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Novogratz’s Galaxy Digital acquires Celsius’ GK8 in bankruptcy garage sale

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Galaxy Digital Holdings, led by Mike Novogratz, has won the bid to purchase GK8, a self-custodial platform for digital assets owned by Celsius Network — pending court approvals and certain closing terms.

According to the December 2 blog Mail From GK8 and the press Release From Galaxy, if the acquisition proceeds, Galaxy will acquire the platform team of approximately 40 people as part of the deal including cryptographic engineers, blockchain engineers, and the GK8 team office in Tel Aviv.

GK8 is a self-custodial blockchain-based asset management platform that provides custody, staking, DeFi, NFT support, tokenization and trading.

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The team behind the platform claims that it can perform secure blockchain transactions offline, which greatly reduces the risk of hacking.

Celsius Acquired GK8 in 2021 for $115 million, though Galaxy did not disclose how much it offered the company.

Galaxy founder and CEO Mike Novogratz called the acquisition “a critical cornerstone in our efforts to create a full-service financial platform for digital assets.”

“The addition of the GK8 to our flagship offering at this pivotal moment for our industry also highlights our continued desire to take advantage of strategic opportunities to grow Galaxy in a sustainable way,” he added.

Galaxy intends to support GK8’s ongoing operations while leveraging its technology to develop its GalaxyOne trading platform.

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GK8’s founders, including CEO Lior Lamesh and CTO Shahar Shami, are expected to remain with the company and lead the new Galaxy guardianship business.

“Powered by Galaxy, we aim to deliver exciting new offerings to the industry that showcase a combination of best-in-class Galaxy services, GK8 encryption and security, and unparalleled R&D skills,” said Lamesh.

Related: Mike Novogratz: Bankman Fried is “fake” and they’re headed to jail

It was below zero bankruptcy procedures Since filing for Chapter 11 bankruptcy protection On July 13 he discusses plans to sell some of his assets.

In the court filing, Celsius CEO Alex Mashinsky The company indicated it could Sell ​​the Bitcoin (BTC) mined from the mining operation to help pay off at least one of its loans and provide future revenue for the company.

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During his September 15 filing with the United States Bankruptcy Court for the Southern District of New York, Celsius asked Permission to sell its stablecoin collectibles.

Galaxy Digital was recently named in a $100 million lawsuit by institutional crypto custodian service and wallet operator BitGo for dropping its plans to acquire the company.

Galaxy terminated its May 2021 agreement to acquire the company on August 15, 2022, citing breach of contract by BitGo when it allegedly failed to deliver audited financial statements by July 31, 2022.

BitGo then revealed on September 13 that it was Seeking more than $100 million in damages, accusing Galaxy of “improper disavowal” and “willful breach” of its acquisition agreement with BitGo.