Celsius

Cardano

United

Galaxy

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 The bankrupt crypto lending firm Celsius has filed a motion seeking relief for the distribution of funds resulting from the sale of GK8, a self-custody platform. 
 The settlement, agreed upon by the debtors, the creditors’ committee, and the initial consenting Series B preferred holders, proposes distributing $24 million for legal expenses, with the remaining $1 million to be divided among the holders. 
 According to the court&nbsp;<a href="https://cases.stretto.com/public/x191/11749/PLEADINGS/1174907182380000000004.pdf" target="_blank" rel="noopener noreferrer nofollow">document</a>, the parties agreed to settle to avoid expensive litigation and a lengthy confirmation process, which could increase professional fees. 
 You might also like: <a href="https://crypto.news/cardano-community-concerned-over-robinhood-and-celsius-selling-ada/" rel="noopener noreferrer nofollow"> Cardano community concerned over Robinhood and Celsius selling ADA </a> 
 The filing emphasized that the settlement unlocks value for the debtors’ creditors and provides certainty for all parties involved. 
 Celsius bought GK8, a self-custody startup in Israel, for $115 million in late 2021. After it filed for bankruptcy in mid-2022, it sold GK8 as part of its restructuring plan. 
 Galaxy Digital, an investment firm led by Mike Novogratz, successfully&nbsp;<a href="https://crypto.news/galaxy-digital-holdings-to-buy-popular-custody-platform-gk8/" rel="noopener noreferrer nofollow">acquired GK8</a>&nbsp;in late 2022, along with its expert team and Tel Aviv office. 
 Celsius is facing multiple legal issues in mid-July, including a lawsuit filed by the United States Securities and Exchange Commission (SEC) on July 13. This is happening at the same time as the <a href="https://crypto.news/former-celsius-ceo-arrested-in-new-york-sec-files-lawsuit/" data-type="post" data-id="14178144" rel="noopener noreferrer nofollow">arrest</a> of its former CEO, Alex Mashinsky. 
 The SEC accuses Celsius and its co-founder and CEO of securities fraud, alleging that CEL and Celsius’ Earn product qualify as securities. 
 <figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
 <div class="wp-block-embed__wrapper"> <iframe title="Celsius Network: How Much Are We Getting Back?? (UPDATE - Fahrenheit vs BRIC)" width="1020" height="574" src="https://www.youtube.com/embed/uXKoxTWnVRU?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
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 Additionally, on the same day, the US Federal Trade Commission (FTC) imposed a $4.7 billion fine on Celsius. 
 Mashinsky pleaded not guilty to misleading customers and artificially inflating the CEL token. He was released on bail set at&nbsp;<a href="https://crypto.news/former-celsius-ceo-mashinsky-to-be-released-on-40m-bail/" rel="noopener noreferrer nofollow">$40 million</a>. 
 Read more: <a href="https://crypto.news/celsius-sells-23-5-million-of-tokens-days-after-former-ceo-was-arrest/" rel="noopener noreferrer nofollow"> Celsius sells $23.5 million of tokens days after former CEO was arrested </a> 
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Celsius bankrupt, allocates $24 million for legal expenses

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