Unchained Why the Messy 3AC, Celsius, and Voyager Bankruptcies Will Drag on for Years - Ep.377
5 snips
Jul 26, 2022 WassieLawyer, an expert in restructuring and insolvency, joins Adam Levitin, a Georgetown Law professor, to dissect the tumultuous bankruptcies of 3AC, Celsius, and Voyager. They delve into the complexities of custodial funds, revealing the risks of commingled deposits. Discussions unveil Celsius's potential shady practices versus Voyager's irresponsibility. They explore the daunting Chapter 11 process, the intricacies of creditor rights, and whether key executives might face jail time, all while navigating the chaotic crypto landscape.
AI Snips
Chapters
Transcript
Episode notes
Voyager's Ambiguous Terms
- Voyager's terms were less clear than Celsius', blurring the lines between customer property and loans.
- Even if funds are considered customer property, shortfalls leave customers as unsecured creditors.
Chapter 11 Overview
- Adam Levitin provides a concise overview of the Chapter 11 bankruptcy process.
- He explains the automatic stay, bankruptcy estate, debtor in possession, and creditor claims.
Reasons for Bankruptcy
- Voyager's risky lending practices, particularly the large loan to 3AC, led to its downfall.
- Celsius also made bad decisions, but there are hints of potentially more serious misconduct.