December 2022

Infowars host files for Chapter 11 bankruptcy
nfoWars founder Alex Jones speaks to the media outside Waterbury Superior Court during his trial on September 21, 2022 in Waterbury, Connecticut.

InfoWars founder Alex Jones speaks in Waterbury, Conn. Photo: Joe Buglewicz/Getty Images

Alex Jones filed for personal bankruptcy in Texas on Friday, according to a court filing.

Why it matters: The Chapter 11 bankruptcy filing comes after Jones and his company, Free Speech Systems, were ordered to pay almost $1.5 billion in damages for falsely claiming the Sandy Hook mass shooting was a hoax.

Driving the news: The bankruptcy filing said Jones owns between $1 million and $10 million of assets with $1 billion to $10 billion of liabilities.

  • Jones’ affiliate business Free Speech Systems is also mentioned in the lawsuit, having filed for bankruptcy in July.

What they’re saying: “Like every other cowardly move Alex Jones has made, this bankruptcy will not work,” said Chris Mattei, the attorney representing the Sandy Hook families, in a statement to Axios.

  • “The bankruptcy system does not protect anyone who engages in intentional and egregious attacks on others, as Mr. Jones did. The American judicial system will hold Alex Jones accountable, and we will never stop working to enforce the jury’s verdict.”

Zoom out: A Connecticut jury ordered Jones to pay $965 million in damages to Sandy Hook victims in a defamation

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December 7, 2022 by ATTORNEY

Infowars host Alex Jones files for personal bankruptcy

FILE - Infowars founder Alex Jones appears in court to testify during the Sandy Hook defamation damages trial at Connecticut Superior Court in Waterbury, Conn., Thursday, Sept. 22, 2022. Jones has filed for personal <a href=bankruptcy protection in Texas as he faces nearly $1.5 billion in court judgments over conspiracy theories he spread about the Sandy Hook school massacre. Jones filed for Chapter 11 bankruptcy protection in bankruptcy court in Houston on Friday, Dec. 2. (Tyler Sizemore/Hearst Connecticut Media via AP, Pool, File)” title=”FILE – Infowars founder Alex Jones appears in court to testify during the Sandy Hook defamation damages trial at Connecticut Superior Court in Waterbury, Conn., Thursday, Sept. 22, 2022. Jones has filed for personal bankruptcy protection in Texas as he faces nearly $1.5 billion in court judgments over conspiracy theories he spread about the Sandy Hook school massacre. Jones filed for Chapter 11 bankruptcy protection in bankruptcy court in Houston on Friday, Dec. 2. (Tyler Sizemore/Hearst Connecticut Media via AP, Pool, File)” loading=”lazy”/

FILE – Infowars founder Alex Jones appears in court to testify during the Sandy Hook defamation damages trial at Connecticut Superior Court in Waterbury, Conn., Thursday, Sept. 22, 2022. Jones has filed for personal bankruptcy protection in Texas as he faces nearly $1.5 billion in court judgments over conspiracy theories he spread about the Sandy Hook school massacre. Jones filed for Chapter 11 bankruptcy protection in bankruptcy court in

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December 6, 2022 by ATTORNEY

Connecticut attorneys weigh in on Alex Jones bankruptcy

Jones has been ordered to pay about $1.5 billion to the families of Sandy Hook victims.

HARTFORD, Conn. — Alex Jones, the controversial host of Infowars, filed for bankruptcy protection Friday.

He claims he’s out of money and owes creditors millions, but he’s chauffeured around by private bodyguards in big new expensive vehicles, still selling his supplements, asking his fans to donate to his legal defense fund and encouraging them to give him cryptocurrency.

“All those people who are giving him money, they are working for the plaintiffs. They’re not working for him,” said Jim Bergenn, an Attorney for Shipman & Goodwin. Prior to personal bankruptcy filing, his company, Free Speech Systems, also filed for bankruptcy in April. “For the rest of his life he can never accumulate wealth,” said Bergenn.

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In total, Jones has been ordered to pay about $1.5-billion to Sandy Hook families after being found liable for defamation for claiming the school massacre was a hoax and the victim’s families were actors. “All they want is some billion-dollar number. This is ridiculous. I don’t have two million dollars,” said Jones of his Infowars show.

And

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December 5, 2022 by ATTORNEY

Crypto meltdown a boon for bankruptcy lawyers

Dec 2 (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.

Large law firms can rake in more than $100 million in legal fees during a long-running bankruptcy, experts said.

“You’ve got to pay the gravedigger,” said Adam Levitin, a law professor at Georgetown University who specializes in bankruptcy law. “These are complicated cases with a bunch of novel issues, and it shouldn’t be surprising that they are going to require a lot of attorney involvement.”

The value of bitcoin has dropped 65% so far this year, dragging down other crypto assets and leaving investors reeling. The spectacular implosion of FTX last month sent fresh shock waves through the cryptocurrency industry.

One U.S. law firm, Kirkland & Ellis, is representing BlockFi in its bankruptcy case filed on Monday and is also lead counsel for Celsius Network and Voyager Digital, which both filed

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December 4, 2022 by ATTORNEY

Bankruptcy court told FTX and Alameda they owe BlockFi $1B, but it’s complicated

A lawyer for BlockFi told the first-day hearing of its bankruptcy proceedings that the crypto lender has $355 million stuck on FTX and that the collapsed exchange’s sister company Alameda Research has defaulted on a $680 million loan.

BlockFi filed 15 motions on Nov. 28 that were approved by the court in the first day hearing on Nov. 29, including the redaction of personal details of its 50 largest creditors and the appointment of Kroll Restructuring Administration as its claims and noticing agent — the same firm chosen by FTX for its Chapter 11 bankruptcy case.

In a message emailed to worried clients, BlockFi noted that the approved motions allow it to continue “core operations” during the restructuring process and also to continue to pay its employees and independent contractors. BlockFi estimates that its wages bill is around $5.8 million per month and that it owed around $1.5 million in wages when it filed the motion on Nov. 28.

The message to clients said that BlockFi’s “singular focus” throughout the proceedings is “maximizing value for all clients and other stakeholders.”

According to a Nov. 29 CNBC report, BlockFi’s attorney, Joshua Sussberg, also added in the hearing that BlockFi plans

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December 1, 2022 by ATTORNEY
December 2022
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