The bankrupt cryptocurrency lender Celsius, its creditors, and its Series B holders have reached a settlement with regard to the distribution of $25 million in proceeds from the sale of crypto custodian GK8.
According to the filing, the settlements seek to deploy $24 million for legal expenses while allocating the rest of $1 million among the Series B holders. The court document also states that the settlement agreement was born out of the “mutual desire” to prevent costly legal disputes and an extensive confirmation process, which would lead to higher professional fees.
“The Settlement brings an end to nearly a year of highly contentious litigation and removes one of the largest obstacles to confirmation and emergence in exchange for a $25 million cash settlement from the proceeds of the GK8 sale and a mutual release of claims between the Initial Consenting Series B Preferred Holders and the Estate Parties.”