饾悥饾悺饾悮饾惌 饾悽饾惉 饾悅饾悺饾悮饾惄饾惌饾悶饾惈 11 饾悰饾悮饾惂饾悿饾惈饾惍饾惄饾惌饾悳饾惒??
A few weeks ago,crypto funds #CelsiusNetwork and #VoyagerDigital filed for Chapter 11 饾悰饾悮饾惂饾悿饾惈饾惍饾惄饾惌饾悳饾惒.
But what the heck is Chapter 11 饾悰饾悮饾惂饾悿饾惈饾惍饾惄饾惌饾悳饾惒???
Here's a simple primer馃憞馃憞
This Chapter of the Bankruptcy code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.
This means customer deposits will be paid back last if at all.(the sad part)
A statement from Celsius, "This decision was made with the intention to provide the best opportunity to stabilise the business,consummate a comprehensive restructuring transaction that maximises value for all stakeholders,and emerge from chapter 11 positioned for success in the crypto industry".
Celsius network had a $1.2 billion hole in its balance sheet
Voyager had massive partnership with 3 Arrows capital which had $10billion AUM
Among other companies
With the #Luna cascade aside,this was another black swan event that led to massive capitulations in #crypto.