Earlier this month, the SDNY Bankruptcy Court answered one of the gating questions at the center of Celsius Network’s Chapter 11 bankruptcy regarding the ownership of the approximately $4.2 billion in crypto assets. Celsius account holders had been demanding the
FinTalk
FinTalk, published by Crowell & Moring LLP, focuses on legal developments and regulatory issues in financial services and related sectors. The blog covers topics such as management service organizations (MSOs) in law firms, third-party litigation funding and its regulatory frameworks in the US and UK, transparency and disclosure requirements for limited liability companies, and regulatory actions by financial authorities including FinCEN. It also addresses emerging areas like crypto-asset disputes and fintech regulatory challenges. The content includes analysis of legislative changes, compliance obligations, and enforcement actions affecting financial institutions, law firms, and investors.
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Federal Banking Regulators Start 2023 By Highlighting Crypto-Related Risks
On January 3, 2023, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (the “Federal Banking Regulators” or “Agencies”) issued a Joint Statement (“Joint Statement”) highlighting…
Treasury, IRS provide transitional guidance for broker reporting on digital assets
While legal, regulatory and tax uncertainty continues to affect financial transactions in digital assets, we are seeing incremental guidance developing on US federal taxation issues. The Infrastructure Investment and Jobs Act (Infrastructure Act), enacted in 2021, amended provisions in sections…
U.S. House Committee on Financial Services to Hold Hearing on FTX; CEO John J. Ray’s Prepared Remarks Available Online.
John J. Ray, CEO of the FTX debtors will testify tomorrow before the U.S. House Committee on Financial Services at a hearing entitled “Investigating the Collapse of FTX, Part I.” Sam Bankman-Fried, the former CEO of the FTX Group, is…
A Line in the Sand: Caymans Proceeding Ineligible for Chapter 15
Chapter 15 of the Bankruptcy Code provides a mechanism for United States cooperation and coordination with insolvency proceedings abroad, often affording foreign debtors wide-ranging relief and expansive rights through the United States Bankruptcy Court system. Not all proceedings in foreign…
FTX Contagion – BlockFi Follows FTX and Others Into Bankruptcy
BlockFi Inc. and eight of its affiliates followed the paths of crypto platforms Voyager, Celsius and FTX by filing for bankruptcy protection. The case, commenced in the District of New Jersey, on November 28, 2022, is off to a fast…
Crypto Commingling: Celsius Examiner files Initial Report
Shoba Pillay, the Examiner appointed in Celsius’ bankruptcy cases, filed her interim report on November 19, 2022. The Celsius Examiner’s report provides some important insight into a crypto-exchange’s operational and risk management failures which may provide investors and creditors some…
Legal Issues for Institutional Investors of FTX
FTX has warned its investors, customers and the crypto-world that they may have to file for bankruptcy protection without rescue financing to address its immediate liquidity crisis. Unlike the bankruptcy cases of Celsius and Voyager, FTX’s case, should it file,…
When Is an Event of Default “Continuing”?
Over a decade after Lehman’s insolvency, the English High Court handed down a key judgement in Grant v FR Acquisitions Corporation (Europe) Ltd [1] on 11 October 2022. The judgement provides commentary on when certain Events of Default have occurred and…
Celsius Contagion?: Another Crypto Miner Expected to File Bankruptcy
In an earlier post we discussed the bankruptcy filing of Compute North Holdings, Inc., a bitcoin miner felled by high electricity costs and falling cryptocurrency prices (see here). It may be followed shortly by another miner, Core Scientific, Inc.,…