Notwithstanding that cryptocurrency is generally in the cloud, crypto purists will say that cryptocurrency is as valuable as dollar bills. However, the recent bankruptcy filings of five major crypto companies, including Celcius Network LLC (a lender) and FTX Trading Ltd. (an exchange), may bring to light the real nature of cryptocurrency; whether it’s an investment, […]
Read MoreTraditional avoidance actions under the Bankruptcy Code, i.e., preferences and fraudulent transfers, have laudable goals: (a) to provide equal treatment to creditors of an insolvent company and (b) to claw back otherwise unavailable assets for the benefit of creditors. It is no wonder then that the governing provisions of the Bankruptcy Code and applicable state […]
Read MoreIntroduction Bankruptcy courts are often asked to determine the state law rights of debtors and claimants alike. However, the Supreme Court in 2011 held that the non-Article III courts (i.e., bankruptcy courts) generally do not hold constitutional authority to enter final judgments on state common law claims, despite being conferred with statutory authority under 11 […]
Read MoreThe laws of preferential and fraudulent transfers under the Bankruptcy Code can often seem theoretical and formulaic. When certain boxes are checked, it appears, at first blush, that a pre-bankruptcy transfer can be avoided, regardless of any intent or surrounding circumstances. However, in Whitlock v. Lowe (In re Curtis DeBerry), Case No. 18-50335 (5th Cir. […]
Read MoreThe Eleventh Circuit recently avoided, as fraudulent transfers, certain liens pledged by subsidiaries to secure a $500 million loan made to their parent, Tousa, Inc. See Senior Transeastern Lenders v. Official Comm. of Unsecured Creditors (In re Tousa, Inc.), No. 11-11071, 2012 WL 1673910 (11th Cir. May 15, 2012). These liens were avoided as upstream transfers that, pursuant […]
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