Genesis Global’s Chapter 11 filing on January 20th was little surprise to those closely following the cryptocurrency markets and after its decision to “pause” withdrawals in mid-November. Digital Currency Group, Inc. (“DCG”), the parent of Genesis Global Holdco LLC (“Genesis”) and its largest borrower, is not part of the bankruptcy case and instead may
FTX Contagion – BlockFi Follows FTX and Others Into Bankruptcy
BlockFi Inc. and eight of its affiliates followed the paths of crypto platforms Voyager, Celsius and FTX by filing for bankruptcy protection. The case, commenced in the District of New Jersey, on November 28, 2022, is off to a fast start. BlockFi filed a plan of reorganization on the first day of its case. The
Crypto Commingling: Celsius Examiner files Initial Report
Shoba Pillay, the Examiner appointed in Celsius’ bankruptcy cases, filed her interim report on November 19, 2022. The Celsius Examiner’s report provides some important insight into a crypto-exchange’s operational and risk management failures which may provide investors and creditors some insight into what to expect in FTX.
The initial report provides important insight on the
Legal Issues for Institutional Investors of FTX
FTX has warned its investors, customers and the crypto-world that they may have to file for bankruptcy protection without rescue financing to address its immediate liquidity crisis. Unlike the bankruptcy cases of Celsius and Voyager, FTX’s case, should it file, will likely involve many institutional investors with secured and unsecured claims. These institutional investors
Celsius Contagion?: Another Crypto Miner Expected to File Bankruptcy
In an earlier post we discussed the bankruptcy filing of Compute North Holdings, Inc., a bitcoin miner felled by high electricity costs and falling cryptocurrency prices (see here). It may be followed shortly by another miner, Core Scientific, Inc., which announced on October 26, 2022 that it has similarly been severely impacted by rising
Another Victim of the Crypto Winter
On September 22, 2022, Compute North Holdings, Inc. and certain affiliates filed bankruptcy in the Southern District of Texas in Houston. The company describes itself as “a leader in data centers, focused on delivering sustainable, cost-effective infrastructure for customers in the blockchain, cryptocurrency mining and distributed computing space.” See Declaration of Harold Coulby, Chief Financial
Celsius Update
In the short time since we last provided an update regarding the bankruptcy cases of Celsius Networks LLC and its affiliates (here), there have been a number of material developments to report.
- As ordered by the court, the debtors filed copies of all versions of Celsius’ Terms of Use that have been in
Voyager’s Bankruptcy Case is Picking Up Steam
There is much to report since our last update on Voyager Digital’s bankruptcy case discussed here.
- Importantly, the court set a “bar date” with respect to claims arising prior to the petition date. Proofs of claim, including those with respect to administrative claims arising under section 503(b)(9) of the Bankruptcy Code, must be actually
Celsius Networks’ Bankruptcy Case Update: It’s Still Early Days
Now that their bankruptcy filing is a few weeks behind us, we provide below an update on certain matters of interest in the case of Celsius Networks and its affiliates. Of course, it’s still very early in the bankruptcy case — and in cryptocurrency cases in general — but we have already heard from many distressed
Voyager Digital’s Bankruptcy Case: The First 3 Weeks
There is heightened public interest in what may be an increasing trend of digital asset bankruptcy filings and in the resulting legal and business issues which are both novel and complex. It’s in that vein, we provide this update on Voyager Digital (as we originally discussed here ).
Voyager Digital Holdings, Inc. and two affiliates