December 2022

Sam Bankman-Fried’s sudden turn from white knight to detainee

By Hannah Lang

(Reuters) – The sudden fall from grace and arrest of FTX’s former CEO Sam Bankman-Fried has stunned investors and crypto enthusiasts who once hailed the 30-year-old American as the savior of the industry.

Bankman-Fried was charged by the U.S. Securities and Exchange Commission (SEC) on Tuesday with defrauding investors in what regulators called “a house of cards,” hours before he was set to appear before a magistrate in the Bahamas.

The fallen crypto entrepreneur was arrested by Bahamian authorities late on Monday at the request of the U.S. government, U.S. Attorney Damian Williams said in a statement. The Bahamian attorney general said in a separate statement the United States was likely to request his extradition.

Bankman-Fried amassed billions of dollars in personal wealth running FTX, one of the world’s largest crypto exchanges that was valued earlier this year at $32 billion.

Since stepping down, Bankman-Fried has said he no longer has a role at the company. Yet he also told a Vox reporter he believed FTX’s bankruptcy filing was a mistake and has suggested on Twitter and in media interviews that he can still raise liquidity to repay customers. He did not specify how he planned to

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December 16, 2022 by ATTORNEY

How Can a Business Bankruptcy Give You Something to Be Thankful for?

The holiday season can be a stressful one for anyone. Add to that seasonal stress the worries of a business struggling with debt, and you may feel like you have nothing worth being thankful for this holiday season

If your business is buried in debt or having trouble paying bills, learn more about how business bankruptcy can give you something to feel thankful for in the coming year:Why Should You Consider Filing for Business Bankruptcy?

There are many reasons why a business may consider filing for bankruptcy. The last three years have taught the entire world to be kinder when judging the financial decisions of others. Extending some of that grace to yourself and your business during these difficult financial times is important.

Whether you are buried under a mountain of unmanageable debt or just need help to reorganize those debts to make a better plan for the future, business bankruptcy might be the answer.

Businesses that find themselves in need of financial relief have two options when it comes to bankruptcy – liquidation or reorganization. This is the primary difference between Chapter 7 business bankruptcy and Chapter 11 business bankruptcy.

Chapter 7 business bankruptcy is often

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December 15, 2022 by ATTORNEY

Former Willmar attorney sentenced for bankruptcy fraud

ST. PAUL, Minn – Gregory Anderson, a former attorney from Willmar, has been sentenced to 18 months in prison for helping a client appear unable to repay his creditors, says United States Attorney Andrew Luger. 

According to Luger’s announcement, Anderson filed a voluntary bankruptcy petition on behalf of his client, James Rothers, on Nov. 3, 2015. Anderson created fake liabilities to make it seem like Rothers was insolvent, when, in fact, he could’ve repaid his creditors with ease.

Rothers had over $1 million dollars in assets including gold coins, separate bank accounts, and uncashed checks. Rothers even paid part of Anderson’s legal fees using a concealed bank account that Anderson helped set up.

An investigation conducted by the Federal Bureau of Investigation revealed that Anderson knew about Rothers’ assets, and conspired to make him appear unable to repay his debt.

Anderson pleaded guilty to one count of fraudulent concealment of bankruptcy assets early August. He was sentenced Wednesday to 18 months in prison followed by one year of supervised release. Anderson will also be required to pay a $20,000 fine.

Rothers pleaded guilty to one count of fraudulent concealment of bankruptcy assets in November of 2019, and will be sentenced

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December 13, 2022 by ATTORNEY

Crypto meltdown a boon for U.S. bankruptcy lawyers

The value of bitcoin has dropped 65 per cent so far this year, and large law firms can rake in more than $100 million in legal fees during a long-running bankruptcy, experts say.

Publishing date:

Dec 03, 2022  •  5 days ago  •  3 minute read

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Representations of virtual cryptocurrencies are placed on U.S. dollar banknotes in this illustration taken Nov. 28.
Representations of virtual cryptocurrencies are placed on U.S. dollar banknotes in this illustration taken Nov. 28. Photo by DADO RUVIC /REUTERS

Turmoil in the cryptocurrency industry has rattled major exchanges and sent the value of digital assets tumbling, but at least one group stands to gain: bankruptcy lawyers.

High-profile bankruptcies involving crypto exchange FTX, hedge fund Three Arrows Capital and crypto lenders BlockFi, Celsius Network and Voyager Digital Ltd are generating new opportunities – and big fees – for law firms that counsel troubled companies.

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December 9, 2022 by ATTORNEY

Bankruptcy lawyers stand to benefit greatly from crypto turmoil – report

Lawyer is explaining about the wrongdoing laws regarding fraud to the client at the office.

wutwhanfoto/iStock via Getty Images

The cryptocurrency ecosystem has experienced a major downturn in the past year, sending the value of even the most prominent digital tokens plunging and triggering a slew of high-profile bankruptcies. On the flip side, law firms that council those struggling companies were said to have been raking in huge fees.

Bankruptcy lawyers, meanwhile, stand to gain from crypto exchange FTX’s recent Chapter 11 bankruptcy, which sent fresh shockwaves through the cryptoverse. Other noteworthy bankruptcies from earlier in 2022 included crypto hedge fund Three Arrows Capital and crypto lenders BlockFi, Voyager Digital (OTCPK:VYGVQ) and Celsius Network.

Generally, large law firms can collect over $100M in legal fees during a prolonged bankruptcy, Reuters reported Friday, citing experts.

For bankruptcy cases involving crypto-related firms, law firm Kirkland & Ellis is counseling BlockFi after it filed for Chapter 11 bankruptcy protection on Monday, and also represents Celsius and Voyager Digital (OTCPK:VYGVQ). The fees that Kirkland commands are some of the biggest rates in the industry, charging up to $1,995 per hour for work on the Celsius and Voyager cases, Reuters noted, citing court filings.

Previously, (Nov. 11) FTX’s Bankman-Fried resigned as CEO as crypto exchange starts Chapter 11 bankruptcy.

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December 8, 2022 by ATTORNEY
December 2022
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