Celsius Agrees to $25 Million Allocation of GK8 Sale Proceeds with Series B Holders

Bankrupt cryptocurrency lender Celsius, its creditors and its Series B holders have reached an agreement regarding the distribution of $25 million in proceeds from the sale of crypto custodian GK8.

According to the filing, the settlement seeks to set aside $24 million for legal expenses while the remaining $1 million is allocated among Series B holders. The court document also states that the settlement agreement was born out of a “mutual desire” to prevent costly legal disputes and a comprehensive confirmation process, which would lead to higher professional fees.

• The settlement between the debtors, the committee and the holders of the preliminary agreed Series B preferred is said to have been “thoughtfully negotiated and is highly fair.”
• Admission Reading,

“The settlement ends nearly a year of highly contentious litigation and removes one of the biggest hurdles to confirmation and emergence in exchange for a $25 million cash settlement from the proceeds of the GK8 sale and a mutual release of claims between the preliminary agreed Is. Series B Preferred Holders and the Estate Parties.

• GK8 was initially acquired by Celsius in November 2021 for an undisclosed sum, which was later disputed to be $115 million.
• Although Celsius filed for Chapter 11 bankruptcy protection last summer following the collapse of Terra’s ecosystem, Mike Novogratz-led Galaxy Digital agreed to buy the Israel-based company as part of bankruptcy proceedings. .
• Alex Mashinsky, the former CEO of Celsius, was arrested last week and charged with wire fraud and other crimes.
• US prosecutors also alleged that the executive inflated the price of his company’s cryptocurrency to lure customers to the platform.

Bankrupt cryptocurrency lender Celsius, its creditors and its Series B holders have reached an agreement regarding the distribution of $25 million in proceeds from the sale of crypto custodian GK8.

According to the filing, the settlement seeks to set aside $24 million for legal expenses while the remaining $1 million is allocated among Series B holders. The court document also states that the settlement agreement was born out of a “mutual desire” to prevent costly legal disputes and a comprehensive confirmation process, which would lead to higher professional fees.

• The settlement between the debtors, the committee and the holders of the preliminary agreed Series B preferred is said to have been “thoughtfully negotiated and is highly fair.”
• Admission Reading,

“The settlement ends nearly a year of highly contentious litigation and removes one of the biggest hurdles to confirmation and emergence in exchange for a $25 million cash settlement from the proceeds of the GK8 sale and a mutual release of claims between the preliminary agreed Is. Series B Preferred Holders and the Estate Parties.

• GK8 was initially acquired by Celsius in November 2021 for an undisclosed sum, which was later disputed to be $115 million.
• Although Celsius filed for Chapter 11 bankruptcy protection last summer following the collapse of Terra’s ecosystem, Mike Novogratz-led Galaxy Digital agreed to buy the Israel-based company as part of bankruptcy proceedings. .
• Alex Mashinsky, the former CEO of Celsius, was arrested last week and charged with wire fraud and other crimes.
• US prosecutors also alleged that the executive inflated the price of his company’s cryptocurrency to lure customers to the platform.