Bitcoin Is Property And Not Cash In ‘Clawback’ Action, Bankruptcy Judge Rules
Bitcoin’s dual role as a commodity and a currency can create financial recovery disputes when a company that pays for services using bitcoin goes bankrupt. A bankruptcy court judge made a ruling on Friday in one such case, stating that the cryptocurrency is not the same as U.S. currency, but making it clear that he wanted the ruling confined to a specific legal framework, according to The Recorder, a California legal and technology newspaper. Bankruptcy Judge Dennis Montali in the Northern District of California said Friday that in the case of HashFast Technologies, a mining company that....
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A US district judge has ruled, for the purposes of a bankruptcy case in California, that bitcoins are a kind of intangible property. As reported earlier this month by CoinDesk, the US Bankruptcy Court for the Northern District of California is hearing a case filed by the bankruptcy trustee for HashFast, a bitcoin mining firm that declared bankruptcy in 2014. The trustee is suing a former promoter for HashFast, Mark Lowe, and is seeking the return of 3,000 bitcoins alleged to have been fraudulently transferred to Lowe prior to the firm's collapse. In recent weeks, both sides have submitted....
Judge orders Karpeles to US for hearing. Mark Karpeles, the former boss of Mt gox, was informed today that if he wants to avail of bankruptcy protection, he must travel to Dallas and take part in his formal deposition. Karpeles, who is French born and lives in Tokyo, had hoped that his suggestion of a video-linked deposition would be acceptable, enabling him to get an extension of his bankruptcy protection in the US. Judge Stacey Jernigan, has stated, as reported by Reuters, that this would not be acceptable to the court. Reuters today reported the Judge as saying: "If he avails himself of....
A federal judge in a New York bankruptcy court has frozen the assets of crypto hedge fund Three Arrows Capital (3AC). “A key part of this motion is to put the world on notice that it is the liquidators that are controlling the debtor’s assets at this stage.” Bankruptcy Judge Freezes 3AC’s Assets Judge Martin Glenn, a United States bankruptcy judge for the Southern District of New York, granted an emergency motion Tuesday to freeze the remaining assets of bankrupt crypto hedge fund Three Arrows Capital (3AC), CNBC reported, noting that it attended the hearing.....
A US district judge has rejected a claim by Mizuho Bank that a class action lawsuit related to its relationship with failed bitcoin exchange Mt Gox should be moved to Japan. Once the largest global bitcoin exchange, Tokyo-based Mt Gox collapsed in 2014, eventually filing for bankruptcy. Since then, the exchange, and its founder and CEO Mark Karpeles, have been embroiled in a lawsuits from customers seeking to recover millions in customer funds that remain unaccounted for. Mizuho was first named as a defendant in a class action lawsuit brought by former exchange users in March 2014 as it....
Following the bankruptcy judge approving the release of $270 million in cash deposits, the crypto firm Voyager Digital has announced that it plans to open cash withdrawals starting on Thursday, August 11. After the cash withdrawal gates are open, Voyager customers can withdraw up to $100K in cash via an automated clearing house (ACH) transfer. Voyager Digital Plans to Open the Withdrawal Gates and Limit Customers to $100K ACH Transfers on August 11 Last month, on July 1, Voyager Digital suspended trading, deposits, and withdrawals, and a week later, the company officially filed for....