Tether has agreed to a $299.5 million settlement with Celsius Network’s bankruptcy estate, potentially setting a precedent for stablecoin issuer liability. The resolution addresses claims stemming from the crypto lender’s dramatic 2022 collapse and collateral disputes. This landmark settlement could reshape how stablecoin providers navigate future crypto bankruptcies.
about Tether Pays $299.5M in Celsius Settlement, Testing Stablecoin LiabilityCelsius Network
0 posts last weekTether Settles Celsius Bankruptcy Claims for $299.5M
Stablecoin giant Tether has resolved its legal battle with the Celsius Network bankruptcy estate through a $299.5 million settlement, representing just 6.7% of the nearly $4.5 billion in Bitcoin originally sought by the failed crypto lender. The agreement concludes an adversary proceeding filed in August 2024 that alleged Tether improperly liquidated Bitcoin collateral before Celsius’s July 2022 bankruptcy. This resolution comes alongside the 12-year prison sentence handed to former Celsius CEO Alex Mashinsky for fraud and token manipulation, marking a significant chapter in the ongoing cleanup of one of crypto’s most spectacular collapses.
about Tether Settles Celsius Bankruptcy Claims for $299.5MDeFi Protocol CrediX Hacked: $4.5M Stolen, Recovery Promised
CrediX, a DeFi protocol, was hacked for $4.5 million in crypto, with the attacker exploiting an administrative account to mint unbacked stablecoins and drain collateral. Blockchain security firms CertiK and Peckshield confirmed the breach, noting the funds were moved from Sonic to Ethereum. CrediX assured users of full recovery within 48 hours, though its website remained offline. The attacker had gained privileged access six days prior, raising questions about platform security. CrediX, which offers high-yield lending (up to 10,000% APY), had recently rebranded from Fantom. Meanwhile, Sonic’s native token saw a minor price bump despite broader declines. The incident highlights ongoing risks in DeFi, echoing past warnings from regulators like Gary Gensler.
about DeFi Protocol CrediX Hacked: $4.5M Stolen, Recovery PromisedBitcoin Savings vs. Banks: Best High-Yield Options
As DeFi and FinTech disrupt traditional finance, Bitcoin savings accounts emerge as a high-yield alternative to bank deposits, offering 4-8% higher interest rates. However, they lack federal insurance (e.g., FDIC), relying instead on private safeguards like Ledger Vault. Key comparisons include fund access (both lend assets), withdrawals (crypto often has fewer limits), and compounding interest. Top platforms like YouHodler (4.8% on BTC) and BlockFi (USD payouts) combine robust security (3FA, $150M insurance) with user-friendly features. While banks provide stability, crypto accounts excel in returns and flexibility, though risks like hacking remain for weaker platforms.
about Bitcoin Savings vs. Banks: Best High-Yield OptionsJudge Allows Celsius’ $4.3B Lawsuit Against Tether to Proceed
A U.S. bankruptcy judge has ruled that Celsius Network’s $4.3 billion lawsuit against Tether can proceed, focusing on claims that the stablecoin issuer improperly sold nearly 40,000 BTC in June 2022. Celsius alleges Tether breached agreements by conducting a ‘fire sale’ of collateral without proper notice, resulting in over $4 billion in losses. Judge Martin Glenn dismissed some claims, including jurisdictional issues and allegations under British Virgin Islands law, but upheld others, such as potential breaches of collateral agreements. Tether has called the lawsuit ‘baseless,’ arguing Celsius authorized the sale. The case highlights the legal complexities of crypto collateral disputes and bankruptcy proceedings.
about Judge Allows Celsius' $4.3B Lawsuit Against Tether to ProceedCelsius Wins Key Ruling in $4B Bitcoin Lawsuit Against Tether
A US Bankruptcy Court has allowed Celsius Network to advance its lawsuit against Tether, targeting over 57,000 BTC (valued at $4B+) allegedly seized or liquidated improperly before Celsius’s 2022 collapse. The court greenlit claims for preferential transfers, fraudulent transfers, and breach of contract, while dismissing some secondary claims. Celsius argues Tether unfairly liquidated collateral—including 39,542 BTC sold without a 10-hour notice period—and retained excess collateral, disadvantaging other creditors. Though jurisdictional and BVI law claims were dismissed, the ruling sets the stage for a landmark crypto asset recovery case. The outcome could reshape creditor rights in crypto bankruptcies.
