Crypto lender Celsius sells GK8 platform for $25 million - creditors walk away empty-handed

Crypto lender Celsius sells GK8 platform for $25 million - creditors walk away empty-handed

Crypto lender Celsius has found itself in a lengthy bankruptcy process after acquiring the GK8 platform less than a year ago. It has now been announced that Celsius has agreed to sell the self-custody platform. However, the selling price of $25 million is a significant loss compared to the original purchase price.

Despite the sale of the GK8 platform, creditors will not benefit from the proceeds. Instead, most of the money will be used to pay legal fees. A total of $24 million will be set aside to cover legal costs incurred in the bankruptcy process. Only $1 million will be paid out to Series B holders.

According to Celsius, the decision to promote the sale of the platform is intended to reduce administrative costs. The series B holders who originally agreed should mutually benefit from this.

In addition to selling the GK8 platform, Celsius has also started divesting other assets. According to reports, $63 million worth of crypto assets are currently being sold. These assets are offered for sale on exchanges to facilitate repayment.

Celsius’ native token, CEL, has seen a decline of over 97% since its all-time high of $7.99. The current price is $0.16, up 2.35% over the last day.

It remains to be seen how Celsius' bankruptcy proceedings will develop and what impact this will have on creditors and the crypto market.