A certain breed of retail investors piled their money into crypto for its anti-establishment qualities. Avoiding big banks or hidebound regulators sweetened the taste of uncanny returns. Crypto firms stoked that sentiment, pulling in investor money by promising a world of “unparalleled economic freedom,” as Celsius Network put it, or to make “crypto for all” a reality, in the words of Voyager Digital.
But now millions of crypto fans—and their money—find themselves trapped in a different kind of reality. Companies they trusted with their cryptocurrency have failed, and their assets are stuck in bankruptcy court, one of the most establishment and bureaucratic institutions in America. How much money the investors lose will be set by judges enforcing complex rules written long before the first crypto coin was minted.
Source: Celsius, Voyager Creditors Battle Bankruptcy Bureaucracy – Bloomberg