The settlement carries up to $35 million, but New York collects only if Mashinsky misses the forfeiture or prison terms set in his federal criminal case, the attorney general’s office said.
Former Celsius CEO Alex Mashinsky is permanently barred from the crypto and securities industries in New York.
Posted October 9, 2026 at 12:15 pm ET.
New York Attorney General Letitia James announced on Friday a settlement with Alex Mashinsky, a co-founder and former CEO of crypto lender Celsius Network, that permanently bars him from the securities, commodities and cryptocurrency industries. Her office said the deal secures up to $35 million.
The money is conditional. Mashinsky owes New York $25 million if he fails to forfeit $10 million in gains to the federal government, on top of assets he has already forfeited. He owes another $10 million if he does not serve his full prison sentence.
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The Federal Case and Bankruptcy Mashinsky is serving a 12-year sentence in a parallel federal criminal case. The Commodity Futures Trading Commission said he pleaded guilty on Dec. 3, 2024, to a commodities fraud charge and a securities fraud charge. He was sentenced on May 8, 2025, and ordered to forfeit $48,393,446. The CFTC also announced on June 18 that a consent order resolved its own case against him, with a permanent injunction and permanent trading and registration bans.
The attorney general’s office said more than $3.4 billion had been distributed to creditors in the Celsius bankruptcy as of August 2026.
What New York Alleged James sued Mashinsky in January 2023, alleging he misled hundreds of thousands of people about Celsius’ safety, more than 26,000 of them in New York. The attorney general’s office said its investigation found he repeatedly described the platform as safer than a bank, even though Celsius did not face bank-level federal or state requirements. It also said investor assets went into high-risk strategies, many of which produced losses he concealed, and that he failed to register as a salesperson and as a dealer under New York law.
“Alex Mashinsky promised New Yorkers that his company was a secure place to invest their hard-earned savings, only to leave them penniless when his risky investments collapsed,” James said in the release. “I will not allow scammers to use cryptocurrencies to prey on unsuspecting New Yorkers.”
The office also encouraged crypto industry workers who have seen misconduct to file whistleblower complaints, which can be made anonymously.
Related Listen: DEX in the City: Why the Supreme Court’s FTC Ruling Could Rewire Crypto Regulation
AI-assisted content: This article was produced with the assistance of AI tools and was reviewed, edited, and fact-checked by a member of the Unchained editorial team before publication.
Celsius Network’s bankruptcy estate has sued BitMEX for the return of 6,360.17 Bitcoin, worth about $495 million, over forced liquidations carried out during the March 2020 COVID market crash.
Summary
Celsius and JST lost a combined 6,360.17 BTC through BitMEX liquidations in March 2020. The estate alleges BitMEX designed its system to profit from liquidated customer collateral. Five BitMEX-linked companies have been named as defendants in the New York bankruptcy case. The complaint remains unproven and was filed shortly before BitMEX ends trading on Sep. 23. The complaint, filed on Sep. 12 in the U.S. Bankruptcy Court for the Southern District of New York, accuses BitMEX-linked companies of fraud, breach of contract, and unjust enrichment tied to the exchange’s liquidation system.
Blockchain Recovery Investment Consortium filed the case in its role as litigation administrator under Celsius’ bankruptcy plan. The defendants are HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings and HDR Global Services.
Operating through several jurisdictions, the named entities have links to Bermuda, the Cayman Islands, England, Hong Kong, the Seychelles and the United States. The filing places the dispute before a U.S. bankruptcy court because the contested claims form part of the remaining assets being pursued for Celsius creditors.
Celsius estate seeks 6,360 BTC from BitMEX According to the complaint, Celsius lost 1,325.84 BTC when BitMEX liquidated its position on March 12, 2020. Investment fund JST lost another 5,034.33 BTC through a liquidation the following day and later assigned its claims to the Celsius estate.
The two positions were structured to earn a return if Bitcoin either held its value or rose, the estate said. Bitcoin instead fell sharply as global markets reacted to the spread of Covid-19, with the sell-off producing one of the most volatile periods in the cryptocurrency’s history.
During the disorder, leveraged positions on derivatives exchanges faced margin calls and forced closures. Celsius and JST allege that BitMEX did more than close their positions to cover trading losses, claiming the exchange took control of Bitcoin collateral that should have been returned.
At the roughly $77,800 valuation used in the supplied claim, the combined 6,360.17 BTC is worth close to $495 million. The value of any potential recovery would still depend on the court’s findings and the form of relief granted, as the lawsuit remains at the complaint stage.
