Judge Approves Sale of Self-Custody Platform to Galaxy Digital in Celsius Bankruptcy

Judge Martin Glenn has approved the sale of crypto self-custody platform GK8 to Galaxy Digital as part of the bankruptcy proceedings of crypto lender Celsius Network, according to a court order issued on Tuesday.

Mike Novogratz’s crypto-focused financial services firm had won the auction for GK8 earlier in the month.

Terms of the deal were not disclosed, but Galaxy spokesman Michael Wursthorn said earlier that the price was materially less than what Celsius paid for it a year ago. Celsius acquired GK8 in November 2021 for $115 million, as reported.

Galaxy's aim with the acquisition is to expand its prime brokerage offering. Around 40 people would be joining Galaxy's team, including blockchain engineers and cryptographers.

The deal, which is subject to regulatory approval, would expand Galaxy's global footprint with a new office in Tel Aviv, Israel, according to the firm.

Following a downturn in the crypto market, Celsius filed for bankruptcy protection in July and put several of its assets up for sale.