• Celsius acquired GK8 for $115 million in 2021 but was forced to sell it as part of its restructuring process.
• Series B holders have agreed to a settlement on how the $25 million from the sale of GK8 would be distributed, with $24 million going towards legal expenses and $1 million to the holders.
• The court is being requested to provide relief in the motion, allowing creditors to benefit and all parties involved gain invaluable peace of mind regarding the future.
Celsius Acquires GK8
Celsius acquired GK8 for $115 million in 2021 as part of a strategic move to strengthen its position in the crypto lending sector.
Sale Forced by Restructuring Process
Unfortunately, following the collapse of Celsius in 2022, it was forced to sell GK8 as part of its restructuring process.
Agreement Reached Between Shareholders
Series B holders have proposed that allocating $24 million from the sale proceeds be used for legal expenses and $1 million be allocated to holders. A filing has been submitted requesting relief from the court on this agreement.
Benefits for Creditors & Parties Involved
The agreement benefits creditors greatly and provides invaluable peace of mind regarding the future for debtors and all parties involved.
Legal Challenges Abound
Celsius is facing numerous legal challenges recently with lawsuits from both SEC and CFTC as well as a hefty fine levied by FTC against them.