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Lawyers for Genesis and Its Creditors Are ‘Optimistic’ for a Quick Resolution to Bankruptcy Woes

Lawyers for Genesis Global told a federal bankruptcy court in New York City on Monday that they’ve been working with creditors’ representatives and the U.S. Trustee’s Office “around the clock” for the past two months in order to reach a “consensual resolution” with the embattled company’s creditors.

Genesis’ lending arm halted withdrawals on Nov. 18, 2022, after what its lawyers described as “a run on the bank” in the wake of FTX’s collapse earlier that month. Two months later, on Jan. 19, Genesis Global Holdco – the holding company of Genesis Global Capital – and two of its subsidiaries, Genesis Asia Pacific (GAP) and Genesis Global Capital (GGC), global-files-for-bankruptcy-protection/” data-ylk=”slk:filed for Chapter 11 bankruptcy protection” class=”link “filed for Chapter 11 bankruptcy protection in New York.

Genesis’ lawyers – from the New York-based law firm Cleary Gottleib – told bankruptcy court Judge Sean H. Lane at a hearing on Monday they expect to reach an agreement with the creditors by the end of the week.

“We have a timeline and an approach to get through this case as quickly as possible,” Genesis attorney Sean O’Neal told the judge. “We really want to avoid getting involved in a prolonged

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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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BlockFi lawyer tells court priority is to ‘maximize client recoveries’

In this photo illustration, the BlockFi logo seen displayed on a smartphone.

Rafael Henrique | Sopa Images | Lightrocket | Getty Images

BlockFi plans to reopen withdrawals as part of an effort to “maximize client recoveries,” the crypto lender’s lawyers said at a court hearing Tuesday, a day after the firm filed for Chapter 11 bankruptcy protection.

BlockFi’s lawyers at that hearing expressed optimism that the firm is in good position to restructure and salvage the business through the bankruptcy process.

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“We want to make sure we get people back as much of their value as quick as we can,” said Josh Sussberg, a partner at BlockFi’s legal firm Kirkland & Ellis.

BlockFi’s collapse was precipitated by exposure to Three Arrows Capital — which filed for bankruptcy protection in July — and to Alameda Research, the FTX trading arm that borrowed hundreds of millions of dollars from BlockFi. FTX had arranged a rescue plan for BlockFi, but that fell apart when FTX faced its own liquidity crisis earlier this month and rapidly sank into bankruptcy.

BlockFi loaned $671 million

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Celsius execs withdrew millions before bankruptcy, court filings show

LONDON – Top executives at Celsius Network withdrew at least US$30 million (S$43 million) of cryptocurrencies in the month before suspending customer withdrawals from the platform, according to bankruptcy court documents filed by lawyers for the crypto lender in New York late on Wednesday.

Then chief executive officer Alex Mashinsky, co-founder Daniel Leon and chief technology officer Nuke Goldstein, and entities identified in the documents as their related parties, made a series of withdrawals in May totalling more than US$30 million, these filings allege. Transactions were denominated in Bitcoin, Ether, USDC, Celsius’ own CEL token and “wrapped” Bitcoin.

Mr Mashinsky withdrew about US$10 million in cryptocurrency over the course of May, the filing shows. Mr Leon withdrew about US$7 million; net of deposits, his withdrawals amounted to about US$3.1 million, the documents show. The calculations include withdrawals by entities and people related to the executives, as designated by Celsius advisers.

Mr Goldstein withdrew around US$13 million. Lawyers for Mr Goldstein told Bloomberg that net of deposits, the withdrawals attributed to the CTO and related parties totalled about US$559,000.

A Celsius representative did not immediately respond to an e-mail seeking comment. Neither Mr Mashinsky nor Mr Leon returned multiple

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Oracle to Get New Legal Chief as Longtime Leader Daley Exits (1)

Oracle Corp. could soon have a new top lawyer as veteran general counsel Dorian Daley prepares to retire in August.

Daley notified Oracle’s board June 27 of her intention to retire next month, according to a July 1 securities filing. Oracle said Daley will “assist in the transition of her duties until her retirement becomes effective.”

Oracle and Daley didn’t respond to requests for comment about the computer technology and software company’s plans for her successor.

In June, Oracle received regulatory approval for its $28.3 billion acquisition of medical records provider Cerner Corp., while also securing a judge’s ruling nixing class action status for women suing over pay equity claims.

The company, whose chairman and chief technology officer is billionaire Larry Ellison, said in its most recent proxy statement that Daley earned nearly $11.3 million in total compensation during fiscal 2021. She has also sold off approximately $45.6 million in Oracle stock since last year, according to securities filings.

Daley’s annual pay included $875,000 in base salary, a $1 million bonus, and nearly $9.4 million in stock awards. The bonus was “in recognition” of her “significant contributions to Oracle’s legal strategy and success,” the company said in its

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