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Join the Securities Litigation and Enforcement Group on LinkedInFTX Collapses Into Bankruptcy System That Still Hasn’t Figured Out Crypto – WSJ
The U.S. bankruptcy system will hash out the largest-ever collapse of a cryptocurrency exchange through a legal process that has barely begun to answer how holders of digital currencies will fare in an insolvency. Bankruptcy courts haven’t had the chance to decide complex legal questions around crypto ownership when an exchange or lender goes bust. […]
FTX Hurtles Toward Bankruptcy With $8 Billion Hole, US Probe
The crisis engulfing Sam Bankman-Fried’s FTX.com is rapidly worsening, with the onetime crypto wunderkind warning of bankruptcy if his firm can’t secure funds to cover a shortfall of as much as $8 billion. Bankman-Fried informed investors of the gap on Wednesday, shortly before rival exchange Binance abruptly scrapped a takeover offer. He said FTX.com needed […]
Crypto Investors Got Burned by Celsius. Then They Battled Back. – WSJ
Thousands of Celsius customers are gathering on social media apps such as Telegram and Reddit to parse legal filings together, pooling funds to pay for lawyers and making YouTube summaries of developments at court hearings. Some are reading up on U.S. bankruptcy law, providing translations for non-English speakers and trying to engineer their own white-knight […]
Crypto Lender Celsius Files for Bankruptcy After Freezing Withdrawals – Bloomberg
Cryptocurrency lender Celsius Network Ltd. filed for Chapter 11 bankruptcy, the latest casualty of a $2 trillion crash that has wiped out some of the industry’s biggest names and exposed hundreds of thousands of individual investors to steep losses. Celsius, which has more than 100,000 creditors, said it took the step to stabilize its business […]
Crypto Broker Voyager Digital Files for Bankruptcy Protection – WSJ
The company said that it has initiated Chapter 11 restructuring in New York, where it is based, and will seek recognition of the case in Canada, where it is listed. The voluntary filing comes after Voyager was caught up in the problems of Three Arrows Capital Ltd., a crypto hedge fund that suffered heavy losses from multiple cryptocurrencies since May. Three Arrows […]
SEC challenges billionaire’s bankruptcy filing | Bloomberg
Samuel Wyly, the billionaire investor who filed for bankruptcy earlier this week, is trying to burn through cash with extravagant spending before his assets can be frozen in a Securities and Exchange Commission civil suit, lawyers for the agency told a judge. via SEC challenges billionaire’s bankruptcy filing | Bloomberg
Madoff trustee is dealt fresh legal setback — Reuters
In a decision on Sunday, U.S. District Judge Jed Rakoff said the trustee, Irving Picard, could not invoke federal bankruptcy law to recover money transferred outside the United States between foreign entities, citing a presumption that the law does not apply extraterritorially. via Madoff trustee is dealt fresh legal setback — Reuters
Federal judge overseeing Madoff liquidation dies — Reuters
The federal bankruptcy judge presiding over the liquidation of assets related to Bernard Madoff’s epic Ponzi scheme has died, a clerk to the U.S. Bankruptcy Court in New York said on Monday. U.S. Bankruptcy Judge Burton Lifland, 84, died on Sunday, according to the clerk, Vito Genna. Genna said he did not know the cause […]
Guest Post: Bankruptcy in Securities Class Actions: Case Outcomes, Individual Liability and Side A Protection — The D & O Diary
…The data indicate that cases involving bankrupt companies are in fact successful for plaintiffs more than are cases against solvent companies. Among cases filed since 2000, only 29% of cases involving bankrupt companies were dismissed or voluntarily dropped, compared to 46% of cases against solvent companies. The low rate of dismissal for these cases suggests that they […]
Hedge Funds Appeal “Gross Injustice” Of WaMu Ruling
Funds argue opinion “rewrote the rules for these cases retroactively — invoking a series of new legal standards.”