The litigation administrator is pursuing the Bitcoin itself rather than limiting the demand to its dollar value in March 2020. Its claims include fraudulent transfer, conversion, breach of contract, breach of the implied duty of good faith and fair dealing, and unjust enrichment.
BitMEX allegedly controlled both sides of liquidations At the center of the case is BitMEX’s control over the mechanism that determined when leveraged positions would be closed. The Celsius estate alleges that the exchange also controlled the insurance fund that received assets generated by some liquidations, creating a financial interest in how the process operated.
“BitMEX intentionally designed its platform and liquidation procedures to cause liquidations of collateral and defraud its own customers,” the complaint says.
Rather than sell only enough collateral to settle an account’s obligations, BitMEX allegedly retained excess Bitcoin after closing positions. The defendants have not been found liable for the conduct described in the filing, and the allegations will need to be tested through the U.S. court process.
Similar claims appeared in a proposed class action filed in July by BKX Services and trader David Namdar. As crypto.news previously reported, the plaintiffs alleged that BitMEX engineered forced liquidations and retained 622.66 BTC that should have gone back to customers.
BKX said it lost at least 305.81 BTC, while Namdar claimed losses of more than 316.85 BTC. Their case also alleged that BitMEX’s internal trading operation had access to private customer information and could continue operating during server outages that stopped users from managing their positions.
The proposed class action seeks to represent eligible U.S. traders who used BitMEX’s Bitcoin perpetual swap products in transactions dating back to July 23, 2018. Celsius’ complaint is separate and concerns losses from March 2020, although both cases challenge how the exchange handled customer collateral during forced liquidations.
The case adds another asset-recovery effort for creditors Celsius’ pursuit of BitMEX forms part of the litigation left behind by the crypto lender’s Chapter 11 case. Celsius froze withdrawals in June 2022 and filed for bankruptcy the following month after losses and liquidity problems left customers unable to retrieve their assets.
Court records later raised questions about the gap between the lender’s public claims and its trading practices. Celsius had promoted strategies such as arbitrage, carry trades and funding-rate harvesting as relatively low-risk ways to generate returns for depositors.
A July 2022 bankruptcy filing said the company had instead used “several highly speculative derivative and asset deployment mechanisms.” Court-appointed examiner Shoba Pillay’s final report also documented trading, risk-control and recordkeeping failures inside the lender.
The BitMEX position described in the new complaint relied on pooled customer assets and carried leveraged exposure during a severe market decline. Although the liquidation allegedly harmed Celsius, the bankruptcy records show that the lender itself had exposed customer funds to speculative trades while presenting its business as safer than its internal practices suggested.
Celsius began working through its repayment plan after a New York bankruptcy judge approved its restructuring. In January 2024, the company started distributing assets under a plan that provided more than $3 billion in cryptocurrency and other property to creditors.
Creditor recoveries later included shares in Ionic Digital, a Bitcoin mining company created through the restructuring. Former Celsius creditors received about 37 million Class A shares, and Ionic subsequently secured SEC approval for its planned Nasdaq listing in July.
A third payout round began in August 2025 with approximately $220.6 million allocated to eligible creditors. Recoveries obtained through estate litigation can add assets to the bankruptcy process, although the BitMEX complaint does not guarantee a payment or set a timetable for resolving the claims.
BitMEX faces the lawsuit before its Sep. 23 closure The Celsius action is the second lawsuit challenging BitMEX’s liquidation practices since the exchange announced in July that it would close. BitMEX instructed customers to wind down positions and withdraw funds before trading ends on Sep. 23.
Founded in 2014, the exchange became known for offering highly leveraged cryptocurrency derivatives, including its Bitcoin perpetual swap. Its influence later declined as competition increased and regulated futures platforms gained more institutional business.
BitMEX has also faced prior action from U.S. authorities. In January 2025, a federal judge ordered HDR Global Trading to pay a $100 million criminal fine after the company admitted violating the Bank Secrecy Act by operating without an adequate anti-money-laundering program.
The criminal case concerned BitMEX’s compliance controls between 2015 and 2020, not the liquidation conduct alleged by Celsius. U.S. prosecutors said the exchange had served American customers without the required safeguards, while earlier civil proceedings brought by the Commodity Futures Trading Commission and Financial Crimes Enforcement Network produced settlements of up to $100 million.
BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed had pleaded guilty in 2022 to Bank Secrecy Act violations. President Donald Trump pardoned the three founders in 2025, along with former executive Gregory Dwyer and the corporate entities connected to the exchange.
