Weekly Crypto Bankruptcy Briefing: June 14th, 2023

Weekly Crypto Bankruptcy Briefing: June 14th, 2023

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.

Voyager: The Plan Administrator of Voyager filed a status report on Wednesday morning, providing additional details regarding the timing of the first distribution to creditors. According to the report, the Voyager app is expected to be updated this week, allowing creditors to view the specifics of their distribution. Additionally, the app will reopen between June 20 and July 5, enabling creditors to withdraw their in-kind crypto. Distributions are anticipated to be made within 3-7 calendar days after a withdrawal request is made.

FTX: Judge Dorsey granted a request from certain media organizations to keep individual creditors' names confidential. Furthermore, the judge dismissed a request from Bahamian liquidators to initiate litigation in Bahamas courts concerning assets held by the U.S. FTX entities. In his ruling, Judge Dorsey emphasized that he would not defer to any other court in determining the assets belonging to the creditors in the case at hand.

Genesis: Genesis submitted a revised version of its proposed plan of reorganization during the current week, along with an initial draft of the accompanying disclosure statement. However, certain key terms, such as estimates of the percentage recoveries for creditors, remain incomplete.

BlockFi: BlockFi announced that select customers may have the opportunity to commence withdrawing their digital assets at some point during the summer. It is important to note that this option will be limited to customer balances held in BlockFi Wallet accounts, which are not subject to potential preference claims.

Bittrex: Bittrex received authorization, although not a directive, to permit customers to withdraw up to the full amount of their crypto and fiat. According to reports from Coindesk, customers will be allowed to initiate withdrawals starting from Thursday. However, there is a level of risk for customers, as Bittrex retains the right to potentially recover some of the crypto/fiat from customers if they are ultimately not entitled to full payment for their claims under a confirmed plan in the bankruptcy case.

Celsius: Celsius filed its Plan Sponsor Agreement with the winning bidder, Fahrenheit, LLC, along with the accompanying Plan Term Sheet, on June 7th. Additionally, Celsius sought court approval to cover certain fees and expenses of its backup bidder, the Blockchain Recovery Investment Consortium, and submitted the Backup Plan Sponsor Agreement in connection with this request.

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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