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There is a lot going on and trying to keep up with it all is challenging. Here is your weekly run-down of what you need to know from the past week across the crypto bankruptcy industry.
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Voyager: On June 23rd, the Voyager app reopened for in-kind crypto withdrawals for the approved 30-day period, ending July 23. Creditors are encouraged to withdraw their crypto in-kind during this period. Creditors that do not transfer their crypto in-kind within the thirty-day period will receive their initial recovery in U.S. dollars, subject to market fluctuations.

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FTX: On Monday, FTX filed the Second Interim Report of John J. Ray III to the Independent Directors: The Commingling and Misuse of Customer Deposits at FTX.com with the bankruptcy court in Delaware.  While Mr. Ray notes that his current understanding is “ongoing, incomplete and subject to change,” the report asserts that “based on the Debtors’ current analysis, as of the petition date, approximately $8.7 billion in customer-deposits assets was misappropriated from the FTX.com exchange, the vast majority of which was in the form of cash and stablecoin.”  To date, FTX says it has recovered approximately $7 billion in liquid assets.

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Genesis: The on-going mediation in the case was further extended through the end of this week, subject to further potential extensions.  In addition, certain deadlines relating to the company’s sale process were extended.  Among others, the bid deadline and the auction were both moved back approximately two weeks.

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BlockFi: The very public dispute between BlockFi and the Official Committee of Unsecured Creditors continued unabated this week. On June 27th, the Creditors’ Committee objected to the extension of the exclusive period for BlockFi to propose a plan of reorganization or liquidation.  Even more notably, that was paired with a cross-motion asking the court to either appoint a chapter 11 trustee, terminate exclusivity or convert the Chapter 11 cases to Chapter 7.  The Committee also filed a motion seeking to unseal an Investigative Report in the cases.  On June 28th, BlockFi filed amended versions of its proposed plan and disclosure statement.

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Bittrex: According to Bittrex’s website, eligible users are able to login, complete any necessary requirements, and withdraw their funds.The deadline to remove withdrawable assets or file a proof of claim is midnight (EDT), August 31st, 2023.

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Celsius: On June 27th, Celsius filed its proposed disclosure statement to accompany its proposed plan of reorganization. The disclosure statement for the first time offers estimates of the percentage recoveries that different groups of creditors are likely to receive and in what forms. In an illustrative recovery estimate for a non-convenience Earn claim, it predicts about a 36% recovery in the form of liquid crypto and an estimated additional 33% recovery in the form of NewCo equity.

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Prime Trust: In a June 26 filing, Nevada’s Financial Institutions Division petitioned the Eighth Judicial District Court of Nevada for a temporary restraining order and an order appointing a receiver to Prime Trust Technologies, which would include its crypto custodian arm. Prime Trust has agreed to the receivership along with the regulator based on the “substantial deficit between its assets and liabilities.”

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Please note that the information provided here is general in nature and not a substitute for professional legal advice. The bankruptcy process can be complex, and it is recommended to consult with an attorney to understand how the specific facts of your case may impact your options as a creditor. Have a question about your claim in one of the crypto bankruptcies? Reach out to an ������ representative. To learn more about ������ and recovering value from locked crypto accounts, please visit:

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