Galaxy Digital’s Purchase of GK8 and the Settlement Agreement
Mike Novogratz’s Galaxy Digital acquired self-custody platform GK8 from Celsius as part of bankruptcy proceedings. The exact details of the sale were not disclosed, but it was confirmed that the price was significantly less than what Celsius had paid for it. As a result of the sale, a settlement agreement has been reached between Celsius, its creditors, and its Series B holders.
Main Breakdowns:
- The sale of GK8 to Galaxy Digital
- The settlement agreement to distribute $25 million
- The allocation of $24 million for legal expenses
- The distribution of $1 million amongst the shareholders
- Disputes among Series B shareholders
The $25 million from the sale of GK8 will be distributed among the shareholders, with $24 million designated for legal expenses and $1 million to be divided among the group. Initially, there were objections from some Series B shareholders who argued that the allocated amount did not cover their legal expenses. Another group claimed that the $1 million distribution was unfair. However, the largest group of Series B shareholders plans to share $1 million equally with all preferred shareholders and is urging the court to approve the settlement to move forward with the bankruptcy process.
Alex Mashinsky’s Arrest and Legal Issues
Alex Mashinsky, the former CEO of Celsius, was arrested following an investigation into the company’s collapse. Additionally, Celsius is facing lawsuits from the U.S. Securities and Exchange Commission, Commodity Futures Trading Commission, and Federal Trade Commission.
Hot Take:
The sale of GK8 and the subsequent settlement agreement highlight the challenges faced by Celsius and its shareholders amidst bankruptcy proceedings. The disputes among Series B shareholders further complicate the resolution process. The arrest of the former CEO and the ongoing legal issues add another layer of complexity to the situation. It remains to be seen how the court will adjudicate the objections and whether the bankruptcy process will proceed as planned.
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