"The payment is far below the nearly $4.5 billion Celsius originally sought in bitcoin."
"We are pleased to have resolved Celsius's adversary proceeding and related claims against Tether," said David Proman, managing partner at GXD Labs."
"Celsius sued Tether in August 2024, claiming the stablecoin issuer improperly liquidated roughly 39,500 Bitcoin used as collateral before Celsius filed for bankruptcy in July 2022."
"Tether pushed back, calling the suit a "baseless shakedown." The company said it acted within the terms of a 2022 agreement requiring Celsius to post more collateral as Bitcoin prices fell."
Tether agreed to pay $299.5 million to the Celsius Network bankruptcy estate to resolve litigation tied to Celsius's 2022 collapse. The payment is far below the nearly $4.5 billion Celsius originally sought in bitcoin. Celsius alleged Tether improperly liquidated roughly 39,500 Bitcoin used as collateral without a required 10-hour notice. Tether said it acted under a 2022 agreement that required Celsius to post more collateral and that it liquidated bitcoin at Celsius's direction to cover an $815 million debt after a missed margin call. The payment was arranged through BRIC, a recovery vehicle appointed to oversee asset recovery and litigation.
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