Mike
11 July 2018; Michael Novogratz, CEO, Galaxy Digital, on the MoneyConf Stage during day two of RISE 2018 at the Hong Kong Convention and Exhibition Centre in Hong Kong. Photo by Seb Daly / RISE via Sportsfile

Galaxy wins bid for collapsed crypto lender Celsius’ GK8 unit

The crypto financial services company said on Friday that
Galaxy Digital Holdings Ltd. will buy crypto lender Celsius Network LLC-owned digital asset custody platform GK8.

Mike
11 July 2018; Michael Novogratz, CEO, Galaxy Digital, on the MoneyConf Stage during day two of RISE 2018 at the Hong Kong Convention and Exhibition Centre in Hong Kong. Photo by Seb Daly / RISE via Sportsfile

According to the company, the take over followed a sale process executed in connection with Celsius’ Chapter 11 bankruptcy and is subject to court approvals and other closing conditions.

iting extreme market conditions and listed a $1.19 billion deficit on its balance sheet, New Jersey-based Celsius filed for bankruptcy in July.

Galaxy said that the deal will include nearly 40 people, including cryptographers and blockchain engineers, as well as an office in Tel Aviv.

Founded by Michael Novogratz, the company offers a suite of financial services including trading, asset management and investment banking among others to the crypto-focused companies.

Earlier in August, it was reported that San Francisco-based blockchain payments company Ripple Labs Inc was interested in potentially purchasing assets of bankrupt crypto lender Celsius Network, as per a company spokesperson.

Representations of cryptocurrencies are seen in front of displayed FTX logo and decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration

Crypto markets were terribly affected by the collapse of the popular terraUSD and luna tokens in May, followed by the implosion of crypto exchange FTX last month.