Cryptocurrency Q&A
Can a bankrupt crypto company make a distribution in liquid cryptocurrencies?
Can a bankrupt crypto company make a distribution in liquid cryptocurrencies?
GangnamGlamourQueen
Wed Jul 17 2024
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7 answers
1350
Could you elaborate on the feasibility of a bankrupt cryptocurrency company distributing assets in the form of liquid cryptocurrencies? Would such a move be permissible under existing financial regulations? How would it impact creditors and investors? What challenges would the company potentially face in executing such a distribution? Would it be advisable for the company to pursue this route, given the volatility of cryptocurrencies? Additionally, how would the process be structured and what legal requirements would need to be met?
7 answers
DigitalTreasureHunter
Fri Jul 19 2024
Among these, the lending platform Celsius has chosen to distribute payments in liquid cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
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Andrea
Fri Jul 19 2024
This decision aligns with the nature of the cryptocurrency industry, where digital assets are the primary means of value exchange.
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GeishaCharm
Fri Jul 19 2024
However, these distribution requests are subject to approval by the Delaware bankruptcy court.
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Martino
Fri Jul 19 2024
On Wednesday, the court heard that Celsius's legal fees were escalating at a rate of $1.5 million per day as the company attempts to liquidate its assets.
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SamsungSpark
Fri Jul 19 2024
Several cryptocurrency firms facing financial difficulties have taken alternative approaches in distributing their assets.
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