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Bitcoin price is consolidating above $20,000.Ethereum is struggling near $1,600, XRP is well below $0.35.CEL surged nearly 20%, and RVN is again pumping.Bitcoin price found support near the $20,000 level after a strong decline. BTC is currently (11:10 UTC) consolidating above $20,000. It could start a fresh increase if there is a clear move above $20,800.
Similarly, most major altcoins are consolidating near support zones. ETH is struggling to stay above the $1,600. XRP might decline and test the $0.32 support. ADA is facing resistance near $0.48 and $0.482.
Bitcoin priceAfter a strong decline, bitcoin price found support near the $20,000 zone. BTC remained well bid above the $20,000 zone and recently started a consolidation phase. It managed to correct a few points above the $20,250 level. On the upside, the price is facing resistance near the $20,500 level. The next major resistance is now near the $20,800 level, above which the price could start a decent increase.
On the downside, an initial support is near the $20,050 level. The next major support is near the $20,000 zone, below which the price could start another strong decline.
Ethereum priceEthereum price managed to stay above the $1,550 support zone. ETH started an upside correction and traded above the $1,580 level. It even climbed above $1,600, but it is struggling to gain bullish momentum. The first major resistance is near $1,620. The next major resistance is near $1,650, above which the price may perhaps rise to $1,700.
If not, the price might start another decline towards the $1,550 level. The next major support is $1,500, below which price could gain bearish momentum.
ADA, BNB, SOL, DOGE, and XRP priceCardano (ADA) settled well below the $0.50 level. The price is now struggling to recover above the $0.48 level. If there is no upside break, the price may perhaps decline towards the $0.45 level.
BNB is slowly recovering losses and trading near the $280 level. An immediate resistance is near the $282 level. The first major resistance is near $288, above which the price could rise towards the $300 level.
Solana (SOL) declined over 12% and tested the $32.65 level. It is now trading near $33.50 level. The next major support sits near the $32.50 level. On the upside, the bears might remain active near the $35.00 level.
DOGE is consolidating above the $0.060 level. A downside break and close below the $0.060 level could spark a sharp decline. In the stated case, the price might slide towards the $0.0565 level.
XRP price is consolidating near the $0.335 level. If there are more downsides, the price could slide and test the $0.32 support. The next major support is $0.305.
Other altcoins market todayMany altcoins are down over 10%, including LUNA, USTC, LUNC, HNT, APE, AVAX, EOS, NEAR, FTT, GMT, and ATOM. Out of these, LUNA dived over 30% and traded below the $3.0 level.
To sum up, bitcoin price is consolidating above the $20,000 level. If BTC stays above $20,000, it could recover towards $21,200. If not, it might dive to $18,500.
Celsius Network just got the green light to take Tether to court over one of the biggest disputes in recent crypto history – a $4 billion lawsuit centered around the liquidation of Bitcoin during Celsius’s collapse in 2022.
A U.S. bankruptcy judge has allowed the case to move forward, rejecting major parts of Tether’s attempt to shut it down. The ruling could have lasting consequences for how global crypto firms are held accountable in U.S. courts, especially when billions are on the line.
Here are the deets.
Tether’s “Fire Sale” of Bitcoin Under ScrutinyThe case goes back to June 2022, when Celsius was already under pressure as crypto markets crashed. Tether, which had lent money to Celsius, allegedly sold over 39,500 BTC at an average price of $20,656, well below market value at the time. Celsius says this was done without proper notice AND in violation of a 10-hour waiting period that was part of their agreement.
Celsius claims this move not only broke their contract, but also amounted to fraudulent and preferential transfers under U.S. bankruptcy law. At today’s prices, Celsius says the early liquidation cost them over $4 billion worth of Bitcoin.
The BTC, according to court documents, was later moved to Bitfinex, Tether’s sister company.
Tether’s Jurisdiction Argument FailsTether tried to get the case dismissed, arguing that a U.S. court has no authority since the company is based in the British Virgin Islands and Hong Kong. But the judge disagreed.
The court found that Tether used U.S.-based personnel, bank accounts, and communications in its dealings with Celsius enough to consider the activity “domestic.” That ruling now opens the door for Celsius’s lawsuit to proceed in the U.S., even though Tether operates offshore.
Some lesser claims were dismissed, but the judge is allowing Celsius to pursue key charges – including breach of contract, fraudulent transfer, and preferential transfer.
