Unchained

Why the Messy 3AC, Celsius, and Voyager Bankruptcies Will Drag on for Years - Ep.377

Jul 26, 2022

WassieLawyer, an expert in restructuring and insolvency, joins Adam Levitin, a Georgetown Law professor, to dissect the tumultuous bankruptcies of 3AC, Celsius, and Voyager. They delve into the complexities of custodial funds, revealing the risks of commingled deposits. Discussions unveil Celsius's potential shady practices versus Voyager's irresponsibility. They explore the daunting Chapter 11 process, the intricacies of creditor rights, and whether key executives might face jail time, all while navigating the chaotic crypto landscape.

01:29:04

Creator website

Episode guests

Adam Levitin

WassieLawyer

Highlights

AI Chapters

Episode notes

What Happens to the Starry Night Funds?

00:56

Is There Any Model To Reorganize On?

01:07

Intro

3min

Custodial Complexities in Crypto Bankruptcies

12min

Understanding Creditor Hierarchies in Bankruptcy

2min

Bankruptcy Unraveled: The Case of Crypto Companies

14min

Analyzing the Complexities of Crypto Bankruptcies

4min

Untangling Crypto Bankruptcies

22min

Asset Recovery in Crypto Bankruptcies

7min

Legal Labyrinths of Cryptocurrency Bankruptcies

23min

Closing Insights and Continued Engagement

2min

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