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., which announced on October 26, 2022 that it has similarly been severely impacted by rising
Cryptocurrency
Digital Asset Collateral
By Scott Lessne on
Posted in Cryptocurrency
Secured lenders who include personal property assets as collateral in lending transaction structures have long relied upon the regularity and clarity of the Uniform Commercial Code (“UCC”) provisions which provide a roadmap for creation, perfection and enforcement of security interests in personal property. Revisions made to the UCC since 2000 have recognized and incorporated concepts…
Another Victim of the Crypto Winter
By Frederick (Rick) Hyman on
Posted in Cryptocurrency
On September 22, 2022, Compute North Holdings, Inc. and certain affiliates filed bankruptcy in the Southern District of Texas in Houston. The company describes itself as “a leader in data centers, focused on delivering sustainable, cost-effective infrastructure for customers in the blockchain, cryptocurrency mining and distributed computing space.” See Declaration of Harold Coulby, Chief Financial…
Interview with Kayvan Ghaffari of MakersPlace
By Kevin Cacabelos on
Posted in Cryptocurrency
Crowell’s Crypto Digest Blog sat down with MakersPlace’s Head of Legal and Trust and Safety, Kayvan Ghaffari, to learn about the NFT marketplace and the current legal landscape regarding NFTs.
What does it mean to be the Head of “Trust and Safety”?
Trust and safety revolve around ensuring the platform is secure and safe, and…
UK’s Competition Law Based Collective Action in the Crypto Space
By Peter Broadhurst on
Posted in Cryptocurrency
The UK has seen the launch of a competition-law based collective action – the equivalent of a class action in other countries – on behalf of an estimated 240,000 investors in the digital assets space. The claim is brought against four cryptocurrency exchanges: Binance, Bittylicious, Kraken and ShapeShift. It alleges that those exchanges colluded in…
Celsius Update
Posted in Cryptocurrency
In the short time since we last provided an update regarding the bankruptcy cases of Celsius Networks LLC and its affiliates (here), there have been a number of material developments to report.
- As ordered by the court, the debtors filed copies of all versions of Celsius’ Terms of Use that have been in
Treasury Sanctions Tornado Cash and Turns Up Heat on Mixers
By Caroline Brown, Anand Sithian & Carlton Greene on
Posted in Cryptocurrency
On August 8, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) sanctioned virtual currency mixing service Tornado Cash, which OFAC said has been used to launder billions of dollars in virtual currency, including $455 million stolen by the Lazarus Group, a Democratic People’s Republic of Korea (“DPRK”) state-sponsored hacking group…
Voyager’s Bankruptcy Case is Picking Up Steam
Posted in Cryptocurrency
There is much to report since our last update on Voyager Digital’s bankruptcy case discussed here.
- Importantly, the court set a “bar date” with respect to claims arising prior to the petition date. Proofs of claim, including those with respect to administrative claims arising under section 503(b)(9) of the Bankruptcy Code, must be actually
Celsius Networks’ Bankruptcy Case Update: It’s Still Early Days
Posted in Cryptocurrency
Now that their bankruptcy filing is a few weeks behind us, we provide below an update on certain matters of interest in the case of Celsius Networks and its affiliates. Of course, it’s still very early in the bankruptcy case — and in cryptocurrency cases in general — but we have already heard from many distressed…
Voyager Digital’s Bankruptcy Case: The First 3 Weeks
Posted in Cryptocurrency
There is heightened public interest in what may be an increasing trend of digital asset bankruptcy filings and in the resulting legal and business issues which are both novel and complex. It’s in that vein, we provide this update on Voyager Digital (as we originally discussed here ).
Voyager Digital Holdings, Inc. and two affiliates…