The liquidation of defunct crypto lender Celsius netted Tether nearly $300 million, according to a statement released Tuesday by an entity created by GXD Labs and VanEck, the Blockchain Recovery Investment Consortium. GXD Labs, an affiliate of Atlas Grove Partners, and asset manager VanEck created BRIC to “maximize recoveries during complex digital asset bankruptcies like Celsius,” they said.
BRIC continues to manage a portfolio of illiquid and disputed assets linked to Celsius, the companies said. The joint venture had previously sought to acquire the assets of the insolvent crypto lender, but the remains of Celsius Network went to rival bidder Fahrenheit in 2023.
Spokespeople for the two companies did not immediately respond to a question about what benefits each of them expected from the development.
Celsius’ collapse in 2022 was one of several industry crises that triggered that year’s crypto winter, which led to massive market losses and significant damage to other major digital asset companies. It emerged from bankruptcy last year, sending more than $3 billion to creditors.
In July, a New York bankruptcy court approved an effort by Celsius to pursue the bulk of a $4 billion claim against Tether. This $299.5 million recovery settles the case in the U.S. Bankruptcy Court for the Southern District of New York, according to the BRIC statement.
Read more: Celsius to distribute $3 billion in crypto to creditors as company emerges from bankruptcy