Big Implications for Crypto Lending and StablecoinsThis isn’t just a courtroom fight between two crypto companies. The ruling could influence how similar cases are handled in the future especially when it comes to stablecoin issuers, asset custody, and cross-border lending practices.
If Celsius proves its claims, it could raise serious questions about how major players like Tether manage client assets during times of market stress.
Also Read : Tether Keeps Expanding Despite Legal PressureWhile the legal battle continues, Tether isn’t slowing down. The company recently bought a majority stake in Twenty One Capital, a firm linked to Strike CEO Jack Mallers. With that move, Tether is now connected to the third-largest corporate Bitcoin holder in the world.
Tether also transferred nearly 37,230 BTC, worth about $3.9 billion, to addresses tied to the platform further strengthening its position in the Bitcoin market.
In the middle of all this, CEO Paolo Ardoino has dismissed talk of a Tether IPO. Even as speculation swirls over a possible $500 billion valuation, Ardoino said the company has “no plans” to go public.
What’s Next?The case now heads to the next phase, with Celsius aiming to hold Tether accountable for what it sees as a massive breach of trust.
Never Miss a Beat in the Crypto World!Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
We’ll keep you updated on how this plays out – right here on Coinpedia.
FAQsWhat exactly did Tether do wrong in the Bitcoin liquidation, and how did it violate the agreement with Celsius?
Celsius alleges Tether conducted a “fire sale” of over 39,500 BTC without proper notice and below market value, violating a 10-hour waiting period specified in their agreement. Celsius claims this breached their contract and constituted fraudulent and preferential transfers under U.S. bankruptcy law, costing them over $4 billion.
How does the court’s ruling on U.S. jurisdiction affect other offshore crypto companies?
The court’s ruling, which found U.S. jurisdiction over Tether despite its offshore base due to “domestic” activities (U.S.-based personnel, bank accounts, communications), sets a significant precedent. It suggests that offshore crypto companies with substantial operational or transactional links to the U.S. may be subject to U.S. legal scrutiny and accountability, regardless of their official incorporation location.
Story Ends Here
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A U.S. bankruptcy judge has ruled that Celsius Network’s lawsuit against Tether can proceed, rejecting key arguments Tether raised to dismiss the case.
A U.S. bankruptcy judge in the Southern District of New York has ruled that Celsius Network’s lawsuit against Tether (USDT) can proceed, granting in part and denying in part Tether’s motion to dismiss, according to a memorandum opinion and order filed in the Celsius bankruptcy case on June 30.
Celsius Network accused Tether of improperly liquidating over 39,500 Bitcoin (BTC) in June 2022 as crypto prices crashed. The 39,500 BTC was put up as collateral for loans Celsius took from Tether, but the crypto lender claims Tether executed a rushed “fire sale” at an average price of $20,656 per BTC — well below market value — and failed to honor a contractual 10-hour waiting period before selling collateral.
Celsius claims the liquidation cost it over $4 billion at current Bitcoin prices and constituted breach of contract, bad faith dealing, and fraudulent and preferential transfers avoidable under U.S. bankruptcy law.
In a blog post, Tether described the lawsuit as “baseless,” stating:
“Under the agreement, Celsius posted bitcoin (BTC) to Tether as collateral. As the price of BTC began to fall in June 2022, the agreement required Celsius to post additional collateral to avoid the liquidation of its BTC. When Celsius chose not to post additional BTC it directed Tether to liquidate the BTC collateral Tether held in order to close out its roughly 815 million USD₮ position with Tether.”
Celsius, however, contends that Tether sold the BTC at a price that nearly matched the outstanding debt — without giving Celsius a chance to post more collateral, as the agreement allegedly required.
In August last year, Tether sought to dismiss the lawsuit, arguing that its operations in the British Virgin Islands and Hong Kong placed the case outside U.S. jurisdiction, calling the claims an impermissible extraterritorial application of U.S. law.
However, the judge found Celsius presented a plausible case that the alleged misconduct involved U.S.-based communications, personnel, and financial accounts, making the claims sufficiently domestic. While some counts were dismissed, Celsius’s core claims — including breach of contract and fraudulent transfer —will move forward in court.
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A US bankruptcy judge has granted permission for Celsius Network, the bankrupt cryptocurrency lender, to pursue its lawsuit against Tether, the issuer of the market’s largest stablecoin, USDT.
Celsius Alleges ‘Fire Sale’ Of BTC According to the filing, Celsius claims that it was in the process of preparing Bitcoin (BTC) to meet a collateral demand from Tether when Tether’s representatives insisted on immediate payment.
