In a recent development, Celsius, the crypto lender facing bankruptcy, has reached a settlement agreement with its creditors and Series B holders.
As part of the settlement, $25 million will be distributed to the shareholders from the proceeds of GK8’s sale. Out of this amount, $24 million will be used to cover legal expenses, while the remaining $1 million will be divided among the group.
During Celsius’ bankruptcy proceedings, GK8, the self-custody platform, was sold to Galaxy Digital.
Although the specific details of the sale were not disclosed, Michael Wursthorn, a spokesperson for Galaxy, previously mentioned that the sale price was significantly lower than the original purchase price of $115 million paid by Celsius.
In addition, the bankrupt crypto lender successfully completed its Series B funding round in November 2021.
The round, led by growth equity firm Westcap and one of Quebec’s pension funds, surpassed its initial target, increasing the raise from $400 million to $750 million.
Initially, some Series B shareholders expressed concerns about the allocated $24 million not fully covering their legal expenses. On the other hand, another group criticized the distribution of $1 million as an unfair benefit for a specific subset.
In a filing, the majority of Series B shareholders expressed their intention to distribute the $1 million from the settlement equitably among all preferred shareholders.
They also requested the court to dismiss objections and grant approval for the settlement, allowing the continuation of the remaining bankruptcy proceedings, which include matters concerning retail users.
Earlier this month, the bankrupt crypto lender Celsius successfully liquidated approximately $25 million worth of various altcoins, following approval from a US court.
Among the altcoins sold off by Celsius Network were Chainlink (LINK), BNB coin, Synthetix Network (SNX), 1INCH, 0x Protocol (ZRK), and Shiba INU’s BONE, among others.
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