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Crypto Bankruptcies

by TraderTools

A bit of peanut gallery unsolicited advice for crypto firms that are in trouble.

DO NOT file for bankruptcy, make a deal any deal even one that wipes out all equity holders etc. Bankruptcy will take years to play out, meaning customers waiting for their money will be waiting till 2025 to see a few pennies from it, reason it will be pennies because from now to 2025 lawyers from all sides will be feasting on the cash in the estate.

Times like these are a bankruptcy lawyers dream come true and on large bankruptcies like these, years of fees will rob 20% plus of the estates funds without making any logical sensical decisions. The fact that status of crypto and customer money is not really tested in courts might make this a 2028 affair.

If you think I am exaggerating look at high profile financial bankruptcies. Lehman Brothers took nearly 14 years to resolve. Refco which is more the size of Voyager/Celsius, and others, took 5 years for customers to get their money back (21 cents on the dollar for Retail FX customers). Distressed deals are always predatory been on both sides. I am an expert, take the deal and move on, your days as founders/management are over, go start fresh.

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