Galaxy Digital to buy cryptocurrency platform Celsius Network

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Galaxy Digital to buy cryptocurrency platform Celsius Network

Galaxy Digital Holdings Ltd will buy Celsius Network LLC-owned digital asset custody platform GK 8, the company said on Friday.

The purchase was due to a sale process in connection with Celsius' Chapter 11 bankruptcy and is subject to court approvals and other closing conditions, the company said.

In July, Celsius filed for bankruptcy, citing extreme market conditions, and listed a $1.19 billion deficit on its balance sheet.

The deal will add more than 40 people, including cryptographers and blockchain engineers, as well as an office in Tel Aviv, Galaxy said.

The company, which was founded by Michael Novogratz, offers a wide range of financial services, including trading, asset management and investment banking.

According to a company spokeswoman, Reuters had reported in August that San Francisco-based payments company Ripple Labs Inc was interested in purchasing assets of the bankruptCryptocurrency lender Celsius Network.

The collapse of the popular terraUSD and luna token in May caused the collapse of the FTX exchange, which was shut down last month.