Summary:
Crypto lender Celsius has reached a settlement with Series B holders to distribute $25 million from the sale of crypto custodian GK8. Under the settlement, $24 million will cover legal expenses, while $1 million will be distributed among the Series B holders. Despite some dispute over fund allocation, the largest group of Series B shareholders is urging the court to approve the settlement. Celsius filed for bankruptcy protection in July 2022 after the collapse of Terra’s ecosystem. Last week, the Securities and Exchange Commission filed a lawsuit against Celsius and its ex-CEO Alex Mashinsky, accusing them of fraudulent activities. Celsius is scheduled to appear in court today.
Key Points:
– Celsius has reached a settlement with Series B holders to distribute $25 million from the sale of GK8.
– $24 million will cover legal expenses, and $1 million will be distributed among Series B holders.
– The settlement is being urged to be approved by the court, despite disputes over fund allocation.
– Celsius filed for bankruptcy protection in July 2022.
– The Securities and Exchange Commission recently filed a lawsuit against Celsius and its ex-CEO.
Hot Take:
Despite the challenges faced by Celsius, the settlement with Series B holders provides a step forward in the bankruptcy process. However, the lawsuit filed by the Securities and Exchange Commission adds further complexity to the situation. It remains to be seen how Celsius will navigate these legal battles and emerge from bankruptcy. The outcome of the court appearance today will be highly anticipated by the crypto community.
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