This demand led to what Celsius describes as a “fire sale” of its collateral, resulting in the sale of 39,542.42 BTC. The company had transferred this amount to Tether as collateral in the 90 days leading up to its bankruptcy, which included various “top-up transfers” and new loan collateral.
The details of the case reveal that Celsius is seeking the return of approximately 57,428.64 BTC, valued at around $4 billion, in addition to claiming $100 million in damages for breach of contract.
However, there is a notable discrepancy regarding the valuation of these Bitcoin transfers; while Celsius demands the return of the full amount, Tether’s own communications suggest that the value involved is only $2.4 billion.
Is Tether Preparing For Its Legal Defense? In its legal arguments, Celsius has asserted that Tether’s actions reflect a broader “scheme to exploit the US cryptocurrency market,” which they believe could serve as a basis for jurisdiction in this case.
Moreover, Celsius contends that the transfers made to Tether were preferential and should be scrutinized under bankruptcy law. They argue that the stablecoin issuer received more than it would have in a Chapter 7 liquidation, thus establishing a preference claim.
Tether, for its part, dismissed the lawsuit back in August 2024 as a “shake down,” asserting that Celsius was responsible for providing additional collateral as Bitcoin prices fluctuated. Tether maintains that their demands were justified and that Celsius’s mismanagement should not impose undue costs on them.
On Wednesday, Tether CEO Paolo Ardoino shared a brief video clip on the social media platform X, formerly known as Twitter, depicting a gladiator in a combat arena.
This could indicate that the company will defend itself against Celsius’ claims, which could result in a prolonged legal dispute between the two parties. However, Tether’s official statement on the matter is still pending.
The daily chart shows the crypto market cap at $3.32 trillion. Source: Total on TradingView.com In addition to the market’s regulatory developments, Bitcoin experienced a significant increase, nearing its record high of $111,800 reached in mid-May of this year. As of this writing, the market’s leading cryptocurrency trades at $108,689, representing a 3% price increase in the 24-hour time frame.
However, BTC reached a three-week high of $109,800 earlier on Wednesday, but was unable to surpass its nearest resistance at the $110,000 mark.
Featured image from DALL-E, chart from TradingView.com
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A U.S. judge allowed Celsius’ $4 billion lawsuit against Tether to proceed, finding enough domestic ties despite offshore operations.
(Photo of Jen Titus on Unsplash)
Posted July 3, 2025 at 10:11 am EST.
U.S. bankruptcy judge Martin Glenn has ruled that Celsius Network’s $4 billion lawsuit against stablecoin giant Tether can proceed, rejecting major portions of Tether’s motion to dismiss the case.
The lawsuit centers on allegations that Tether improperly liquidated over 39,500 BTC held as collateral for Celsius loans during the crypto market crash in June 2022.
Celsius alleged that Tether breached their lending agreement by selling the BTC collateral before a contractually required 10-hour waiting period had elapsed, and at an average price of $20,656, below prevailing market rates.
This story is an excerpt from the Unchained Daily newsletter.
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Meanwhile, Tether’s case for dismissal was built on the fact that both companies are based offshore and the transactions were international. But the judge found sufficient ties to the U.S., including U.S.-based accounts and systems, to allow the case to proceed.
Last August, Tether CEO Paolo Ardoino labelled the lawsuit “baseless” and claimed that Tether was acting on Celsius’ instructions to liquidate the BTC and return it to Celsius.
In the first half of 2024, Tether’s profits surged to around $5.2 billion, largely from interest income on its reserve assets, mainly U.S. government debt, which had grown to nearly $98 billion by mid-2024 and approached $120 billion by early 2025.
Tether agreed to give $300 million to close a bankruptcy dispute with failed crypto lender Celsius.The entity chasing the money, the Blockchain Recovery Investment Consortium, is run by GXD Labs and VanEck. Celsius — one of the infamous stars of the crypto industry's disastrous 2022 — exited bankruptcy last year. The wind-down of defunct crypto lender Celsius coughed up almost $300 million from Tether, according to a Tuesday statement from an entity set up 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 litigation assets tied to Celsius, the companies said. The joint venture had previously sought to acquire the assets of the insolvent crypto lender, but the remnants of Celsius Network went to rival bidder Fahrenheit in 2023.
Spokespeople for the two companies didn't immediately respond to a question on the benefits each of them expected from this development.
