Celsius Acquiring Israeli Cybersecurity Company GK8 for $115M

Cryptocurrency lender Celsius Network is acquiring Israeli cybersecurity company GK8, the company announced Monday.

• GK8 was founded by Lior Lamesh and Shahar Shamai, who have worked as cybersecurity experts at the office of the Prime Minister of Israel.

• Celsius and GK8 will now provide an enterprise-grade custody platform for banks and financial institutions offering digital asset services protection from cyber attacks.

• GK8 serves banks, financial institutions, crypto exchanges or platforms, central bank digital currency (CBDC) projects, family offices and hedge funds.

• In September, Celsius Network received a cease-and-desist order from Kentucky’s securities regulator over interest earned on certain crypto accounts. The regulator said the accounts violated securities laws and failed to disclose to customers what happens to their deposits and whether they are protected.