Lost Your Crypto Amid Chapter 11 Bankruptcy Filings? You’re Probably Not Getting It Back
Joel Telpner was quoted in the article, "Lost Your Crypto Amid Chapter 11 Bankruptcy Filings? You’re Probably Not Getting It Back," [sub. req'd] published by TechCrunch.
As Chapter 11 bankruptcy proceedings move forward for several big-name crypto companies, those who lost funds are surely hoping to get all — or at least some — of their money back. Joel comments that "secured creditors will have priority if and when assets are distributed. All other creditors stand in line after the secured creditors are first paid. If it’s a company with shareholders, then if there’s anything left, it’ll go to shareholders."
Joel went on to say that in general, there's "usually never enough assets to pay out everyone for 100 cents on the dollar. There’s usually a pro rata distribution, to recover a piece of what people are owed, but not all of what they’re owed."