Why the Messy 3AC, Celsius, and Voyager Bankruptcies Will Drag on for Years - Ep.377
Unchained
00:00
Analyzing the Complexities of Crypto Bankruptcies
This chapter explores the intricate bankruptcies of Celsius and Voyager, focusing on the influence of Three Arrows Capital on these cases. It highlights the variances in asset recoverability and the hurdles Voyager customers face in seeking potential recoveries.
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Episode notes
Two crypto law experts, WassieLawyer and Adam Levitin, analyze the bankruptcies of 3AC, Celsius, and Voyager. Show highlights:
- the difference between Voyager and Celsius “custody” and “earn” deposits
- why Celsius commingling customer custody and earn deposits could make it harder for creditors to get their money back
- what similarities and differences the Voyager and Celsius bankruptcies have
- how Chapter 11 bankruptcy works
- why Wassie and Adam believe Celsius might have engaged in shady business practices, whereas they believe Voyager was just an irresponsible lender
- what the latest is on the 3AC bankruptcy and the location of Kyle Davies and Zhu Su
- what Celsius and Voyager can clawback from 3AC
- how Alameda fits into the Voyager bankruptcy case
- whether creditors will receive funds back in crypto or dollars
- the three types of ways creditors can “claw back” funds in a bankruptcy case
- why Wassielawyer and Adam believe Celsius’ Chapter 11 plan to restructure around mining is so weird
- whether the founders from 3AC, Celsius, or Voyager will see jail time
Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021
Ava Labs: https://www.avax.network/
Episode Links
Adam Levitin
Adam Levitin 3AC/Celsius/Voyager Content
- https://www.thedeal.com/restructuring/oped-looming-legal-issues-in-cryptocurrency-bankruptcies/
- https://www.thedeal.com/restructuring/oped-crypto-winter-arrives/
- https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4107019
- https://twitter.com/AdamLevitin/status/1549142827774447619
- https://twitter.com/AdamLevitin/status/1548727063930077188
- https://twitter.com/AdamLevitin/status/1547945325125480451
- https://twitter.com/AdamLevitin/status/1547699788279193600
- https://twitter.com/AdamLevitin/status/1547584853180162049
- https://twitter.com/AdamLevitin/status/1547389680198508546
WassieLawyer
WassieLawyer 3AC/Celsius/Voyager Content
- https://twitter.com/wassielawyer/status/1543238225338454016
- https://twitter.com/wassielawyer/status/1538167831946473472
- https://twitter.com/wassielawyer/status/1545827666590601216
- https://twitter.com/wassielawyer/status/1536192639112183808
Celsius Content
- https://www.coindesk.com/policy/2022/07/19/celsius-lays-out-mining-focused-reorganization-plan-at-first-bankruptcy-hearing/
- https://twitter.com/BradyDale/status/1549415579399979008
- https://www.cnbc.com/2022/07/19/former-employees-say-issues-plagued-crypto-company-celsius-years-before-bankruptcy.html
- https://www.coindesk.com/business/2022/07/18/celsius-outlines-next-steps-as-bankruptcy-proceedings-begin/
- https://twitter.com/wassielawyer/status/1548947257961086976
- https://www.reuters.com/technology/crypto-lender-celsius-files-bankruptcy-2022-07-14/
- https://blog.celsius.network/a-memo-to-the-celsius-community-59532a06ecc6
- https://www.coindesk.com/markets/2022/07/13/wobble-in-steth-price-shows-fear-celsius-might-dump-435m-stake/
- https://www.coindesk.com/markets/2022/07/11/celsius-reclaims-172m-collateral-from-aave-compound/
- https://www.coindesk.com/markets/2022/07/13/celsius-pays-off-last-defi-loan-reclaims-nearly-200m-of-wrapped-bitcoin-from-compound/
Voyager Content
- https://unchainedpodcast.com/voyager-digital-files-for-chapter-11-bankruptcy/
- https://www.reuters.com/technology/crypto-lender-voyager-files-bankruptcy-2022-07-06/
- https://www.coindesk.com/business/2022/06/22/voyager-digital-requests-loan-repayment-from-3ac-considers-issuing-default-notice/
3AC
- https://unchainedpodcast.com/3ac-files-for-chapter-15-bankruptcy/
- https://www.theblock.co/post/157141/bankruptcy-court-judge-gives-green-light-to-serve-subpoenas-to-3ac-founders-for-discovery
- https://unchainedpodcast.com/why-possible-insolvencies-by-celsius-and-3ac-could-spell-disaster-for-crypto/
- https://unchainedpodcast.com/the-chopping-block-heres-what-was-so-bad-about-three-arrows-capital-ep-368/
- https://unchainedpodcast.com/does-venture-capital-investment-violate-the-ethos-of-crypto-sequoia-says-no-ep-367/
- https://unchainedpodcast.com/three-crypto-bankruptcies-3ac-celsius-and-voyager-what-happens-now-ep-374/
Other
- Kirkland and Ellis are running both bankruptcies
- What is happening to assets in bankruptcy cases
- No exposure for Coinbase
- KeyFi lawsuit
- 3AC founders break silence
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