Celsius Network reached a $25 million deal with two large preferred shareholders, ending their litigation over claims on the company’s crypto mining business, WSJ Pro Bankruptcy reported. The settlement opens a path to ending a potentially costly fight that has been a key hurdle to its plan to transfer its bitcoin mining business to new managers and compensate customers who have digital currency trapped on the bankrupt platform. Celsius reached the settlement with WestCap Management and Canadian pension fund Caisse de depot et placement du Quebec. The settlement involves claims over the company’s U.K. affiliate, Celsius Network Ltd., and its assets including the mining business, according to a court filing Thursday by Celsius Chief Financial Officer Christopher Ferraro. The cash will come from the proceeds of a sale of a crypto services business, the court papers show. The settlement is preferable for Celsius and its customers to avoid expensive litigation that may have resulted in the preferred shareholders winning recovery of several hundred million dollars, Ferraro said in the court papers. Earlier this year, Celsius picked a group of investors led by TechCrunch co-founder Michael Arrington to run a reorganized company that will include Celsius’ mining business. Celsius customers will own nearly all of the equity in the reorganized company.
