{"id":81844,"date":"2023-07-18T13:37:34","date_gmt":"2023-07-18T10:37:34","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=81844"},"modified":"2025-09-12T01:30:37","modified_gmt":"2025-09-11T22:30:37","slug":"celsius-to-pay-investors-25-million-from-gk8-sale","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/celsius-to-pay-investors-25-million-from-gk8-sale\/","title":{"rendered":"Celsius to pay investors $25 million from GK8 sale"},"content":{"rendered":"

The bankrupt Celsius Network reached an agreement<\/a> with Series B investors to distribute $25 million from the sale of the GK8 crypto custodian.<\/p>\n

Under the agreement, $24 million will go toward covering legal costs, and the remaining $1 million will be shared among depositors.<\/p>\n

\n

“The agreement ends a highly contentious lawsuit and removes one of the biggest hurdles to the $25 million payout from the GK8 sale, including a mutual waiver of claims,” the document says.<\/p>\n<\/blockquote>\n

Series B investors are Celsius’s largest depositors. They are now asking the court to approve the settlement and proceed with the bankruptcy process.<\/p>\n

The company acquired GK8 in November 2021 for $115 million<\/a>. After filing for insolvency, the firm was put up for auction, which was won by<\/a> Galaxy Digital of Mike Novogratz. The price of the deal was not disclosed, but the purchase cost less than Celsius had originally anticipated.<\/p>\n

In June 2022, the crypto lending platform suspended withdrawals<\/a>, trading and transfers between accounts \u2014 due to extreme market conditions.<\/p>\n

After filing for bankruptcy<\/a> in Celsius, the company reported a $1.2 billion<\/a> gap in its balance sheet. In August it became known that the company’s liabilities exceeded its assets by $2.85 billion<\/a>.<\/p>\n

In September, the platform’s head Alex Mashinsky left<\/a> the role of CEO. In early 2023, the New York Attorney General charged<\/a> him with deceiving investors “by billions of dollars.”<\/p>\n

On July 13, the U.S. Department of Justice brought seven criminal charges<\/a> against the former Celsius chief. Among them were securities fraud, manipulation of the CEL token price and deceiving investors.<\/p>\n

Later the U.S. Federal Trade Commission announced<\/a> a settlement of claims against the company. The agreement calls for the platform to pay $4.7 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"

The bankrupt Celsius Network has reached an agreement with Series B investors to distribute $25 million from the sale of the GK8 crypto custodian.<\/p>\n","protected":false},"author":1,"featured_media":81845,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,1348],"class_list":["post-81844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-celsius-network"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/81844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=81844"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/81844\/revisions"}],"predecessor-version":[{"id":81846,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/81844\/revisions\/81846"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/81845"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=81844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=81844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=81844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}