Crypto powerhouse Celsius acquires Israeli startup GK8 for $ 115 million

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Israeli company, founded just three years ago, provides financial institutions with an end-to-end on-premises platform for the custody and management of digital assets

Meir Orbach 19: 3301.11.21

Israeli-American crypto firm Celsius is acquiring Israeli cybersecurity firm GK8 for $ 115 million, Calcalist has learned. GK8, which provides financial institutions with an end-to-end on-premises platform for the custody and management of digital assets, was founded just three years ago and has raised just $ 10 million to date . Celsius announced last month that it had raised $ 400 million for a valuation of $ 3 billion and some of that money is expected to go towards this deal.

GK8, founded by Lior Lamesh and Shahar Shamai, both of whom worked as cybersecurity experts in the Prime Minister’s office of Israel, sneaked out just two years ago with the completion of initial funding of $ 4 million. The round was led by Marius Nacht, co-founder of Check Point, the technology-based venture capital firm aMoon, and Discount Capital, the investment arm of Israel Discount Bank. Venture capital firms EdenBlock and iAngels, and the Israel Innovation Authority, the technology investment arm of the government, also participated in the round. One of the company’s early investors is Ronen Solomon, founder and CEO of Altshare.

GK8 founders Shahar Shamai (left) and Lior Lamesh. Photo: Osnat Krasnanski

GK8, which employs around 20 people, has developed a cybersecurity and digital asset management service and technology that allows blockchain transactions to be sent without the need for a direct internet connection. Its services are used by people like eToro. Last year, GK8 announced its collaboration with Chainalysis, the blockchain analytics company, to help financial institutions identify high-risk activities including terrorist financing, money laundering, scam, etc. Users of GK8’s custody platform had the option to integrate with Chainalysis KYT (Know Your Transaction), the compliance solution that provides real-time transaction monitoring of large volumes of crypto activity. currency to identify high risk transactions.

“We are delighted to acquire GK8,” said Daniel Leon, co-founder and COO of Celsius. “GK8’s capabilities will help Celsius and GK8 customers enter new sectors in the blockchain space while maintaining and increasing cybersecurity capabilities, while maintaining GK8’s status as an independent company. This is a milestone in the cryptosphere which is only growing and thriving. . ”

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