Celsius Network has reached a $299.5 million settlement with Tether as part of its ongoing bankruptcy process, ending a year-long legal fight that originally sought $4.3 billion in damages.

The Celsius bankruptcy estate, managed by the Blockchain Recovery Investment Consortium (BRIC), confirmed the payment in a Tuesday announcement. 

The lawsuit, originally filed in August 2024 in a U.S. Bankruptcy Court, alleged that Tether had improperly liquidated 9,542 BTC that Celsius had pledged as collateral for loans denominated in USDT.

This story is an excerpt from the Unchained Daily newsletter.

Celsius claimed Tether violated a 10-hour notice period before liquidating the assets during a sharp bitcoin price decline in 2022 — actions Celsius argued accelerated its insolvency.

Tether denied wrongdoing, arguing that the liquidations were contractually justified as Celsius failed to meet margin calls.