Judge approves the sale of GK8 to Galaxy Digital

Galaxy Digital is set to finalise its acquisition of crypto self-custody platform GK8.

Mike Novogratz’s company won the auction for GK8 earlier this week.

GK8’s sale is part of the ongoing Celsius bankruptcy proceedings.

Galaxy Digital to finalise its acquisition of GK8

Judge Martin Glenn approved the sale of the crypto self-custody platform GK8 to Galaxy Digital on Tuesday, December 13th. This latest development is part of the bankruptcy proceedings of crypto lender Celsius Network. 

Galaxy Digital, the company owned by Mike Novogratz, provides crypto-focused financial services. The firm won the auction for GK8 earlier this month.

At the moment, the terms of the deal were not disclosed. However, Galaxy spokesman Michael Wursthorn revealed earlier that the price the firm is paying for GK8 is materially less than what Celsius paid for it a year ago.

Celsius acquired the crypto self-custody platform for $115 million in November 2021, at the height of the bull market. 

Celsius has been struggling in recent months, resulting in the CEO, Alex Mashinsky, stepping down from his position in September. His resignation came after Celsius filed for Chapter 11 Bankruptcy in July 2022.

Galaxy to expand its prime brokerage offering

Galaxy Digital revealed that its acquisition of GK8 would enable it to expand its prime brokerage offering. The acquisition would also see roughly 40 people from GK8 join the Galaxy Digital team, including blockchain engineers and cryptographers.

Although the judge has approved the deal, it is still subject to regulatory approval. The deal would help expand Galaxy’s global footprint with a new office in Tel Aviv, Israel, the firm added. 

Celsius put several of its assets up for sale since it filed for bankruptcy a few months ago. Last week, United States Bankruptcy Judge Martin Glenn ordered Celsius to return cryptocurrencies worth about $44 million to the lender’s custody program customers.

At the time, the judge said he wanted creditors to recover as much as they possibly could as soon as they possibly could. Celsius still owes billions of dollars to its creditors, and the sale of its assets could help settle some of the debt.