Judge Halts $44M Contract of Galaxy to Purchase Celsius Assets

A bankruptcy judge from the United States has issued a refusal to instantly authorize the contract of Galaxy Digital. In the contract, Galaxy Digital intends to purchase a sub-branch of Celsius Network in return for up to $44 million. The judge, while denying the request, demanded additional details regarding the nature and the structure of the respective deal.

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Bankruptcy Judge Refuses Instantly Approving Galaxy Digital’s Deal with Celsius Due to Insufficient Details

The bankrupt judge Martin Glenn expressed that he was blindsided because of a provision in the documents related to the sale that would shift the likely legal rights of Celsius to Galaxy. On Thursday, during a hearing, the judge directed the lawyers of Celsius to offer more details regarding the claims’ value. The claims are dealing with supposed clawbacks linked to GK8 (Celsius’ crypto sub-branch which is being bought).

Recently, Galaxy Digital Holdings Ltd won the bid for GK8’s acquisition. The respective acquisition was included in its recovery framework thus there was a requirement for regulatory approval for that. GK8 offers a safe organizational self-custody forum for digital assets. It permits consumers to execute transfers offline. It offers a provision ensuring that its consumers are protected from cyberattacks.

Galaxy Might Get Authorization to Acquire GK8 after Providing Details

Though the judge has denied giving immediate authorization, if the GK8’s acquisition gets approved by the court it will play a significant role in Galaxy Digital’s expansion. It will establish a comprehensive suite of offerings related to crypto services. The acquisition is considered to be a significant foundation stone for Galaxy’s endeavor to develop an all-in-one financial forum to deal with digital assets, as per Mike Novogratz (the CEO and founder of Galaxy).

He added that it may be kept distinct from Galaxy Digital but no compromise would be made on the functionality. According to Novogratz, they are additionally enthusiastic to be benefited from the strategic opportunities that could elevate Galaxy in a maintainable style.

In the previous year, the Celsius network obtained GK8 for nearly $115M. Following the approval, the workplace of GK8 will be inherited by Galaxy Digital along with a group of approximately forty people, taking into account blockchain engineers and cryptographers. Shahar Shamai and Lior Lamesh of GK8 will still be with the company to lead the latest custody business.