The rehashing of insolvency cases in the crypto space delivered negative surprises. It turns out that things can go in the other direction, too.
The crypto world has been completely rocked by its wave of bankruptcies surrounding crypto market leaders Voyager Digital, Celsius Network and FTX. But as the Chapter 11 cases come to light, it’s not all negative.
As research by muula.ch reveals, the far-advanced insolvency case of Voyager Digital, in particular, currently shows how much value there actually is in the entire empires surrounding Bitcoin, Ethereum and Co.
The processing of Voyager Digital has progressed so far that the remains of the crypto company are now being hawked. And sometimes bizarre situations arise in the process.
The U.S. intervened in Voyager Digital’s bankruptcy court in New York when the customer base of the bankrupt company was to be sold to an interested party. Specifically, Binance, the largest digital exchange for crypto in the world, who is interested in the accounts and names of Voyager Digital’s users.
The state of Texas, along with its financial regulator, raised concerns about the transparency of the buyer. They also mention negatively the financing possibilities of Binance associated with its founder, Changpeng Zhao.
In addition, all the customer data would be transferred to the Binance unit in the U.S. However, rights would also be granted to foreign Binance firms, meaning probably China, recent court documents said in this regard.
When Binance was supposed to step in to help the stumbling crypto exchange FTX, the company was waved off after its initial interest due to funding hurdles. That sent shockwaves through the entire blockchain world, as also reported by muula.ch.
But even the U.S. Securities and Exchange Commission SEC has now registered its opposition to the sale of Voyager Digital’s customer base.
Binance, for example, was providing far too little information about the protection of customer assets against theft, it said. Even U.S. national security is at stake with crypto exchanges, the U.S. government recently indicated in another statement.
Names are treasure
All of this is quite surprising. After all, because it was precisely the financial regulators who had warned consumers that much in the crypto world was built on sand and that the wind in the capital markets was likely to render all of this worthless.
But now it turns out that it’s even worth fighting for Voyager Digital’s customer base. In any case, the U.S. is not giving them up so easily.
Ultimately, all transactions can be traced on the blockchains anyway. But who specifically owns something is only known by a few key entities, such as the crypto exchanges. In this respect, the customer base, in addition to all the technical know-how, is therefore definitely a treasure.
Energy crisis limits Bitcoin
It’s not all bad with the other renowned Chapter 11 crypto case, that of Celsius Network, either. Coin holders can probably have hope of getting their funds back by around 50 to 60 percent.
The dispute over how much – let’s say, Celsius Network’s bitcoin mining business – is actually worth. It shows that while bitcoin mining is unlikely to be profitable for anyone in this current energy crisis, it is not very attractive.
However, the technology and all the equipment for crypto mining does represent considerable value away from the current crisis. That’s why it’s worth fighting for here, too.
Just at the current Bitcoin price of around 17,000 dollars per coin, the cryptocurrency Bitcoin alone comes to a value of around 340 billion dollars.
Gloating big banks
The Swiss financial world is almost completely on the sidelines of all of these developments. They are only slowly discovering digital assets, as muula.ch reported about UBS, for example.
And yes, almost gloatingly, some customer advisors of those big banks such as UBS, Credit Suisse & Co. apparently even look at crypto investors at the moment and say, gloatingly, that they had indeed warned them about the air lock, after all.
But with such groundbreaking innovations, like those within the crypto world, ‘accidents’ can also happen. And those who stand on the sidelines as mere onlookers miss out on some important learning curves.
Switzerland should strike
Swiss banks could also seek Voyager Digital’s customer list, and then would not have to start from scratch in that future business.
The buyers of such customer lists would have those pioneers of the crypto world in the bag, so to speak, who understand and drive all the pioneering work around Bitcoin, Ether & Co. right at the forefront.
And the evil voices claim that the Americans have merely brought about this current crypto crisis in order to be able to log into the digital financial world of the future easily and cheaply.