Celsius Network: Judge rejects bid for reconsideration of GK8 sale

By Sarah Lizee

Olympia, Wash., Jan. 27 – A motion seeking reconsideration of Celsius Network LLC’s sale of its GK8 assets to Galaxy Digital Trading LLC was denied by the U.S. Bankruptcy Court for the Southern District of New York, according to a memorandum opinion and order filed Thursday.

As previously reported, the sale of GK8, a cryptocurrency custodian bought by Celsius in 2021, had been approved by the court in mid-December. The order drew a motion for reconsideration from Daniel A. Frishberg, who claimed that bankruptcy fraud relating to insurance policies may have occurred.

The court said Thursday that the insurance arrangements of GK8 in no way call into question the propriety of the sale order.

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

The Hoboken, N.J.-based cryptocurrency lending platform filed bankruptcy on July 13, 2022 under Chapter 11 case number 22-10964.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.