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.
In July, a New York bankruptcy court had approved a Celsius effort to pursue most of a $4 billion claim against Tether. This $299.5 million recovery settles the matter in the U.S. Bankruptcy Court for the Southern District of New York, according to the statement from BRIC.
Read More: Celsius to Distribute $3B Crypto to Creditors as Firm Emerges From Bankruptcy