News & Analysis as of

Cryptocurrency Chapter 11

Falcon Rappaport & Berkman LLP

Understanding the Celsius Settlement Matrix: A Guide for Defendants

The Celsius Network bankruptcy case has been a significant event in the cryptocurrency world, leading to numerous legal battles and adversary proceedings. One of the critical aspects of this case is the recently proposed...more

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

New York Bankruptcy Court Authorizes Service via Non-Fungible Tokens on Cryptocurrency Wallet Owners

A recent decision by the United States Bankruptcy Court for the Southern District of New York may have significant implications for digital asset holders and users. The decision, issued on October 24, 2024, granted a motion...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

Seward & Kissel LLP

Grand Salame, Making a Statement, Many Happy Returns, and Going Yardi

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Ex-FTX Executive Salame Sentenced to 7.5 Years in Prison | Reuters - Former co-CEO of bankrupt cryptocurrency exchange FTX’s Bahamian subsidiary has been sentenced to 90 months in prison after pleading guilty in September...more

Seward & Kissel LLP

Crypto Rally, Poor Stewardship, and Ash to Ash

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Collapsed FTX says it can pay most creditors back in full | CNN Business - On Tuesday, collapsed cryptocurrency exchange FTX unveiled its reorganization plan and stated it has recovered adequate funds to pay the majority...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

Akin Gump Strauss Hauer & Feld LLP

CryptoLink - January 2024 Updates

Congress continues to plug along on crypto policy. The Senate’s attention – on a bipartisan basis – has been focused on extending Anti-Money Laundering (AML) regulatory authority to the digital assets space. This continues to...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

Morris James LLP

Claw-Back Litigation in FTX Bankruptcy FAQs

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FTX Trading Ltd. and FTX.US, together generally known as FTX, operated a successful cryptocurrency exchange. FTX was established in 2018 by Sam Bankman-Fried and, by 2021, had become the third largest cryptocurrency exchange...more

Seward & Kissel LLP

Gateway Drug? Catch 22, No & Arrow, Genesis Reaches the End, and Monster Win?

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Bankruptcy court refuses to dismiss marijuana industry debtor Chapter 11 case| Reuters - The U.S. Bankruptcy Court for the Central District of California has refused a motion to dismiss the Chapter 11 Bankruptcy case for...more

Seward & Kissel LLP

Union Jacked, Founders Keepers, Cold Comfort, and Little Appeal

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International Longshore and Warehouse Union files for bankruptcy | Reuters - The International Longshore and Warehouse Union (ILWU) has filed for a Chapter 11 bankruptcy protection to fend off long standing litigation...more

Pierce Atwood LLP

Maine Office of Securities Enforcement Update

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The Maine Office of Securities enforces Maine’s securities laws, licenses broker-dealers, broker-dealer agents, investment advisers, and investment adviser representatives, and reviews registration statements and exemption...more

Seward & Kissel LLP

ICYMI: A Brief Summary of Recent Events - May 2023

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On May 8, Bittrex Inc., once among the country’s biggest crypto trading platforms, filed a Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware. According to the filing, overseas exchange Bittrex...more

Patterson Belknap Webb & Tyler LLP

The Unique Case of Bittrex

On May 8, cryptocurrency platform Bittrex filed for chapter 11 in Delaware. Bittrex’s first day filings emphasize that, unlike many other crypto filings over the past year, this case is not a “free fall” bankruptcy. In...more

Seward & Kissel LLP

Bank Contagion Spreads, Celsius Still Sending the Wulf? Voyager Nearing End of Journey, and Info (Salary) Wars

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Crypto-friendly lender Silvergate collapses | CNBC - Silvergate, a Crypto focused lender, announced it will wind down its operations and voluntarily liquidate the bank. This announcement comes a week after Silvergate...more

Seward & Kissel LLP

Not So Silver Lining, Weird Science, F is for Fraud, and Alex Jones Under the Microscope

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Below is our initial take on recent bankruptcy-related developments: Silvergate reported a $1 billion loss for the fourth quarter and said it is unable to meet an extended March 16 deadline for submitting its annual...more

Dinsmore & Shohl LLP

Utility Companies Face Credit Risk from Bankruptcies of Crypto Miners

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From television commercials to naming rights for arenas, the topic of cryptocurrency has been hard to avoid.  While cryptocurrency may be virtual, its creation or ’mining’ occurs in the real world.  This mining poses a credit...more

Seward & Kissel LLP

Run on the Banc? Avaya Pre-Packed and Ready to Go, Celsius’ Innovative Exit, and FTX Fallout

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Judge indicates intention to dismiss J&J talc unit bankruptcy | Reuters - Bankruptcy Judge Michael Kaplan said this week that he intends to dismiss the bankruptcy case filed by Johnson & Johnson's subsidiary, LTL...more

Vinson & Elkins LLP

CFIUS Takes Notice of Crypto Company Bankruptcy Sale, Signaling Heightened CFIUS Attention to Bankruptcy-Related Transactions

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In a provocative demonstration that it scrutinizes all types of transactions, no matter their origin, the Committee on Foreign Investment in the United States (“CFIUS”) has reportedly been vetting the proposed $1 billion sale...more

Perkins Coie

FTX Finds Assets and Is Looking for More

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FTX filed its presentation to the Official Committee of Unsecured Creditors (UCC), reporting that FTX has located about $5.5 billion of cash and other liquid assets but less than $1.8 billion of digital assets identified with...more

Seward & Kissel LLP

Welcome to the Party, Pal, About to Take a Bath, Genesis of a Bankruptcy and Brazilian BK

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Party City Files for Chapter 11 Bankruptcy Protection | Reuters - Party City filed for Chapter 11 bankruptcy on Tuesday, signaling the latest retailer to seek bankruptcy protection as high inflation has affected consumer...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

Fox Rothschild LLP

Cryptocurrency Deposits Do Not Belong to Account Holders: New York Bankruptcy Holding Severs Customers’ Right and Title to Crypto...

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In a recent decision by Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York presiding over cryptocurrency Chapter 11 megacase, In re Celsius Network, LLC, et al., Case No....more

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