankruptcy.Celsius Accuses Tether of Misappropriating AssetsIn August 2024, Celsius filed a lawsuit against Tether, claiming misappropriation of assets during its bankruptcy. The lawsuit focused on a collateral transfer of 39,542.42 BTC to Tether in exchange for a loan in USDT. Celsius argued that Tether liquidated the BTC collateral prematurely, thereby depriving it of the opportunity to provide additional collateral.Tether liquidated the Bitcoin collateral at a price that nearly matched the debt owed by Celsius. However, the company did not allow Celsius to deposit additional collateral, as per the lawsuit. Celsius sought to recover the value of its assets, along with damages and legal fees, totaling $3.5 billion.Despite Tether’s characterization of the lawsuit as “baseless,” both parties have now settled. Tether’s CEO Paolo Ardoino confirmed the agreement, noting that all issues regarding the Celsius bankruptcy have been resolved. BRIC’s Managing Partner David Proman expressed satisfaction with the timely resolution of the matter.Tether is pleased to have reached a settlement of all issues related to the Celsius bankruptcy.— Paolo Ardoino (@paoloardoino) October 14, 2025Tether Resolves Bankruptcy Case with SettlementThe settlement represents a fraction of Celsius’s original claim of $4.3 billion in the bankruptcy case. Celsius filed for Chapter 11 protection in July 2022, revealing a $1.2 billion shortfall in its balance sheet. In November 2023, Celsius emerged from bankruptcy under BRIC’s management, focused on recovering assets for its creditors.Following the settlement, BRIC will continue managing the recovery of illiquid assets from the Celsius estate. The bankruptcy proceedings included claims against various parties involved in Celsius’s operations and financial transactions. The Tether settlement is one of the major resolutions in the ongoing efforts to repay creditors.The bankruptcy case has been a high-profile example of the challenges in the crypto sector. With this settlement, Celsius is closer to finalizing its financial recovery after a turbulent period in the market. Tether, as the world’s leading stablecoin issuer, aims to move forward after resolving this dispute.The post Celsius Settles Bankruptcy Case with Tether for $299.5 Million appeared first on Blockonomi.