News & Analysis as of

Chapter 11 Bankruptcy Code Cryptocurrency

Seward & Kissel LLP

Forever 22, Powder Room, and Initial Here

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Forever 21 plans nearly 200 store closures in second bankruptcy, Bloomberg News reports | Reuters - The U.S.-based operator of clothing retail chain Forever 21 is planning to shut down at least 200 additional locations as...more

Morris James LLP

Navigating Cryptocurrency Disputes in Litigation and Bankruptcy: Legal Challenges and Complexities

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The rise of cryptocurrency has introduced new complexities to both traditional litigation and bankruptcy courts. While these two legal arenas share some overlap, the treatment of cryptocurrency in each context is distinct,...more

Falcon Rappaport & Berkman LLP

Understanding Celsius Network Adversary Proceedings: An Insight into the Complexities of Bankruptcy Claims

The Celsius Network bankruptcy case is a landmark event in the cryptocurrency world, not just because of the scale of financial failure but due to the complex legal battles it has ignited against tens of thousands of consumer...more

Jones Day

Third Circuit: Bankruptcy Court Lacks Discretion to Deny Examiner Appointment Motion in Large Chapter 11 Cases

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The Bankruptcy Code provides that, in chapter 11 cases where the court does not find "cause" for the appointment of a trustee, the court "shall" appoint an examiner, upon a request from the Office of the U.S. Trustee (the...more

Jones Day

The Year In Bankruptcy: 2023

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One year ago, we wrote that 2022 would be remembered in the corporate bankruptcy world for the "crypto winter" that descended in November 2022 with the spectacular collapse of FTX Trading Ltd., Alameda Research, and...more

Troutman Pepper Locke

Not Your Keys, Not Your Coin: Bankruptcy Court Looks to Contract Law to Determine Consumer Interest-Bearing Crypto Deposits Belong...

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Throughout the latter half of 2022, filing for bankruptcy became a reality for many high-profile crypto firms. The resurgence of “crypto winter” has brought many crypto-related entities to their proverbial knees. Indeed, in...more

Nelson Mullins Riley & Scarborough LLP

Read the Fine Print – Bankruptcy Court Holds Cryptocurrency in Interest Bearing 'Earn Accounts' to be Property of the Estate

When a company files for bankruptcy protection, Section 541 of the Bankruptcy Code creates an estate comprised of "all legal and equitable interest of the debtor in property." On July 15, 2022, Celsius Network LLC filed for...more

Goodwin

Who Owns Digital Assets When a Cryptocurrency Platform Files Bankruptcy? The Terms of Use Answer the Question

Goodwin on

In a decision of first impression regarding whether certain digital assets are property of a bankrupt debtor’s estate (attached here), Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District...more

UB Greensfelder LLP

Chasing the Crypto: Why a Ruling in the Madoff Case May Significantly Expand the Universe of FTX Clawback Defendants

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While there are still many unknowns in FTX’s bankruptcy including what, exactly, happened to billions of dollars of customer deposits on the former crypto trading platform, one thing is almost certain: there will be an...more

Sullivan & Worcester

Zero Degrees Celsius: The Effects of a "Crypto Winter" and Celsius’ Bankruptcy on Crypto Customers

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Part 1 – Celsius Bankruptcy - The Celsius Network was conceptualized as an alternative to conventional banking, offering its customers return rates of up to 20% on deposits of digital assets, and providing digital...more

Husch Blackwell LLP

Another Cryptocurrency Firm Bites the Dust

Husch Blackwell LLP on

Cryptocurrency platform BlockFi Inc.—another casualty of the collapse of exchange FTX earlier this month—filed a Chapter 11 bankruptcy petition this morning in the New Jersey Bankruptcy Court (Case No. 22-1936). BlockFi joins...more

Polsinelli

Celsius Bankruptcy Case Update: November 18, 2022

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As Celsius Network LLC, et al., Case Number: 22-10964 (MG), proceeds in the Bankruptcy Court for the Southern District of New York (the “Court”), the following summarizes two important case updates as of November 18, 2022: ...more

Akerman LLP

Crypto Customers Lose Anonymity in Celsius Chapter 11

Akerman LLP on

All crypto Celsius Network, LLC customers expecting and relying on anonymity should be concerned that their crypto transactions may become public. Recently, the Bankruptcy Court in the Celsius Network LLC chapter 11 case...more

Morrison & Foerster LLP

Crypto Exchange Bankruptcies: Are Prepetition Crypto Withdrawals and DeFi Loan Repayments Avoidable Preferences?

Morrison & Foerster LLP on

Over the span of two weeks in July 2022, two of the largest retail-facing cryptocurrency platforms, Celsius and Voyager, filed for chapter 11 bankruptcy protection. Both cases were precipitated, at least in part, by a “run on...more

Lowenstein Sandler LLP

The Role of a Creditors’ Committee to Investigate, Preserve, and Pursue Causes of Action in Crypto Bankruptcies

Lowenstein Sandler LLP on

Lowenstein Sandler’s previous articles on crypto bankruptcies discussed the role of a creditors’ committee in protecting the rights of customers and confirmation issues arising in crypto cases. This article will delve deeper...more

Lowenstein Sandler LLP

Crypto Considerations in Bankruptcy Plans of Reorganization

Lowenstein Sandler’s previous article on crypto bankruptcies discussed some bankruptcy basics and the role of a creditors’ committee in protecting the rights of customers. This article will delve deeper into the...more

Nelson Mullins Riley & Scarborough LLP

Chapter 15 – A Useful Tool for Protecting and Preserving Assets in Cryptocurrency Insolvency Proceedings

In February 2022, I wrote a blog article entitled Cross-Border Bankruptcy Cases: Chapter 15 of the Bankruptcy Code and Parameters of a Discovery Tool. Since the publication of that article, there have been approximately 40...more

Proskauer Rose LLP

The Other Side of The Coin: Cryptocurrency Assets in Bankruptcy

Proskauer Rose LLP on

On July 5, 2022, cryptocurrency brokerage Voyager Digital filed for chapter 11 in the Southern District of New York Bankruptcy Court, citing a short-term “run on the bank” due to the “crypto winter” in the cryptocurrency...more

Foley & Lardner LLP

Crypto As Commodity, And The Bankruptcy Implications

Foley & Lardner LLP on

On Aug. 23, 2018, Nobuaki Kobayashi, the trustee over the estate of the troubled Mt. Gox — the hacked Japanese cryptocurrency exchange — opened an online claims submission process that would allow creditors to recoup their...more

Jones Day

The Year in Bankruptcy: 2017

Jones Day on

The initial year of the Trump administration colored much of the political, business, and financial headlines of 2017, both in the U.S. and abroad. Key administration-related developments in 2017 included U.S. withdrawal from...more

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