USDT Stability Reinforced as Tether Resolves Celsius Bankruptcy Claims with $299.5 Million Settlement
In a landmark resolution that underscores the resilience of major stablecoin operators, Tether Holdings has reached a $299.5 million settlement agreement to conclude litigation stemming from the Celsius Network bankruptcy proceedings. The settlement, officially confirmed by Tether CEO Paolo Ardoino through social media channels on October 14, 2025, addresses adversary proceedings initially filed in August 2024 concerning collateral transfers and liquidation activities that occurred during Celsius's dramatic collapse in July 2022. This substantial financial resolution not only demonstrates Tether's commitment to maintaining operational stability and regulatory compliance but also represents a crucial step toward resolving one of the most significant legal challenges facing the cryptocurrency industry. The settlement amount, while substantial, represents a manageable financial commitment for the world's largest stablecoin issuer, whose USDT token continues to maintain its dollar peg and market dominance throughout these legal proceedings. Market analysts view this resolution as a positive development for the broader cryptocurrency ecosystem, as it removes significant legal uncertainty surrounding one of the industry's most critical infrastructure providers. The resolution comes at a time when regulatory scrutiny of stablecoin operations has intensified globally, making Tether's proactive settlement approach particularly noteworthy. This development reinforces the growing maturity of the digital asset sector and highlights the industry's capacity to navigate complex legal challenges while maintaining operational continuity and market confidence.
Tether Settles Celsius Bankruptcy Lawsuit for $299.5 Million
Tether, the issuer of the world's largest stablecoin USDT, has agreed to pay $299.5 million to settle litigation related to the Celsius Network bankruptcy. The payment resolves adversary proceedings filed in August 2024 concerning collateral transfers and liquidations that impacted Celsius during its July 2022 collapse.
Paolo Ardoino, Tether's CEO, confirmed the settlement via social media on October 14, 2025. The Blockchain Recovery Investment Consortium (BRIC), a joint venture between GXD Labs and VanEck, disclosed the resolution in a press release the same day.
The settlement marks another chapter in Celsius's bankruptcy saga, which began when the crypto lender froze withdrawals amid a $1.2 billion shortfall. BRIC, formed in early 2023, specializes in maximizing recoveries for crypto-related bankruptcies.
