Market NewsMarketsNews
👁 Reviewed by

Our Editorial Standards

CryptoTale ensures top-quality, reliable content through rigorous expert writing, detailed fact-checking, professional editing, and unique visuals, delivering accessible, valuable articles aligned with strict editorial standards and guidelines

Click for more details

Tether and Celsius Reach $299.5M Settlement in Legal Dispute

Photo of Arslan Tabish Arslan TabishOctober 15, 2025Last Updated: October 15, 2025
3 minutes read
Tether and Celsius Reach $299.5M Settlement in Legal Dispute
  • A $299.5M settlement ends Celsius’s long legal battle with Tether over Bitcoin liquidation.
  • $4.3B claim from Celsius ends with a $299.5M settlement, resolving a key bankruptcy issue.
  • Tether plans to raise $20B to expand globally and solidify its stablecoin market dominance.

Celsius Network has reached a $299.5 million settlement with Tether, bringing an end to a prolonged legal dispute. The case involved claims that Tether improperly liquidated over 39,000 BTC before the mandated 10-hour waiting period had passed in 2022. This settlement represents a major step forward in resolving one of the key issues from Celsius’s ongoing bankruptcy proceedings.

The deal was unveiled by the Blockchain Recovery Investment Consortium (BRIC), a venture between VanEck and GXD Labs. The settlement removes one of the largest remaining disputes in Celsius’s more than three-year-old bankruptcy case. Celsius had sought $4.3 billion in damages originally, but the settlement came out to just 7% of that number.

Celsius’s allegation was that Tether damaged Celsius when it liquidated BTC early. The adversary proceeding was also heard by the U.S. Bankruptcy Court for the Southern District of New York in August 2024, with Judge Martin Glenn in January 2020 allowing most claims of Celsius to go forward. This would set the stage for Tuesday’s settlement announcement.

Tether’s CEO, Paolo Ardoino, confirmed the resolution, stating, “Tether is pleased to have reached a settlement of all issues related to the Celsius bankruptcy.” This settlement brings closure to a complex legal matter, allowing Tether to move past the dispute. The company now shifts its focus to its next strategic phase.

Tether, meanwhile, hopes to raise the $20 billion as part of its future plans at a valuation of $500 billion. The funds would be used to expand operations around the world and solidify Tether’s lead in the stablecoin market. The market capitalization of Tether currently sits at $180.7 billion, making it the largest stablecoin by a wide margin ahead of second-waller Circle’s USDC.

Tether has had a healthy financial track record. The company posted earnings of $4.9 billion in Q2 2025, following first-half 2025 earnings totalling $5.7 billion. A majority of these profits are derived from interest income on US Treasury securities and interest-earning deposits, a sign that the company is founded on a solid footing.

Genius Act Strengthens Stablecoin Regulations Amid Celsius Fallout

The Genius Act, which President Trump signed into law in July 2025, added more restrictive measures on stablecoins. With competitors like Trump-supporting USD1 and Ripple’s RLUSD joining the market, 

Celsius, which filed for bankruptcy in July 2022 after falling $1.2 billion short, emerged from bankruptcy protection in November 2023. Subsequently, the Blockchain Recovery Investment Consortium (BRIC) took over asset recovery efforts on behalf of creditors. Earlier, a New York bankruptcy court had approved Celsius’s effort to bring a $4 billion claim against Tether, and the settlement of $299.5 million puts an end to this legal dispute.

Related: Tether Backs Rumble’s $1.17B Bid for AI Firm Northern Data

The aftermath of Celsius’s failure has been devastating. The founder, Alex Mashinsky, was sentenced to 12 years in jail in May 2025 for commodities fraud and the manipulation of Celsius. 

Tether has repeatedly denied all wrongdoing, calling Celsius’s lawsuit baseless. The company argued that the financial problems at Celsius were self-inflicted and that it was trying to shift its mismanagement onto someone else. The settlement ends the noose of litigation, which means Tether could now leave behind all this legal baggage and move on.

This resolution represents an important milestone for Celsius as we continue to advance our process through bankruptcy, and is a key development in cementing Tether’s status as a leading stablecoin provider. The deal enables a clearer path going forward for all involved.

Disclaimer: The information provided by CryptoTale is for educational and informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a professional before making any investment decisions. CryptoTale is not liable for any financial losses resulting from the use of the content.

