Tether Settles $299.5M Celsius Case, Plans $20B Equity Raise
Tether has settled a $299.5 million lawsuit with the Blockchain Recovery Investment Consortium, resolving litigation over the liquidation of about 40,000 BTC collateral during Celsius Network’s 2022 bankruptcy. CEO Paolo Ardoino confirmed that all Celsius-related claims are resolved. Tether plans a $20 billion equity raise to strengthen its balance sheet amid scrutiny of its $10.1 billion in secured loans. Separately, stablecoin issuer Paxos accidentally minted 300 trillion PYUSD tokens and burned the excess after 22 minutes, triggering Aave to freeze its PYUSD reserves. On the regulatory front, Erebor Bank received preliminary approval for a U.S. national charter. Stripe’s Bridge platform and Sony Bank have also filed for charters. Bernstein analysts expect Circle’s USDC revenue to remain resilient through upcoming rate cuts. Tether has also launched a GENIUS-compliant stablecoin, USAT. Traders should note these developments showcase evolving legal, financial, and regulatory dynamics in the stablecoin market.
Bullish
The news of Tether’s $299.5 million settlement and a planned $20 billion equity raise removes a significant legal overhang and strengthens its balance sheet. This improved financial stability and regulatory compliance are likely to boost confidence in USDT, supporting stablecoin liquidity and reinforcing its market dominance in both the short and long term. While the Paxos PYUSD glitch highlights operational risks in the sector, it may redirect liquidity towards the more robust USDT. Overall, these developments are bullish for Tether and its stablecoin.