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
Thank you to our sponsors!
Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021Ava 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
Read the episode transcript here