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

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Episode Links

 

Adam Levitin

https://twitter.com/AdamLevitin 

 

Adam Levitin 3AC/Celsius/Voyager Content

• https://twitter.com/AdamLevitin/status/1549935271323607040

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

https://twitter.com/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

https://twitter.com/kadhim/status/1549864279536553984 

https://twitter.com/tier10k/status/1550133741158219776 (made $1m/week)

What is happening to assets in bankruptcy cases

https://twitter.com/OGLawPanda/status/1549357959746043909 

No exposure for Coinbase

https://finance.yahoo.com/news/coinbase-celsius-voyger-three-arrows-exposure-142730485.html 

KeyFi lawsuit

• https://fortune.com/2022/07/08/crypto-lender-celsius-ponzi-scheme-used-customer-funds-manipulate-token-prices-jason-stone-says-lawsuit/

3AC founders break silence

https://cryptobriefing.com/the-whole-situation-is-regrettable-3ac-breaks-silence-to-bloomberg/ 

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