After many difficulties, Celsius finally finds a way out. With the sale of GK8, the company reaches a $25 million settlement and resolves its most pressing issues.
Celsius ends nearly a year of litigation with this agreement
There has been bad news for Celsius over the past few months. But this time, it’s a happy occasion looming on the horizon. According to a case filed late Monday, the company reached an agreement with Series B holders to distribute $25 million.
This money comes mainly from the sale of crypto custodian GK8. As a reminder, Celsius acquired GK8 in 2021 for $115 million. But in December 2022, Digital Novogratz decided to buy the crypto custodian for an undetermined amount.
This settlement puts an end to several months of very controversial litigation, since 24 million will be used to cover the legal costs of the Series B holders. The remaining million dollars will be divided between them. It also removes one of the greatest obstacles to confirmation and emergence.
Many problems to manage at the same time
The crypto lender has a lot to deal with since the collapse of the Luna ecosystem. With the fall of Terra, the company was forced to declare bankruptcy. Last week, the Securities and Exchange Commission (SEC) filed a lawsuit against Celsius and its ex-CEO Alex Mashinsky.
According to him, they lied to investors about the financial situation of the company, manipulated the market and raised billions of dollars through fraudulent and unregistered sales of securities of crypto assets. Currently, the former CEO awaits trial behind bars. Now that the settlement is effective, the largest group of Series B shareholders is urging the court to validate it and continue the bankruptcy process.
Celsius is not yet out of the woods, but the $25 million settlement is like the calm after the storm. For now, no one knows what will happen and what the verdict will be.
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