Celsius Network sale of GK8 held up for reconsideration

Chicago, Dec. 29 – Celsius Network LLC’s sale of its GK8 assets to Galaxy Digital Trading LLC which had been previously approved in mid-December is now up for reconsideration at a hearing on Jan. 24, according to multiple filings with the U.S. Bankruptcy Court for the Southern District of New York.

GK8 is a cryptocurrency custodian bought by Celsius in 2021.

The total consideration under Galaxy’s bid includes assumed liabilities and a cash payment of $44 million, as previously reported.

A letter was filed with the court by Daniel A. Frishberg that bankruptcy fraud may have occurred.

Apparently, the GK8 debtors appear to hold $1.55 billion in insurance policies, according to the letter.

In a declaration, Dr. Jonathan Levy asserts that there could be at least three insurance policies associated with the debtors Celsius Network LLC and GK8.

The Hoboken, N.J.-based cryptocurrency lending platform filed bankruptcy on July 13 under Chapter 11 case number 22-10964.

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