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

Unchained

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

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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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