about Celsius Wins Key Ruling in $4B Bitcoin Lawsuit Against TetherJudge Allows Celsius Lawsuit Over Tether’s $4B BTC Sale
A US bankruptcy judge has allowed Celsius Network’s multibillion-dollar lawsuit against Tether to move forward, rejecting parts of Tether’s dismissal request. Celsius alleges Tether conducted a ‘fire sale’ of over 39,500 BTC in June 2022, using proceeds to cover Celsius’s $812 million debt without following agreed procedures. The lawsuit claims Tether breached their lending agreement, violated ‘good faith and fair dealing’ under British Virgin Islands law, and engaged in fraudulent transfers under US bankruptcy law. The ruling marks a significant step in Celsius’s legal battle amid its ongoing bankruptcy proceedings.
about Judge Allows Celsius Lawsuit Over Tether's $4B BTC SaleEx-Celsius CEO Gets 12 Years for $48M Crypto Fraud
Alex Mashinsky, the ex-CEO of bankrupt crypto lender Celsius Network, received a 12-year prison sentence for defrauding investors through false claims about the company’s stability and manipulating CEL token prices. Prosecutors revealed he pocketed $48 million while misleading retail investors, with federal authorities initially seeking a 20-year term. The case, tied to Celsius’s $4.7 billion FTC settlement, also saw the firm’s former revenue chief cooperate, exposing systemic fraud. Mashinsky forfeited ill-gotten gains and waived appeal rights under his plea deal, closing a high-profile prosecution that underscores regulatory scrutiny of crypto misconduct.
about Ex-Celsius CEO Gets 12 Years for $48M Crypto FraudCelsius Founder Gets 12 Years for Fraud, $7B Loss
Former Celsius CEO Alex Mashinsky received a 12-year prison sentence for orchestrating a massive fraud that led to $7B in investor losses. Prosecutors proved Mashinsky lied about Celsius’ financial health while funneling customer funds into high-risk bets, culminating in the platform’s 2022 bankruptcy. Victims testified about life-altering losses, with some dying before restitution. Though Celsius has repaid $127M to creditors, most face steep haircuts. The case sets a precedent for crypto accountability as Mashinsky faces additional civil suits, while speculation swirls about a potential Trump-era pardon following similar clemency for BitMEX founders.
about Celsius Founder Gets 12 Years for Fraud, $7B LossEx-Celsius CEO Gets 12 Years for Fraud, Token Manipulation
Alex Mashinsky, the former CEO of Celsius Network, was sentenced to 12 years in prison on Thursday for commodities and securities fraud related to misusing customer funds and manipulating the CEL token’s price. Mashinsky had pleaded guilty to two charges in December 2024, though he initially faced seven counts. Prosecutors had recommended a 20-year sentence, while his defense argued for just over a year. Celsius collapsed in 2022 after freezing withdrawals, leaving customers with over $5 billion in losses. Creditor repayments are still ongoing.
about Ex-Celsius CEO Gets 12 Years for Fraud, Token ManipulationEx-Celsius CEO Faces Sentencing for Fraud Charges
Alex Mashinsky, the former CEO of Celsius Network, will face sentencing on May 8 for felony charges related to commodities fraud and manipulating the price of the platform’s token. Prosecutors have submitted impact statements from victims of Celsius’ collapse, detailing financial and personal losses. While some have called for leniency, others, like Daniel Frishberg, argue Mashinsky should face severe consequences for his role in the alleged fraud. The case highlights growing scrutiny over accountability in the crypto industry following high-profile collapses.
about Ex-Celsius CEO Faces Sentencing for Fraud ChargesBen McKenzie’s Crypto Documentary Exposes FTX, Celsius Collapses
Actor Ben McKenzie, known for roles in ‘Gotham’ and ‘The OC,’ is making his directorial debut with a documentary critiquing the cryptocurrency industry. Titled ‘Everyone Is Lying To You For Money,’ the film includes footage from 2022 featuring former FTX CEO Sam Bankman-Fried and Celsius CEO Alex Mashinsky before their companies collapsed. McKenzie questions why deceptive crypto narratives continue to spread, aiming to expose industry truths. The documentary premieres at SXSW London in June, marking McKenzie’s transition from actor to filmmaker with a focus on financial accountability.
about Ben McKenzie's Crypto Documentary Exposes FTX, Celsius Collapses