The Crypto-Related Bankruptcies Timeline serves as an interactive compilation of select dates relating to bankruptcies of companies involved in cryptocurrency, including hedge funds, lending companies, and exchanges.  Beginning with Mt. Gox filing for Chapter 15 bankruptcy protecting in February 2014, the Timeline includes relevant information regarding crypto-related companies that filed for bankruptcy protection, as well

The Celsius Network bankruptcy cases provide another opportunity for parties to acquire their assets and/or operations. As predicted in an earlier post, the bankruptcy court issued an order in the Celsius cases, approving bidding procedures that outline the entire process and steps to be followed by anyone interested in submitting a bid.

Anyone interested in buying assets or operations from Celsius will need to follow the process outlined in the order to connect with the advisors to Celsius, sign a nondisclosure agreement (NDA), and structure a bid with the bid requirements to become a Qualified Bid* as defined in the order.  

Continue Reading Celsius Bidding Procedures Create Possible Bidding Opportunities

A host of reasons can cause bankruptcy timelines to slide—ongoing negotiations, buyers dealing with their lenders, holidays, court scheduling issues, perhaps a dearth of interested buyers, and more. These types of changes are usually more of a stew of events than they are attributable to any single ingredient.

An earlier post included a timetable for the Voyager sale process that contemplated a September 8 hearing to approve one or more sale of assets to an as-of-yet-undetermined bidder or bidders. Voyager also initially planned for a Chapter 11 plan confirmation process that would have a disclosure statement hearing on September 29.

Continue Reading Voyager—Bankruptcy Timelines Begin to Slide

Something big happened the Celsius bankruptcy case last week. The filed by the Office of The United States Trustee (“UST”), a part of the US Department of Justice, has filed a motion asking the Court to appoint an examiner in the Celsius chapter 11 case. According to the UST, an examiner is needed because of:

Voyager filed its Disclosure Statement and First Amended Plan (Plan) on Friday, August 12. A primary purpose of a Chapter 11 plan is to define how creditors’ and customers’ claims are proposed to be treated. For a business such as Voyager’s, the plan would be expected to include how customers’ claims will be treated. A disclosure statement typically describes the plan, the debtors’ history, events leading to bankruptcy, and for debtors that intend to operate after bankruptcy, includes projections of its future under the plan (along with a liquidation analysis to compare the plan with a liquidation of the debtors).

Calling Voyager’s Plan a shell is an overstatement to anyone who has ever searched for crustaceans by the seashore. It does not indicate what customers or creditors will receive. It does not indicate what Voyager’s future will or may hold, since the bidding process is still underway and there is no way to know whether there will be one or more “white knights” or if Voyager will seek to keep existing management in charge.

Continue Reading Voyager Holdings—Disclosure Statement and Plan Leave Customers and Creditors Asking “Who’s on First?”

As we’ve previously noted, customers and other creditors of Voyager Digital Holdings face a deadline to file official “proofs of claim” setting forth the amounts they assert that Voyager owes them. The deadline is 5:00 p.m. ET on October 3, 2022. Information regarding the deadline, filing requirements, and procedures is available in the bankruptcy court’s order that established the deadline.

            The court-approved proof of claim form for customers can be found here.

            Proofs of claim can be filed electronically here.

Continue Reading Voyager Bankruptcy Shows a Smorgasbord of Digital Assets

The bankruptcy court in the Voyager case issued an order authorizing that funds held in two specific accounts (FBO accounts) at Metropolitan Commercial Bank, which are administered by Voyager, are held for the benefit of and belong to Voyager’s customers. As a result of this order, the bank and Voyager may honor customer requests for withdrawals of such cash as of the date Voyager filed for bankruptcy.

Continue Reading Some Voyager Creditors May Get Cash Back that is Held at Bank

Customers and creditors of Voyager Digital Holdings face a deadline to file official “proofs of claim” setting forth the amounts they assert that Voyager owes them. The deadline is 5:00 p.m. ET on October 3, 2022. Information regarding the deadline, filing requirements, and procedures is available in the bankruptcy court’s order that established the deadline.

Continue Reading Voyager Creditors—Deadline Set for Filing Bankruptcy Proofs of Claim

The Voyager Digital Holdings bankruptcy cases, along with the Celsius Network cases, provide a unique opportunity for parties to acquire assets and/or operations of each company. The bankruptcy court approved bidding procedures in an order issued in the Voyager cases that outlines the entire process and steps to be followed by anyone interested in submitting a bid. 

In the Celsius Network case, the bankruptcy court hearing on August 8 will consider the Celsius motion to establish a very similar process that will trail Voyager’s sale process by approximately one month.

Continue Reading Voyager, Celsius, and Possible Bidding Opportunities