The infamous Bitfinex hack is back in the public eye. Forget the Netflix show, the real drama is the actual fight over who is entitled to restitution. Account holders may have given up years ago, but they now have a chance to recover their stolen Bitcoin, though Bitfinex stands in the way. In this article for Reuters Legal News and Westlaw Today, Joseph Cioffi and his co-authors discuss the...
To be a victim or creditor, that is the question. Whether ‘tis better to remain silent and suffer the outrageous fortune of a hacked exchange receiving $6 billion in restitution as the alleged sole victim of the hack, or take arms against that sea of trouble and by opposing end the exchange’s bid for a windfall? Just as Marcellus of Hamlet knew there was something rotten in the state of Denmark,...
What do you get when you add post-election uncertainty to pre-election “economic contradictions?” Many see trouble on the way, but after a period of mixed data and projections concerning interest rates, consumer spending and borrowing, and of course, election results, the months ahead promise to bring some clarity to subprime auto. Below is a review of recent performance and anticipated events on...
In this Law360 article, Joseph Cioffi provides his thoughts on the fairness of distributing forfeited funds to preferred shareholders in the FTX bankruptcy, while creditors are arguably not being paid in full based on today’s crypto values.
Davis+Gilbert’s Subprime Auto Loan Risk Chronometer has not signaled significant market risk for some time, but new litigation has commenced that is of the type that had been anticipated and may be an indication of what is to come if the labor market deteriorates further and contributes to weaker performance. In litigation recently filed in federal court in California, a group of noteholders in a...
The recent bankruptcy filings by several major crypto platforms have given rise to unexpected realities for customers and investors. The sudden change in rights, legal exposure in bankruptcy litigation and varying outcomes in the several different proceedings can be reminiscent of a Hollywood multiverse where infinite realities are possible. Perhaps the area in which an alternate reality is most...
The benefits afforded debtors in bankruptcy are so compelling that businesses have initiated bankruptcy proceedings without experiencing insolvency or imminent financial distress. But do such businesses have the right to do so? With no express guidance under the Bankruptcy Code, and no bright line ruling from the courts, the door is open for creditors to challenge bankruptcy cases filed in these...
