There is a lot going on and trying to keep up with it all is challenging. Here is your weekly run-down of what you need to know from the past week across the crypto bankruptcy industry.
FTX: Amazon said on Monday that it would invest up to $4 billion in the artificial intelligence start-up Anthropic. This may be meaningful to FTX creditors because FTX was an earlier investor in Anthropic and had been looking for buyers for its stake earlier this year. However, Bloomberg reported in late June that FTX’s investment bankers had put the sale process on hold, so FTX continues to own its stake in Anthropic and creditors could benefit from a potential increase in value resulting from Amazon’s announcement.
BlockFi: Late Monday, BlockFi announced the result of creditor voting on its proposed plan of reorganization. According to BlockFi, the proposed plan garnered widespread support from creditors in all classes that were entitled to vote on the plan. The hearing for the court to consider approval of BlockFi’s plan is scheduled to start on Tuesday, September 26th.
Celsius: Celsius also released results of creditor voting on its proposed plan on Monday. Celsius’s plan too received widespread support from creditors overall, although it did fail to garner support from several classes of creditors where there were very few votes in the class. One such creditor also recently filed an objection to court approval of the plan, asserting that it did not meet the minimum standards for approval because Celsius had failed to prove that creditors were better off under the plan than in a liquidation under Chapter 7. The bankruptcy court is set to begin the confirmation hearing on October 2nd.
Please note that the information provided here is general in nature and not a substitute for professional legal advice. The bankruptcy process can be complex, and it is recommended to consult with an attorney to understand how the specific facts of your case may impact your options as a creditor. Have a question about your claim in one of the crypto bankruptcies? Reach out to an Xclaim representative. To learn more about Xclaim and recovering value from locked crypto accounts, please visit: www.x-claim.com
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