The collapse of Celsius in 2022 was one of the string of industry crises that sparked the crypto winter of that year, which saw massive losses in the markets and significant damage to other major digital assets businesses. It exited its bankruptcy last year, shipping out more than $3 billion to creditors.
Stablecoin issuer Tether has agreed to pay $299.5 million to the Celsius Network bankruptcy estate, settling years of litigation tied to the crypto lender’s 2022 collapse.
The payment is far below the nearly $4.5 billion Celsius originally sought in bitcoin.
The Blockchain Recovery Investment Consortium (BRIC) — a partnership between VanEck and GXD Labs — announced the settlement Tuesday, saying it settles “all issues” between Tether and the Celsius estate.
“We are pleased to have resolved Celsius’s adversary proceeding and related claims against Tether,” said David Proman, managing partner at GXD Labs.
Tether and the Celsius collapse The settlement ends one of the most contentious cases in crypto bankruptcy history. 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.
Celsius said Tether violated an agreement requiring a 10-hour notice before selling the assets, costing the lender any remaining equity in the position.
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.
When Celsius failed to meet the margin call, Tether said it liquidated the bitcoin at Celsius’s direction to cover an $815 million debt.
A U.S. bankruptcy judge in New York allowed Celsius’s case to move forward earlier this year, though Tether denied wrongdoing.
The $299.5 million payment was arranged through BRIC, a joint recovery vehicle set up in early 2023 to pursue claims and recover assets from collapsed crypto firms.
BRIC was appointed by the Celsius debtors and creditors’ committee in January 2024 to oversee asset recovery and litigation management, according to the BRIC release on the matter.
While the payment represents a win for Celsius creditors, it’s a modest one compared to the scale of losses from the company’s collapse.
Celsius, once one of the largest crypto lenders, froze withdrawals in mid-2022 amid plunging token prices and failed investments. Its bankruptcy exposed billions in customer losses and alleged mismanagement by top executives.
Former Celsius CEO Alex Mashinsky was sentenced in May to 12 years in prison for fraud and market manipulation. Prosecutors said he misused customer funds and inflated the price of the platform’s CEL token. In June, Mashinsky agreed to forfeit any claims to assets from the bankruptcy estate.
The Celsius collapse became one of the defining moments of crypto’s 2022 credit crisis, alongside failures at Voyager, BlockFi, and FTX.
The fallout triggered a wave of litigation and recovery efforts that continue to reshape how courts treat crypto lending and collateral agreements.
Micah Zimmerman
Micah first discovered Bitcoin in 2018 but remained a skeptic on the sidelines for too long. Since 2021, he has covered crypto and business and now works as a news reporter for Bitcoin Magazine, based in North Carolina.
Celsius won a $300 million settlement from Tether in bankruptcy court, closing a key dispute over liquidated bitcoin collateral.
Posted October 15, 2025 at 10:07 am EST.
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.
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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.
Bhutan moved $22.4 million in Bitcoin out of sovereign wallets this week, including a direct transaction to institutional market maker QCP Capital. The Himalayan nation’s crypto portfolio has dropped from a $1.4 billion peak to about $412 million.
The outflows continue a pattern of periodic liquidations by the Royal Government of Bhutan, which began mining and holding Bitcoin in 2019. These recent transactions highlight questions facing sovereign crypto strategies amid ongoing market pressures.
Recent Bitcoin Sales and Transaction PatternsBlockchain analytics platform Arkham confirmed the Bitcoin sales. Two major outflows came from Druk Holding Investments (DHI), Bhutan’s sovereign investment arm. The transactions included 184.03 BTC, worth $14.09 million, and 100.82 BTC, valued at $8.31 million, five days earlier. The latter went directly to labeled addresses tied to QCP Capital, a Singapore-based institutional market maker active in derivatives and spot markets.
According to Arkham’s analysis, Bhutan usually sells Bitcoin in roughly $50 million tranches. Historical data shows especially heavy sales between mid and late September 2025, with multiple transactions surpassing $50 million each. The current $22.4 million in weekly outflows is smaller than past sales, suggesting either more measured liquidation or reduced holdings.
Recent Bitcoin transactions from Bhutan’s sovereign wallets show outflows totaling $22.4 million (Arkham)The QCP Capital transaction signals a strategic liquidation rather than distressed selling. Market makers such as QCP enable large block trades without major market disruption. This allows sovereigns to exit positions while minimizing price impact, unlike direct exchange deposits that may trigger sharper reactions.
