The liquidation of defunct cryptocurrency lender Celsius generated nearly $300 million from Tether, according to a Tuesday statement from an entity created by GXD Labs and VanEck, the Blockchain Recovery Investment Consortium. GXD Labs, a subsidiary of Atlas Grove Partners, and asset manager VanEck established BRIC to “maximize recoveries in complex digital asset bankruptcies like Celsius,” they said.
BRIC continues to manage a portfolio of illiquid and litigious assets linked to Celsius, the companies said. The joint venture had previously attempted to acquire the assets of the insolvent crypto lender, but the remains of Celsius Network passed to rival bidder Fahrenheit in 2023.
Spokespeople for the two companies did not immediately respond to a question about the benefits each of them expected from this development.
The Celsius collapse in 2022 was one of the series of industrial crises that triggered that year’s crypto winter, causing massive market losses and significant damage to other major digital asset companies. It emerged from bankruptcy last year and sent more than $3 billion to its creditors.
In July, a New York bankruptcy court approved an effort by Celsius to pursue most of a $4 billion lawsuit against Tether. This recovery of $299.5 million resolves the matter in the United States Bankruptcy Court for the Southern District of New York, according to the BRIC statement.
Read more: Celsius to distribute $3 billion worth of cryptocurrencies to creditors as company emerges from bankruptcy
