The $25M GK8 Sale Marks a Turning Point in Celsius Network’s Bankruptcy Battle


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.

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