Three Crypto Bankruptcies: 3AC, Celsius and Voyager. What Happens Now?- Ep. 374

In a highly educational conversation, Wassielawyer, a lawyer specializing in restructuring and insolvency, discusses the bankruptcy and liquidation of Three Arrows Capital, plus sheds light on similar processes unfolding with Celsius and Voyager. Show highlights:

Wassielawyer’s experience as a lawyer and his professional background
what the liquidation process looks like and what drives a company to get into this situation
what the creditors of 3AC can expect from the liquidation process and who will be paid first
why he doesn’t think the liquidators breached their fiduciary duty by not exercising the Starkware token warrants
what Chapter 15 bankruptcy is and what it means for a company
whether Zhu’s and Davies’ unknown whereabouts affect the liquidation process and whether they are likely to cooperate
whether 3AC counterparties will get anything back from the credits they provided
how Chapter 11 bankruptcy differs from Chapter 15 
what Chapter 11 bankruptcy filing means for Celsius and its account holders
what are the similarities and differences between Celsius and Voyager filings
 

Thank you to our sponsors!
Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 

Ava Labs: https://www.avax.network/ 

EPISODE LINKS
Wassielawyer
Twitter: https://twitter.com/wassielawyer

3AC:
Wassielawyer’s threads: https://twitter.com/wassielawyer/status/1543238225338454016?s=20&t=kXB2gr4UCkAz5p09LD24XA
https://twitter.com/wassielawyer/status/1538167831946473472?s=20&t=kXB2gr4UCkAz5p09LD24XA

Unchained Newsletter: https://unchainedpodcast.com/3ac-files-for-chapter-15-bankruptcy/

Crypto Contagion: 
 
Court order allowing subpoenas: https://www.theblock.co/post/157141/bankruptcy-court-judge-gives-green-light-to-serve-subpoenas-to-3ac-founders-for-discovery

Previous coverage: Unchained Coverage: Why Possible Insolvencies by Celsius and 3AC Could Spell Disaster for Crypto: https://unchainedpodcast.com/why-possible-insolvencies-by-celsius-and-3ac-could-spell-disaster-for-crypto/

The Chopping Block: Here’s What Was So Bad About Three Arrows Capital: https://unchainedpodcast.com/the-chopping-block-heres-what-was-so-bad-about-three-arrows-capital-ep-368/

Does Venture Capital Investment Violate the Ethos of Crypto? Sequoia Says No: https://unchainedpodcast.com/does-venture-capital-investment-violate-the-ethos-of-crypto-sequoia-says-no-ep-367/

Voyager:
Wassielawyer’s thread: https://twitter.com/wassielawyer/status/1545827666590601216?s=20&t=kXB2gr4UCkAz5p09LD24XA

Unchained Newsletter: https://unchainedpodcast.com/voyager-digital-files-for-chapter-11-bankruptcy/

Bankruptcy: https://www.reuters.com/technology/crypto-lender-voyager-files-bankruptcy-2022-07-06/

Voyager exposure to 3AC: https://www.coindesk.com/business/2022/06/22/voyager-digital-requests-loan-repayment-from-3ac-considers-issuing-default-notice/

Celsius:
Wassielawyer’s thread: https://twitter.com/wassielawyer/status/1536192639112183808?s=20&t=kXB2gr4UCkAz5p09LD24XA

Celsius bankruptcy: https://www.reuters.com/technology/crypto-lender-celsius-files-bankruptcy-2022-07-14/

Halt of withdrawals: https://blog.celsius.network/a-memo-to-the-celsius-community-59532a06ecc6

Celsius repaying debt and claiming collateral: https://www.coindesk.com/markets/2022/07/13/wobble-in-steth-price-shows-fear-celsius-might-dump-435m-stake/
https://www.coindesk.com/markets/2022/07/11/celsius-reclaims-172m-collateral-from-aave-compound/
https://www.coindesk.com/markets/2022/07/13/celsius-pays-off-last-defi-loan-reclaims-nearly-200m-of-wrapped-bitcoin-from-compound/


