Galaxy Digital wins bid for insolvent crypto lending company’s self-governing platform Celsius
Galaxy Digital Corporation (OTCPK:BRPHF), the crypto financial services company founded by Mike Novogratz, said on Friday win an auction to purchase the digital asset self-governing platform GK8 from Celsius Network, the crypto lending company submitted for Chapter 11 bankruptcy in July.
The agreement, of which terms are not disclosed, allows Galaxy (OTCPK:BRPHF) to use GK8’s custody solution in connection with the ongoing development of GalaxyOne, a leading brokerage service, it said.
Additionally, a team of nearly 40 people, including cryptographers and blockchain engineers, will join Galaxy, and the deal will also expand globally with the addition of an office in Tel Aviv, Israel.
Galaxy CEO Novogratz said: “Adding GK8 to our main product at this important time for our industry also shows that we are always ready to take advantage of strategic opportunities to grow. Galaxy in a sustainable way.
This move comes right after Galaxy (OTCPK:BRPHF) direct contact disclosure nearly $77 million in cash and digital assets for the now-bankrupt crypto exchange FTX. Additionally, Galaxy had another rough quarter in Q3, posting a comprehensive net loss of $68.1 million versus earnings of $517.9 million a year earlier, mainly due to unrealized losses. for investments in the main investment business.
BRPHF stock slips 4% in Friday afternoon trading session.
Earlier, (November 10) Novogratz said the FTX news was a “blow” to Cryptocurrency Industry Confidence.