With Voyager, Celsius, FTX and now BlockFi all filing for Chapter 11 bankruptcy, 2022 has been a tough year for equity investors. As Celsius was a portfolio company on Bnk To The Future, our team has been working hard to support creditors as equity tends to get wiped out in Chapter 11 and some of our investors are now Celsius creditors as well as shareholders. We have learnt a lot about Chapter 11 and have been engaging with creditors, debtors, the Unsecured Creditor Committees (UCC) and participating in Chapter 11 auctions as well as court hearings to maximize recoveries for Chapter 11 creditors.
At Bnk To The Future we have a long history supporting portfolio companies and investors with effective recovery plans. As early investors in Kraken, in 2015 we experienced first hand utilizing their technology to support Mt. Gox creditors after the exchange shut down. In the 2016 Bitfinex hack recovery, we supported creditors with the world’s first security token that took their recovery from a low of $0.30 on the dollar to a peak of $16 for every dollar owed to creditors after their hack. We also participated in the 2019 Tether recovery. In each case we used financial innovation to support creditors.
Now with millions of creditors in our sector involved in at least one Chapter 11 case, the team at Bnk To The Future have been working very hard to bring to you a new feature right within your Bnk To The Future account, which allows you to display your Chapter 11 claims and in future releases use them as the Chapter 11 process continues.
The first initial beta feature allows you to import your claim and have it displayed conveniently within your account. As your Chapter 11 case evolves you will be able to have a voice in the major crypto Chapter 11 processes. We are starting with Celsius and will add support for Voyager, FTX and BlockFi as the cases progress. In future releases we intend to add the ability to track likely recoveries, trade your claims with other investors and invest in bidder, debtor and creditor financing.
You can test out this feature now and see your Celsius claim within your account. You can get your account ready and we will notify you as soon as we go live with Voyager, FTX and BlockFi. Get your account ready in preparation using the following guide:
This Blog will show you how to get started with your claim. Let’s get started…
Step 1: You will need to have an account with Bnk To The Future that is verified. If you do not have an account, please hit the Join Us green button on the top right corner of the website and follow all instructions.
NOTE: You must use the same name on your account as your claim. You can create an individual or organizational account.
If/when you have a verified account on Bnk To The Future, then please continue the following steps:
Step 2: Login to your Bnk To The Future account. Once you are logged in you will see the option on one of the tabs that reads – Chapter 11 Claims (see image screenshot below). Click on this link. Please note that in the future this option will have a drop down menu list where you will see Chapter 11 Claims you would like to apply for e.g. FTX, Voyager, BlockFi etc. For now, this will take you to Celsius Chapter 11 Claim.
Step 3: Read The Instructions & Supply Any Additional information if needed – this is the part where you are required to submit proof of your account balance e.g. log into your Celsius app and take a screenshot of your account balance. Hit the submit button when you have uploaded your screenshot.
NOTE: If your verified name is unique to the Chapter 11 claim we will match you up automatically with no need to provide additional evidence.
Step 4: You’ve hit the submit button – wait about 48 hours to check back in as we begin verifying your request – Our dedicated team will check everything within 48 hours. If what you have submitted has been rejected, you will see a rejection explanation on the Chapter 11 Claim page. You can then re-submit your screenshot
Whilst you wait, please check out the FAQ section as shown below.
To Learn More About The Chapter 11 Process our CEO Simon Dixon created this useful guide on Exiting Chapter 11 with a quick demo of these features at the end.
We look forward to supporting you through your Chapter 11 journey and to help make a tough situation a lot easier for you.
It’s important to note: Bnk To The Future displays your claim by finding your full name in the public schedule of asset list. If you have a unique match your request will automatically be accepted. If there are multiple matches, we will ask you for more details so that we can find the exact match.
IMPORTANT: This feature is for informational purposes only. There may be inaccuracies in the source data or the data import process. Under no circumstances is the importing of data anything more than a data import. No legal transfer of claim is being performed when the data is imported.
If you choose to connect your Chapter 11 claim information to your Bank to the Future account, you will not be agreeing or committing to vote your claim in favour of a plan of reorganization or other transaction supported by Bank to the Future or to otherwise support such a plan or transaction. Bank to the Future is not now soliciting support for any such plan or transaction from Chapter 11 creditors. Such a solicitation would only be made based on a Disclosure Statement which has been approved by the Bankruptcy Court as containing adequate information or another order of the Bankruptcy Court which expressly permits such solicitation.