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In a highly educational conversation, Wassielawyer, a lawyer specializing in restructuring and insolvency, discusses the bankruptcy and liquidation of Three Arrows Capital, plus sheds light on similar processes unfolding with Celsius and Voyager. Show highlights:

Wassielawyer’s experience as a lawyer and his professional background what the liquidation process looks like and what drives a company to get into this situation what the creditors of 3AC can expect from the liquidation process and who will be paid first why he doesn’t think the liquidators breached their fiduciary duty by not exercising the Starkware token warrants what Chapter 15 bankruptcy is and what it means for a company whether Zhu’s and Davies’ unknown whereabouts affect the liquidation process and whether they are likely to cooperate whether 3AC counterparties will get anything back from the credits they provided how Chapter 11 bankruptcy differs from Chapter 15  what Chapter 11 bankruptcy filing means for Celsius and its account holders what are the similarities and differences between Celsius and Voyager filings

 

Thank you to our sponsors!

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 

Ava Labs: https://www.avax.network/ 

EPISODE LINKS

Wassielawyer

Twitter: https://twitter.com/wassielawyer

3AC:

Wassielawyer’s threads: https://twitter.com/wassielawyer/status/1543238225338454016?s=20&t=kXB2gr4UCkAz5p09LD24XA https://twitter.com/wassielawyer/status/1538167831946473472?s=20&t=kXB2gr4UCkAz5p09LD24XA Unchained Newsletter: https://unchainedpodcast.com/3ac-files-for-chapter-15-bankruptcy/
Crypto Contagion:    Court order allowing subpoenas: https://www.theblock.co/post/157141/bankruptcy-court-judge-gives-green-light-to-serve-subpoenas-to-3ac-founders-for-discovery
Previous coverage: Unchained Coverage: Why Possible Insolvencies by Celsius and 3AC Could Spell Disaster for Crypto: https://unchainedpodcast.com/why-possible-insolvencies-by-celsius-and-3ac-could-spell-disaster-for-crypto/
The Chopping Block: Here’s What Was So Bad About Three Arrows Capital: https://unchainedpodcast.com/the-chopping-block-heres-what-was-so-bad-about-three-arrows-capital-ep-368/
Does Venture Capital Investment Violate the Ethos of Crypto? Sequoia Says No: https://unchainedpodcast.com/does-venture-capital-investment-violate-the-ethos-of-crypto-sequoia-says-no-ep-367/

Voyager:

Wassielawyer’s thread: https://twitter.com/wassielawyer/status/1545827666590601216?s=20&t=kXB2gr4UCkAz5p09LD24XA
Unchained Newsletter: https://unchainedpodcast.com/voyager-digital-files-for-chapter-11-bankruptcy/
Bankruptcy: https://www.reuters.com/technology/crypto-lender-voyager-files-bankruptcy-2022-07-06/
Voyager exposure to 3AC: https://www.coindesk.com/business/2022/06/22/voyager-digital-requests-loan-repayment-from-3ac-considers-issuing-default-notice/

Celsius:

Wassielawyer’s thread: https://twitter.com/wassielawyer/status/1536192639112183808?s=20&t=kXB2gr4UCkAz5p09LD24XA
Celsius bankruptcy: https://www.reuters.com/technology/crypto-lender-celsius-files-bankruptcy-2022-07-14/
Halt of withdrawals: https://blog.celsius.network/a-memo-to-the-celsius-community-59532a06ecc6
Celsius repaying debt and claiming collateral: https://www.coindesk.com/markets/2022/07/13/wobble-in-steth-price-shows-fear-celsius-might-dump-435m-stake/ https://www.coindesk.com/markets/2022/07/11/celsius-reclaims-172m-collateral-from-aave-compound/ https://www.coindesk.com/markets/2022/07/13/celsius-pays-off-last-defi-loan-reclaims-nearly-200m-of-wrapped-bitcoin-from-compound/

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