Highlights From FTX CEO’s Latest Bankruptcy Filing: “A Failure of Corporate Controls”

John Ray, III, the new CEO of FTX, has filed his declaration of support in the defunct exchange’s bankruptcy proceedings.  The new executive revealed numerous details about the internal operations of FTX, and the true state of its financials. Abysmal Accounting at FTX Within the filing, Ray cited experience in legal restructuring for some of history’s largest corporate failures, including Enron and Nortel. Both companies were well-known for their financial mismanagement and fraudulent accounting practices among executives.  However, even he…

BlockFi May File for Bankruptcy after FTX Collapse

Per a recent publication from the Wall Street Journal, crypto lending platform BlockFi is set to file for bankruptcy. BlockFi's distressed tweets and recent reports credit the forthcoming move to FTX exchange's historic crash, noting “significant exposure” to the failed company.  BlockFi Halts Withdrawals In the days following the fall of Sam Bankman-Fried’s FTX Global, the crypto industry has continued to feel the aftershocks. FTX filed for Chapter 11 bankruptcy alongside 130 affiliated companies including sister firm Alameda research. According…

Mashinsky Withdrew $10 Million From Celsius Prior to Bankruptcy: Report

Alex Mashinsky – founder of Celsius Network – reportedly withdrew $10 million from the struggling lending platform weeks before its bankruptcy.  Under U.S law, he may be forced to return those funds for the benefit of his company’s creditors.  Mashinsky’s Last Minute Withdrawal Mashinsky's hefty withdrawal came in late May – at a time when Celsius users were already withdrawing their assets in droves. Fear overtook customers as crypto markets slid in Q2, and worries over Celsius’ financial health grew…

Celsius Users May Lose Their Funds Permanently, Says Economist

Even after the Celsius Network’s chapter 11 bankruptcy filing, the debacle surrounding its collapse continues to deepen. Frances Coppola, a well-known economist has asserted that the platform’s users are unlikely to recover their missing funds. Celsius a Shadow Bank? Earlier this month, the crypto lender collapsed amidst fraud allegations and liquidity problems that caused it to halt withdrawals. Later on, the network announced that it had applied for Chapter 11 bankruptcy in New York. At the time, the claim was…

Celsius Network Files for Bankruptcy a Month After Pausing Withdrawals

Celsius Network has filed for Chapter 11 bankruptcy in New York. The embattled crypto lender announced this news on July 13, noting that it voluntarily initiated the bankruptcy process. In doing so, Celsius hopes to stabilize its business and start a restructuring procedure that maximizes value for all stakeholders. Per the announcement, Celsius and some of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code. The entities filed the petitions in the US Bankruptcy…

Voyager Digital Files for Bankruptcy in New York Court

Crypto lending firm Voyager Digital has filed for bankruptcy days after suspending operations. Voyager announced yesterday, noting that it voluntarily started the Chapter 11 process to maximize value for stakeholders. According to the announcement, the firm and its subsidiaries filed reorganization petitions with the US Bankruptcy Court of the Southern District of New York. Through this filing, Voyager seeks recognition of the bankruptcy case in the Ontario Superior Court of Justice pursuant to the Companies' Creditors Arrangement Act. The company…