The latest restructuring and insolvency updates and analysis from Morrison Foerster
November 18, 2022 - U.S. Updates and Analysis

Crypto Exchange Bankruptcies: Are Prepetition Crypto Withdrawals and DeFi Loan Repayments Avoidable Preferences?

Buying Insolvent UK Companies Post Covid: Ten Top Tips for PE Investors

Over the span of two weeks in July 2022, two of the largest retail-facing cryptocurrency platforms, Celsius and Voyager, filed for chapter 11 bankruptcy protection. Both cases were precipitated, at least in part, by a “run on the bank” in which retail customers withdrew substantial amounts of cryptocurrency from each platform. Recent reports suggest that, in the weeks and months leading up to the bankruptcy, Celsius insiders also pulled tens of millions of dollars’ worth of their own crypto assets that had been deposited on the platform.

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