Bhutan’s Bitcoin Mining Operation and ProfitabilityBhutan’s Bitcoin strategy began in 2019, with DHI launching a mining operation powered by the country’s abundant hydroelectric resources. Arkham estimates that Bhutan has generated over $765 million in Bitcoin profits since its inception, while total energy costs were about $120 million. Hydropower has kept costs low compared with competitors that rely on fossil fuels.
The 2024 Bitcoin halving fundamentally changed mining economics. This event, which occurs about every four years, halves block rewards. The halving essentially doubled the cost to mine one Bitcoin, making operations less efficient. Data indicate that Bhutan mined most of its holdings before April 2024 and then sharply cut back production.
Pre-halving profit margins enabled Bhutan to amass substantial holdings at favorable costs. However, reduced efficiency after halving likely pushed the nation to monetize its reserves rather than continue energy-intensive mining at lower returns. This strategic shift from accumulation to selective selling mirrors a wider industry trend as sector profitability compresses.
Portfolio Decline and Current HoldingsBhutan’s cryptocurrency portfolio has experienced a dramatic contraction. Arkham Intelligence data show DHI’s on-chain assets currently total about $412 million, down over 70% from the $1.4 billion peak. The portfolio consists mostly of 5,700 BTC, with negligible holdings in Ethereum and other tokens.
The portfolio decline is due to ongoing sales and depreciation in the Bitcoin price. Some value erosion came from strategic liquidations for profit or fiscal needs, but broader market conditions during 2025 and early 2026 also contributed. Bhutan’s peak holdings aligned with Bitcoin’s price highs, amplifying the percentage drop as prices corrected.
Transaction history shows DHI’s main exchange partners are Binance—which has $261 million in transferred value, or 68% of activity—and Celsius Network, with $118 million (31%). Smaller amounts moved through Kraken. These exchange interactions, combined with direct transactions with market makers, show a sophisticated approach to treasury management by Bhutan.
The Druk Holding and Investments entity manages these digital assets along with traditional investments as part of Bhutan’s broader diversification strategy. The integration of cryptocurrency into the sovereign treasury positions Bhutan among a select group of nations involved directly in digital asset markets. Whether Bhutan’s continued liquidations indicate a full exit or just portfolio rebalancing remains an open question as observers track sovereign crypto adoption trends.
PANews reported on April 23 that the Bank for International Settlements (BIS) released a research report stating that cryptocurrency exchanges are providing bank-like lending services through products such as "wealth management" and "yields," but lack deposit insurance and regulatory protection, essentially forming a "shadow banking" model. The report points out that these products concentrate user assets in high-risk activities, leaving users with only unsecured claims on those assets, directly exposing them to the platform's solvency risks. The report also cites the collapses of Celsius Network and FTX, as well as the flash crash in October 2025, emphasizing that high leverage, lack of transparency, and lack of protective mechanisms could trigger systemic risks.
US-listed AI chip stocks saw mixed pre-market performance, with Qualcomm surging 13%.
According to Bitget market data, U.S. AI chip stocks posted mixed pre-market performance: Qualcomm (QCOM.O) surged 13%, Intel (INTC.O) rose nearly 6%, AMD (AMD.O) gained nearly 4%, and Google (GOOG.O) declined 1.4%.
2 minutes ago
Micron Technology surges 18% in pre-market trading on US stocks
According to Bitget market data, the US stock storage sector is seeing broad pre-market gains. Micron Technology (MU.O) jumps 18% in pre-market trading, as its strong earnings significantly exceeded expectations, with multiple major banks raising the stock’s target price. SanDisk (SNDK) rises 12.25%, Western Digital (WDC) gains 12.05%, and Seagate Technology (STX) climbs 8.63%.
2 minutes ago
SBI announced it will acquire cryptocurrency trading platform Bitbank for 46.7 billion yen.
According to Nikkei News, Japanese financial group SBI Holdings announced on the 25th that it will acquire cryptocurrency exchange platform bitbank for 46.7 billion yen (approximately $288 million). Upon completion of the transaction, SBI Group’s crypto asset custody scale is expected to exceed 1 trillion yen, making it one of the largest operators in Japan’s crypto industry. Per the plan, a subsidiary under SBI Holdings will acquire Bitbank shares from individual shareholders including its founders as early as August this year. Bitbank will then repurchase shares held by existing shareholders MIXI and Ceres by the end of October. If combining data from SBI’s own crypto exchange SBI VC Trade and Bitbank, as of April this year, the two firms had a total of around 2.92 million accounts and total custody assets of approximately 1.1 trillion yen. While different crypto exchanges disclose custody assets at varying time points, among Japan’s major industry competitors, bitFlyer held about 960 billion yen in custody assets as of the end of December 2025, and Coincheck had around 800 billion yen as of the end of March 2025.
