The company’s shareholders have approved spending $25M on litigation. The purpose of the settlement is to prevent further legal action and a drawn-out confirmation procedure.
Celsius Network filed for bankruptcy on July 17, and on July 17 they revealed that its Series B holders had agreed to split $25 million of the money made from selling GK8 among themselves.
This settlement was approved by the debtors, the creditor committee, and the original consenting holders of Series B preferred stock. The shareholders proposed using $24,000,000 for the legal fees and dividing the remaining $1,000,000.
The parties reached an agreement in order to avoid costly litigation and a drawn-out confirmation procedure, both of which would have resulted in higher professional expenses.
Creditors stand to gain a great deal from the settlement, while the debtors and all parties involved get invaluable peace of mind about the future as a result. Further, the petition argued that the court should award the relief sought in the motion by rejecting the defendant’s arguments.
In late 2021, Celsius paid $115 million to acquire the Israeli self-custody business GK8. In 2022, Celsius collapsed, forcing the distressed crypto lender to sell GK8 as part of a reorganisation.
In addition to GK8’s Tel Aviv headquarters, Galaxy also received access to its staff of forty professionals, including cryptographers and blockchain developers.
Attend Benzinga’s Future of Crypto on November 14th, 2023 in New York City to learn about developments in the cryptocurrency industry, including artificial intelligence, laws, SEC actions, and institutional adoption. Purchase your discounted “early bird” tickets today!
Also Read: Ripple Is Certain That U.S. Financial Institutions Will Use XRP for Financial Transactions
