The bankrupt crypto debt platform Celsius has submitted a motion to the court to use the money from the sale of GK8 in any way it wants.
According to the filing, the shareholders of the bankrupt company will finance the legal process with most of the proceeds. The company offered to distribute 24 of the $25 million in sales revenue for legal expenses and the remaining $1 million to shareholders.
The petition states, “The main purpose of the reconciliation is to reduce administrative costs. In this regard, the borrowers have accepted the proposed distribution, which is mutually beneficial to the shareholders.” statements were included.
If the court approves the distribution of proceeds from the sale, Celsius will have to deal with major litigation costs. The sunken crypto startup had acquired Israel-based GK8 in late 2021 for $115 million. However, the company sold GK8 for a small amount after its bankruptcy.
What is Celsius?
Celsius is a cryptocurrency lending platform that offers its users high interest rates for cryptocurrencies. The company was founded in 2018 by Alex Mashinsky and Daniel Leon.
The crypto-based debt platform has been heavily impacted by the bear market that started at the end of 2021. The company faced liquidity issues that caused its users to be unable to withdraw their funds. Celsius filed for bankruptcy protection on June 13, 2022.
The inventor of the initiative, Alex Mashinsky, was detained recently.
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