in its balance sheet. But an equally dramatic upswing in cryptocurrency prices could conceivably happen before the case – in the U.S. Bankruptcy Court for the Southern District of New York – is concluded.by Patrick Nash – a partner at Kirkland & Ellis, the law firm representing Celsius – who added that the majority of customers are expected to remain “long crypto.”
“Stakeholders may very well want to use the bankruptcy process to wait out the crypto winter and hibernate until it thaws a little bit so that they could then capture the upside of the rebound,” Indelicato said in an interview with CoinDesk.The option to take recoveries in crypto sounds like it could be a boon for Celsius account holders, but much depends on what that means in practice, said Daniel Besikof, a partner at law firm Loeb & Loeb.
Imagine a hypothetical account holder who has $1 million worth of bitcoin on the bankruptcy petition date of his or her exchange, Besikof suggested. In this example, if bitcoin goes down, recoveries on the claim will also likely go down.