2 minutes ago
Bithumb was fined for sharing user data overseas without consent.
South Korean regulatory authorities have ordered cryptocurrency exchange Bithumb to pay a 210 million won (approximately $136,000) fine for sharing user personal information with overseas platforms without user consent. According to an announcement released Thursday by South Korea’s Personal Information Protection Commission (PIPC), the relevant user data exposure occurred between September and November 2025. At that time, Bithumb transferred user information to overseas platforms while sharing its USDT market order book data. The PIPC also noted that when assisting users with asset transfers to 13 overseas exchanges, Bithumb failed to obtain full and sufficient user consent before sharing personal details including names, wallet addresses, and dates of birth. For the two violations, the PIPC not only imposed the fine but also ordered Bithumb to rectify its processes and management systems related to cross-border transmission of user information.
Two useful trading techniques that have become popular in the cryptocurrency space recently are staking and lending.
Today, my goal is to discuss the difference between staking and lending and how you can use these techniques to adapt your trading strategy depending on your risk/reward profile.
Essentially, while staking helps to secure the network and in turn pays users with newly minted coins, lending allows users to lock up their coins and receive an interest payment.
I cannot say one strategy is better than the other, as it depends on what type of investor you are.
If you like to directly participate in a protocol, perhaps staking is more your thing, while if you’re simply looking to get an interest payment, lending could be the right choice for you.
Similarly, if you consider giving up control of your coins too risky no matter what, then you may think neither strategy is worthwhile. It’s completely up to you, and you should always do your own research and make sure you’re comfortable with your level of risk/reward when trading.
As always, the views in this article should not be considered financial advisement.
Staking coins What are some of the best coins for cryptocurrency staking? Learn about staking #NavCoin, #Pivx, #Komodo, #Decred, and more at https://t.co/LMASrGgayY #Staking #Crypto #ProofOfStake pic.twitter.com/z7sSKCd15u
— Switchain (@switchaindotcom) October 21, 2019
Although there’s a bunch of Proof-of-Stake (PoS) protocols available – like Ardor, Dash, or EOS – I will instead focus on which exchanges, preferably non-custodial, allow users to stake coins directly.
The first I’ll discuss is IDEX.
IDEX, as the name indicates, is a decentralised exchange where users own their private-public key pairs. To trade, users sign transactions using interfaces such as MetaMask.
IDEX also incorporates the AURA token – the exchange’s native currency – which encourages users to stake the coin and help support the network. The AURA token enables stakers to earn a share of fees generated by IDEX and other Aurora products.
By staking AURA, node operators will be rewarded proportionately to their percentage stake, and 50% of fees have been allocated to be paid to AURA stakers. Traders will also be able to utilise the Boreal coin as a payment option for trading fees or as a stable base currency.
The second exchange worth mentioning is Switchain.
Switchain is an instant non-custodial cryptocurrency exchange with a user-friendly platform that makes trading crypto easy and fast.
Switchain works with different cryptocurrency trading partners to guarantee the best cryptocurrency rates for its clients.
An important partner I would like to mention is Exodus, one of the most widely used crypto wallets. By integrating Switchain’s fixed rate API, users of Exodus wallets have been able to exchange crypto assets with a single click.
Switchain works in a non-custodial manner, and the wallet creates an exchange on behalf of the user. The user sends the coins and receives the exchanged asset instantly.
Lending coins If you hold different crypto-assets, then you can make them work for you in a high-interest account. Companies like BlockFi and Celsius Network provide a simple way to earn up to 10% interest on your crypto-assets per annum.
You have to read the fine print and do your own research as there are many different companies around offering to pay interest on different cryptocurrencies. Be sure you know the lock-up period (if any) and what rates you get on each coin.
Celsius won’t pay you 10% interest on your BTC, for example. But they will give you somewhere between 4-5% depending on how much you hold with them. If you want to earn the big interest rates, you could consider purchasing a stablecoin like TRUEUSD or Gemini Dollar with your fiat and holding there rather than with a bank.
At the end of the day, with all these solutions, you have to give up custody of your coins. If that’s not a problem for you, earning some additional benefits on your crypto makes a lot of sense. If you’re a firm believer that you should retain your private keys at all times, you may be better off simply HODLing after all.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.
