News & Analysis as of

Cryptocurrency Commercial Bankruptcy Cryptoassets

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

A&O Shearman

UK Jurisdiction Taskforce Publishes Consultation on Digital Assets and Insolvency Law

A&O Shearman on

The U.K. Jurisdiction Taskforce has published a consultation relating to its proposed Legal Statement offering guidance on the application of English insolvency law principles to digital assets. The proposed Legal Statement...more

Stinson LLP

FTX Fallout: How Sponsorship Partners are Moving Forward

Stinson LLP on

Prior to its collapse, cryptocurrency exchange FTX spent millions in sponsorship dollars securing the naming and promotional rights to National Basketball Association stadiums, Formula 1 organizations, esports teams and...more

Goodwin

Bankrupt in the Metaverse

Goodwin on

Companies are pouring capital into the metaverse, often on expectations of outsized future returns. Investment in the metaverse more than doubled in 2022, and industry experts have projected that the metaverse could generate...more

Cadwalader, Wickersham & Taft LLP

Celsius Earn Depositors May Be Left Cold by Crypto Ownership Ruling

The “crypto winter” of 2022 brought a bear market and a recent wave of bankruptcies to the crypto industry, leaving some retail customers of crypto exchanges frozen out of their accounts.  As the bankruptcy filings mounted...more

Dorsey & Whitney LLP

Maybe We Should Call It Cryptic Currency?

Dorsey & Whitney LLP on

Notwithstanding that cryptocurrency is generally in the cloud, crypto purists will say that cryptocurrency is as valuable as dollar bills. However, the recent bankruptcy filings of five major crypto companies, including...more

WilmerHale

Prudential Regulators Issue New Guidance on Crypto-Assets

WilmerHale on

On January 3, the Board of Governors of the Federal Reserve (FRB), Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC) issued a Joint Statement on Crypto-Asset Risks to Banking...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

The Volkov Law Group

Bankruptcy Proceedings Reveal Shocking Lack of Controls at Disgraced Cryptocurrency Exchange FTX (IV of IV)

The Volkov Law Group on

On top of all the legal trouble for FTX’s founder and CEO, Sam Bankman-Fried (“SBF”), the company has also filed for bankruptcy and SBF has been ousted as CEO.  John J. Ray III, an attorney and bankruptcy professional, has...more

Farrell Fritz, P.C.

FTX, Sam Bankman-Fried and the Risk of Unchecked Founder Control

Farrell Fritz, P.C. on

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here”.  Such was the lament of John Ray, the legendary restructuring...more

The Volkov Law Group

The Department of Justice Charges FTX CEO Sam Bankman-Fried in the Southern District of New York (II of IV)

The Volkov Law Group on

Following FTX’s stunning collapse, federal prosecutors have quickly taken steps to hold FTX’s founder and CEO Sam Bankman-Fried (“SBF”) accountable. On December 13, the Department of Justice (“DOJ”) announced a criminal...more

The Volkov Law Group

The Fall of FTX: The Legal Ramifications of the Collapse of Sam Bankman-Fried’s Cryptocurrency Empire (I of IV)

The Volkov Law Group on

The cryptocurrency world is in shock watching the events unfold around the stunning collapse of FTX, one of the largest crypto exchanges in the world.  The exchange seemed untouchable just days before everything fell apart. ...more

Wilson Sonsini Goodrich & Rosati

SEC Disclosure Considerations Arising from Recent Developments in Crypto Asset Markets

The staff of the Division of Corporation Finance at the U.S. Securities and Exchange Commission (SEC) recently provided guidance for public companies regarding disclosures pertaining to recent developments in crypto asset...more

Sullivan & Worcester

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

Sullivan & Worcester on

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

Cadwalader, Wickersham & Taft LLP

Senator Wyden Seeks Information from Crypto Exchanges Regarding Their Financial Stability and Customer Protections in the Event of...

On November 29, U.S. Senator Ron Wyden (D-OR), Chairman of the Senate Finance Committee, sent requests for information to the CEOs of six of the largest crypto exchanges. The requests seek information about the safeguards...more

Morgan Lewis

FTX Collapse Spotlights Digital Asset Risks and Compliance Challenges

Morgan Lewis on

Bahamian regulators froze accounts belonging to FTX, one of the world’s largest centralized cryptocurrency exchanges, on November 10. Shortly thereafter, and amid large-scale customer withdrawals, the founder and chief...more

Womble Bond Dickinson

The Spectacular Fall of FTX: Considerations about Crypto Custody and Insurance

Womble Bond Dickinson on

This morning, the FTX crypto exchange (and more than 130 affiliates) filed for bankruptcy in Delaware. FTX was recently valued at $32 billion, and now it appears to be worth $0. The bankruptcy petition listed at least $10...more

Cadwalader, Wickersham & Taft LLP

The Impact of FTX’s Collapse: Insights on What Comes Next

​​​​​​​In an unwelcome reminder of the events that unfolded in the wake of the May 2022 crypto market collapse, Bahamian-based crypto exchange FTX is reportedly on the brink of collapse following an unexpected surge in...more

Troutman Pepper

Whose Crypto Is It Anyway? Bankruptcy and Crypto - The Crypto Exchange Podcast

Troutman Pepper on

In this episode of The Crypto Exchange, Troutman Pepper Partner Keith Barnett welcomes his colleague Deborah Kovsky-Apap to discuss various bankruptcy issues facing crypto exchanges, including who exactly owns the digital...more

Lowenstein Sandler LLP

Part 2: Additional Implications for Cryptocurrency Companies in Bankruptcy

Lowenstein Sandler LLP on

In the second part of a discussion of crypto bankruptcies, Andrew Behlmann and Phillip Khezri examine crypto considerations in bankruptcy plans of reorganization, including classification of claims, impairment, and...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

Nelson Mullins Riley & Scarborough LLP

Unchartered Waters: Crypto Exchange Assets in Bankruptcy

A Securities Exchange Commission disclosure filed by popular cryptocurrency exchange Coinbase has shed light on the question of what would happen if Coinbase or a similar cryptocurrency exchange ever filed for bankruptcy...more

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