September 30, 2022 | Turnarounds & Workouts | 1 minute read

Partner Mark Dendinger joined other Bracewell lawyers in providing Turnarounds & Workouts analysis on crypto companies, Voyager and Celsius, filing for bankruptcy following a recent financial crisis in the industry that investors are calling the “crypto winter.”

They noted that the filings could be the beginning of a series of bankruptcies by major cryptocurrency companies. They explained that as global financial markets worsen and investors withdraw their assets — particularly in the riskier field of cryptocurrency — more companies may be forced to seek refuge in bankruptcy. They also noted that the “crypto winter” may linger for some time as companies may continue to be plagued by liquidity issues.

For Dendinger and team, the handling of private keys of crypto wallets has become a novel issue in these bankruptcy proceedings. Private key is an important element of blockchain. It may also be the key for Voyager customers to protect themselves through the court-approved sale process that is ongoing, they explained.

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