The Probuild and Virgin Australia administrations confirm that virtual meetings in external administrations are now an integral part of insolvency in a post-pandemic world. Although recent changes to the Insolvency Practice Rules (Corporations) 2016 (Cth) (IPR) provide greater flexibility, there are aspects that insolvency practitioners need to consider and Court directions may be necessary.
In the recent case of LMN v Bitflyer Holdings Inc & Ors [2022] EWHC 2954, the High Court of England and Wales made orders directed at a number of cryptocurrency exchanges requiring them to provide information in relation to misappropriated crypto assets.
FTX was the third-largest cryptocurrency exchange at one point, but came crashing down to earth in 2022 and filed for bankruptcy in the US on 11 November. The platform’s downfall has reignited the debate around the regulation of cryptocurrencies globally and in specific jurisdictions. Marc Jones considers the arguments here.
Summary of Key Uniform Commercial Code (UCC) Amendments
One of the world’s largest cryptocurrency exchanges—FTX Trading Ltd.—and many of its affiliates filed for bankruptcy earlier this month.1 While the full impact of the FTX bankruptcy is not yet clear, various responses from the executive branch and federal and state regulators indicate that, in the short term, agencies will continue to use their existing authorities to seek information about the practices of crypto market participants and to enforce existing rules to protect customers and avoid further market contagion.2 The following statements may indicate what market
曾為全球第二大加密幣交易所FTX於2022年11月11日聲請破產，旋即爆發大量投資人擠兌，據悉三星電子、淡馬錫控股等機構的投資人都成受災戶，另初估有超過50萬以上的臺灣投資人受害。
就此，金管會銀行局林志吉副局長提出三大說明。第一，金管會重申，鑑於虛擬資產交易資訊相對不透明、價格波動較大且投資風險較高，投資人無論透過境內外虛擬資產平台或私底下進行交易，都務必提高警覺，審慎判斷相關資訊真偽並評估投資風險。第二，目前除了具證券性質的虛擬通貨（STO）是證券交易法所稱的「有價證券」，應遵循證交法相關規定外，其他種類虛擬通貨或衍生的其他商品都不是金管會核准發行的金融商品。第三，FTX是在境外的加密貨幣交易平台，並非金管會核准設立或監督管理的機構，相關商品也是在境外交易，但金管會仍將持續關注後續發展，並了解國際上相關主管機關對此事的看法及處理方式。
Cryptoassets are traded on a global basis. Indeed, the markets are even more global and constant than markets in more conventional financial instruments, rivalled only perhaps by the FX markets in their reach.
Shoba Pillay, the Examiner appointed in Celsius’ bankruptcy cases, filed her interim report on November 19, 2022. The Celsius Examiner’s report provides some important insight into a crypto-exchange’s operational and risk management failures which may provide investors and creditors some insight into what to expect in FTX.
Another domino has fallen. Earlier this year, we wrote about the challenges facing the crypto industry that resulted in the bankruptcy filings of Three Arrows Capital, Celsius Network, and Voyager Digital. We noted that other crypto entities could also end up in chapter 11, and that prediction has proven correct.