Celsius Bankruptcy Recovery Yields Nearly $300 Million From Tether Settlement

The wind-down of defunct crypto lender Celsius has resulted in a major financial recovery, with nearly $300 million secured from Tether, according to a Tuesday announcement by the Blockchain Recovery Investment Consortium (BRIC) — a group formed by GXD Labs and VanEck. BRIC was created to maximize recoveries in complex digital asset bankruptcies, such as that of Celsius Network, which was among the most high-profile collapses during the 2022 crypto winter.

GXD Labs, a subsidiary of Atlas Grove Partners, and asset manager VanEck continue to manage a portfolio of illiquid and litigation-linked assets tied to Celsius. The consortium had previously sought to purchase Celsius’ remaining assets, though those were ultimately acquired by rival bidder Fahrenheit in 2023.

The $299.5 million settlement resolves Celsius’ claims against Tether in the U.S. Bankruptcy Court for the Southern District of New York, concluding a significant chapter in the lender’s long-running legal and financial turmoil. In July 2024, the same court had allowed Celsius to pursue most of its $4 billion claim against Tether, paving the way for this recovery.

Celsius’ downfall in mid-2022 triggered a domino effect across the cryptocurrency industry, wiping out billions in investor value and contributing to the prolonged bear market known as the crypto winter. The company officially exited bankruptcy in 2024, returning more than $3 billion to creditors.

While spokespersons for VanEck and GXD Labs have not commented on the potential gains from the settlement, the move underscores growing institutional interest in digital asset recovery and restructuring. The Celsius-Tether resolution marks a significant milestone in the ongoing cleanup of crypto’s most turbulent era, highlighting efforts to restore value and confidence in the sector.