A consortium formed by GXD Labs and VanEck has recovered nearly US$300 million from Tether in connection with the wind-down of Celsius, the bankrupt cryptocurrency lender.
The Blockchain Recovery Investment Consortium (BRIC), created by GXD Labs and VanEck, manages digital asset bankruptcy cases such as Celsius.
The US$299.5 million recovery resolves a major claim Celsius had pursued against Tether in the US Bankruptcy Court for the Southern District of New York.
Celsius collapsed in 2022 and exited bankruptcy last year after distributing over US$3 billion to creditors, while BRIC continues to manage other illiquid and litigation assets tied to the case.
🔗 Source: CoinDesk
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Implications, context, and why it matters.
Settlement resolves Celsius adversary proceeding (a lawsuit within the bankruptcy case) against Tether
- A $299.5 million payment ends Celsius claims over Bitcoin (BTC) collateral liquidations after Tether sold 39,542 BTC, worth nearly $4.5 billion, before Celsius filed for bankruptcy in 2022 1.
- Tether says it followed a 2022 deal after Celsius missed margin on an $815 million debt. Celsius says Tether skipped the contractually required 10-hour window to post more collateral 1.
- The sum equals about 6.7% of the 39,542 BTC’s current value after a June 30, 2025 order partly granted, then partly denied, the defendants’ motion to dismiss 2.
- This ends a Celsius dispute. AMBCrypto says Tether still faces exposure in other crypto bankruptcies, including Three Arrows Capital and FTX 3.
Specialized claim recovery and claims trading in crypto bankruptcies
- The Blockchain Recovery Investment Consortium (BRIC) became Complex Asset Recovery Manager in January 2024, a role covering illiquid and litigation assets 4. The role covers illiquid plus litigation assets and lets recovery firms pull value from hard-to-sell estates. CoinGecko says Celsius claims traded at about 35-40% of face value, while FTX claims reached up to 57% 5.
- Distressed debt investors, plus hedge funds, now use marketplaces like Claims Market and Open Exchange to trade bankruptcy claims with clear pricing 65. This setup supports arbitrage between purchase discounts and eventual recoveries.
- Some bankruptcy creditors choose quick cash by selling claims at a discount. Celsius exited Chapter 11 (the U.S. corporate reorganization process) on January 31, 2024 and began distributions on February 1, 2024 7.
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