Bankrupt Celsius Network has just reached an agreement with Series B investors to distribute $25 million from the sale of cryptocurrency custodian GK8.
According to the agreement, $24 million will be used to cover legal costs, whereas the remaining $1 million will be divided among investors.
According to the document:
"The Settlement brings an end to nearly a year of highly contentious litigation and removes one of the largest obstacles to confirmation and emergence in exchange for a $25 million cash settlement from the proceeds of the GK8 sale and a mutual release of claims between the Initial Consenting Series B Preferred Holders and the Estate Parties."
The Series B investors are the largest contributors to Celsius. They have now asked the court to approve the settlement agreement and continue with the bankruptcy process.
The company acquired GK8 for $115 million back in November 2021. After filing for bankruptcy, the company went out to auction, and was won by Michael Novogratz's Galaxy Digital. Although the amount of the deal was not disclosed, the purchase was cheaper than originally for Celsius.