Tags
Photo of Arslan Tabish Arslan TabishOctober 15, 2025Last Updated: October 15, 2025
3 minutes read

Related Articles

SBF claims his prosecution followed secret GOP donations made during the 2022 cycle. Bankman says the arrest blocked planned testimony on a crypto bill before Congress. Lawmakers highlighted missing SEC messages tied to his charges and arrest timing. FTX founder Sam Bankman-Fried claims his prosecution came from political pressure within the Biden administration, according to a message shared through his GETTR account on Wednesday. The statement, published by a friend with access to his account, alleges that federal action followed his undisclosed financial contributions to Republicans in 2022. The arrest came shortly before he was scheduled to testify before Congress on cryptocurrency legislation. Political Alignment and Donations Bankman-Fried said his political outlook differed in 2020, describing himself as center-left at the time. However, he noted that by 2022 he viewed himself as a centrist, citing frustration with how former SEC Chair Gary Gensler approached crypto regulation. He claimed that this change led him to donate tens of millions of dollars privately to Republican candidates ahead of the midterms. According to his account, those donations were not made publicly and were routed through channels intended to limit visibility. He asserted that the Biden administration's Department of Justice and the SEC moved against him within weeks of those contributions. In his view, the timing suggests that the enforcement was driven by political fallout rather than regulatory process. Arrest Timing and House Republican Claims Bankman-Fried alleges he was detained the night before he was expected to appear on Capitol Hill to provide testimony on a proposed crypto bill he supported. The bill had gained interest among lawmakers and industry figures tracking digital asset legislation. He asserted that his arrest took place only weeks before the pending vote. House Republicans referenced his testimony schedule at the time, arguing that the detention interfered with his appearance. They claimed the prosecution could have disrupted his ability to address members of Congress and present his perspective on digital asset oversight. Lawmakers then sought documents from the SEC regarding the internal discussions around the timing of his charges and arrest. He further stated that correspondence involving Gensler was requested by congressional offices but was later reported lost, according to his version of events. The allegation resurfaced debate around oversight, transparency, and regulatory communication with Congress. Related: Sam Bankman-Fried’s X Return Sparks Over 50% FTT Surge Broader Reaction and Related Narratives His statements also revive comparisons made previously between his case and other politically charged financial investigations. Bankman-Fried pointed to commentary from conservative figures who have framed his prosecution as an example of selective enforcement. In past remarks, he referenced cases involving critics of foreign regimes, including Miles Guo, to illustrate claims of political retaliation by authorities. Bloomberg and the Wall Street Journal have reported efforts by his family to explore possible leniency options after his conviction. Conservative activist Laura Loomer recently said that a push existed to secure a pardon from former President Donald Trump. She argued online that the move sought to recast Bankman-Fried as a political target despite his earlier financial backing of Democratic campaigns. Some questioned whether a coordinated lobbying effort exists, while others highlighted the lack of documentation supporting those claims. Mentions of an exploratory pardon effort appear in reporting from January, when sources told Bloomberg and the Journal that strategy discussions had taken place. Reports also noted that Bankman-Fried donated more than $40 million in the 2022 election cycle, most of it to Democratic candidates. However, prosecutors said some Republican-linked donations were made using customer funds, routed through so-called straw donors. Those transactions became part of the broader fraud case tied to the collapse of FTX and Alameda Research. Renewed Scrutiny Over Politics and Enforcement The resurfaced claims come as creditors continue to seek asset recoveries and regulators monitor crypto market fallout. Bankman-Fried’s message comes as his appeal is pending after receiving a 25-year prison sentence and $11 billion in forfeiture orders. His post does not provide documentation to support his accusations but attempts to reframe the events leading to his arrest. His message also notes continued friction between segments of the crypto sector and federal authorities over enforcement strategies and policy direction. Meanwhile, Bankman-Fried’s account outlines a timeline linking political donations, regulatory disputes and his arrest before scheduled testimony. His claims reference reactions from House Republicans, commentary by Laura Loomer and reports of lost communications at the SEC.

SBF Says Biden Officials Targeted Him After GOP Donations

October 15, 2025
Coinbase Expands Crypto Reach with New CoinDCX Investment

Coinbase Expands Crypto Reach with New CoinDCX Investment

October 15, 2025
NYC Launches First Office for Digital Assets and Blockchain

NYC Launches First Office for Digital Assets and Blockchain

October 15, 2025
Japan Moves to Ban Crypto Insider Trading Under New Rules

Japan Moves to Ban Crypto Insider Trading Under New Rules

October 15, 2025
Back to top button