Bankruptcy filings from Celsius and Voyager have raised questions about what happens to investors’ funds when a crypto platform fails.
What happens to customers' funds in bankruptcy cases will depend a lot on the company's user agreement and how it used their assets, Besikof said.state that any funds deposited with the firm"may not be recoverable" in the event of bankruptcy. The firm filed for Chapter 11 protection last week, revealing a $1.2 billion hole in its balance sheet and owing users around $4.7 billion.
For its part, Voyager says it's working through a"reconciliation and fraud prevention process" with its banking partner, after which users will be able to regain access to their cash. "Investors holding crypto assets through Voyager Digital and now Celsius have been placed in a difficult position, with their accounts frozen, their lawsuits stayed and the value and timing of any recoveries unknown," Besikof said.Celsius and Voyager filed for what's known as Chapter 11, a form of bankruptcy protection that allows firms to restructure their debts. The aim is to ensure there's still a viable business by the end of the process.
"Customers will likely have to wait until the full bankruptcy process is complete before receiving remuneration, and bankruptcy usually lasts years," Palmer added."Lehman took years. Some Mt. Gox customers, for example, still haven't received any remuneration."
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
'J-Hope Isn't Limited to Bright Things': The BTS Star Breaks Down His Full-Length Solo DebutEXCLUSIVE: BTS_twt superstar JHope talks to us about JackInTheBox, getting support from his band mates, and showing off his darker side.
Les mer »
Introducing Floorprice Finance — An NFT Prediction Platform | HackerNoonDecentralized prediction market for blue-chip NFTs. Predict if the price will go up or down and win reward. CryptoPunks, BAYC and many more are available.
Les mer »
Crypto fund manager Fintonia Group secures provisional Dubai licenseSingapore's Fintonia Group, a crypto fund manager, has secured a license to operate in Dubai according to an announcement.
Les mer »