Bankruptcy

In September, an independent examiner was asked by a bankruptcy court to offer an outside view of what is happening at crypto lender Celsius. The report has now been published detailing the firm’s operations in the run-up to bankruptcy being declared in July. 507 Capital Managing Partner Thomas Braziel discusses the report and what to expect from Celsius’ future bankruptcy proceedings.

Jan 31, 2023

By Nathaniel WhittemoreJan 31, 2023

An independent examiner for the U.S. bankruptcy court in New York said in a Tuesday filing that crypto lender Celsius Network misled its investors and occasionally used new customer funds to pay for other customers’ withdrawals– the usual definition of a Ponzi scheme. "The Hash" panel discusses the examiner's report and what it reveals about how Celsius operated.

Jan 31, 2023

U.S. District Judge Lewis Kaplan ruled on Monday that the identities of the two non-parental parties who co-signed Sam Bankman-Fried's $250 million bond can be made public. CoinDesk Global Policy and Regulation Managing Editor Nikhilesh De discusses the decision and what to expect from FTX's future bankruptcy proceedings.

Jan 31, 2023

Failed crypto lender BlockFi may sell some assets after a bankruptcy judge in New Jersey expressed approval of the plan as part of Chapter 11 bankruptcy proceedings designed to restore funds to creditors. Plus, the Financial Times reports that Elon Musk wants Twitter's payment system to be able to accept cryptocurrencies.

Jan 30, 2023

Bankrupt crypto lender Celsius Network secured approval to process certain customer withdrawals, several court orders filed on Tuesday show. The U.S. bankruptcy court also authorized eligible XRP holders to receive Flare tokens due under a prior agreement.

Jan 25, 2023

Bitcoin's (BTC) January price rally has analysts focusing on higher valuations last seen in mid-2022. Separately, a date has been set to begin hearing oral arguments in Grayscale Investment’s appeal of the SEC decision to deny the conversion of GBTC into an ETF. Grayscale and CoinDesk are both owned by DCG. Separately, Celsius Network is planning to reinvent itself as a new, publicly traded "recovery corporation" to exit the bankruptcy process.

Jan 24, 2023

Genesis Global Holdco LLC, the holding company of troubled cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection after being pummeled by two of 2022's biggest industry collapses. Former SEC Enforcement Branch Chief and Bragança Law Managing Partner Lisa Bragança discusses what to expect from its first bankruptcy hearing and whether Genesis' trading business is free of liability as the company's trading arm continues to move money around on blockchains, according to Nansen. Genesis and CoinDesk are both owned by Digital Currency Group (DCG).

Jan 23, 2023

Robert Leshner, founder of decentralized finance lending platform Compound Labs, compares DCG to a baseball player trying to play with one hand tied behind their back, after Genesis Global Holdco LLC filed for Chapter 11 bankruptcy. DCG is the parent company of Genesis and CoinDesk.

Jan 23, 2023

Compound Labs founder Robert Leshner discusses the potential options for Genesis' creditors, like himself, after the crypto lender filed for Chapter 11 bankruptcy and owes over $3.5 billion to its top 50 creditors. DCG is the parent company of Genesis and CoinDesk.

Jan 23, 2023