Celsius Network's Bankruptcy Battle Takes A New Turn With $25M GK8 Sale
Portfolio Pulse from Murtuza Merchant
Bankrupt crypto lender Celsius Network has sought approval for the distribution of funds from its sale of self-custody platform GK8. The Series B holders have agreed to distribute $25 million from the proceeds of the sale. The majority of the funds, $24 million, will be allocated for legal expenses, with the remaining $1 million to be shared among the holders. The settlement agreement aims to avoid expensive litigation and increased professional fees. Investment firm Galaxy Digital won the bid to buy GK8 in late 2022.
July 18, 2023 | 3:12 pm
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POSITIVE IMPACT
Galaxy Digital, led by Mike Novogratz, won the bid to buy GK8 in late 2022. The acquisition included GK8’s team of 40 experts and an office in Tel Aviv.
The acquisition of GK8 by Galaxy Digital could potentially strengthen the company's position in the crypto market. The addition of a team of experts and a new office location could enhance the company's capabilities and reach.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Celsius Network, a bankrupt crypto lender, is seeking approval for the distribution of funds from its sale of GK8. The majority of the funds will be used to cover legal expenses.
The news indicates that Celsius Network is still dealing with the financial fallout from its bankruptcy. The need to use the majority of the sale proceeds to cover legal expenses suggests ongoing financial difficulties.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100