Celsius Network, a prominent crypto lender currently undergoing Chapter 11 proceedings, has received the green light from the bankruptcy court to finalize an agreement that will bring an end to one of its most protracted legal disputes.

The lawsuit, filed by the lender’s preferred shareholders during its bankruptcy case, is now set to be settled.

According to a report by Bloomberg, Judge Martin Glen of the U.S. Bankruptcy Court for the Southern District of New York has sanctioned Celsius’ proposed settlement, which entails a payment of $25 million to the owners of its preferred stock.

During the court hearing earlier today, Christopher S. Koenig, the company’s attorney, emphasized that prolonging the legal battle would have resulted in substantial legal expenses for the bankrupt crypto lender. Koenig further revealed that, if unsuccessful, Celsius could have faced a potential liability of up to $600 million to its preferred shareholders.

The resolution of this legal dispute comes after more than nine months since the preferred shareholders initially filed their lawsuit against the crypto lender. Their objective was to secure the recovery of their investments and assert their right to the proceeds from the sale of assets. At the time, the shareholders expressed their concerns that the Chapter 11 proceedings were disproportionately focused on retail customers, neglecting the interests of the original investors.

As part of the settlement agreement, equity investors who wish to pursue further claims against the Celsius Network will have the opportunity to engage in litigation within the framework of the bankruptcy court. The $25 million payment is expected to be sourced from one of Celsius’ crypto service businesses. Following the announcement of the settlement deal, the value of Celsius’ native token, CEL, experienced a notable surge, jumping more than 14%.