Tag: Bankruptcy

FTX Bankruptcy Team Said to Meet With Federal Prosecutors in NY – Bloomberg

John J. Ray III, who was appointed FTX’s chief executive officer last month, met this week with the US attorney’s office for the Southern District of New York. Though details of the meeting weren’t immediately available, it suggests potential overlap between the criminal investigation and bankruptcy probe, which has unearthed FTX’s chaotic corporate governance under founder and former CEO Sam…

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These Am Law 50 Law Firms Are Billing Seven-Figure Fees in Crypto Bankruptcies | Law.com

Am Law 50 firms Kirkland & Ellis, White & Case and Quinn Emanuel Urquhart & Sullivan are charging multimillion-dollar legal fees for representing parties in the Chapter 11 bankruptcies of cryptocurrency trading platforms Voyager and Celsius, with some partner hourly rates ranging as high as $2,130. As law firms gather around the recently filed bankruptcy of FTX and BlockFi, fee…

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FTX 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. As FTX’s chapter 11 case…

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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 $4 billion to remain solvent…

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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 rescue deals. They face an…

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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 and work out a restructuring…

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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 Capital recently defaulted on a…

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