Tether has paid $299.5 million to the Celsius Network bankruptcy estate, resolving a legal dispute that stemmed from the cryptocurrency lender’s collapse in 2022. The settlement was announced Monday by the Blockchain Recovery Investment Consortium (BRIC), a joint venture between GXD Labs and VanEck.
The payment follows an adversary proceeding filed in August 2024 in the U.S. Bankruptcy Court for the Southern District of New York, where the Celsius estate sought claims under the bankruptcy code related to collateral transfers and liquidations prior to its Chapter 11 filing.
David Proman, managing partner at GXD Labs and affiliate of Atlas Grove Partners, confirmed the settlement, noting that the resolution concludes Celsius’s claims against Tether. Terms beyond the payment amount were not disclosed.
BRIC’s Role in the Celsius Bankruptcy
Formed in early 2023, the BRIC was created to recover value from distressed or complex digital asset bankruptcies, including Celsius. The consortium was appointed as Complex Asset Recovery Manager and Litigation Administrator by Celsius debtors and the Unsecured Creditors’ Committee in January 2024, following the company’s emergence from bankruptcy protection.
Under its mandate, the BRIC manages a mix of illiquid assets and litigation portfolios tied to the Celsius estate. Its goal is to recover value for creditors during the estate’s wind-down phase, which continues to address residual legal and financial claims.
The BRIC is led by R. Christian Wyatt and David Proman from GXD Labs, alongside Pranav Kanade and Matthew Babinsky from VanEck. The group brings experience in digital asset recovery, litigation management, and restructuring.
Legal Counsel and Broader Context
The litigation was handled with legal representation from Quinn Emanuel Urquhart & Sullivan LLP, whose bankruptcy and restructuring co-head Benjamin I. Finestone advised the BRIC throughout the proceedings.
Celsius filed for Chapter 11 bankruptcy in July 2022, one of several major crypto lenders to collapse during that year’s market downturn. The resolution of the Tether dispute marks another step toward finalizing creditor recoveries and concluding the Celsius wind-down process.
The BRIC continues to oversee remaining legal and financial matters for the Celsius estate as the broader crypto industry navigates ongoing restructuring and recovery efforts.
