Case Study

A global financial services platform serving retail and institutional clients in 183 countries realized millions of dollars in losses to their hedging strategy holdings when Bitcoin plunged from over 39% in a single day. 

The company was effectively unable to reinstate its hedging strategy since they did not possess the required fiat liquidity resulting in a "naked short" position vis-a vie its crypto lending business model. 

As the price of Bitcoin began to bounce off lows and then rise, tens of millions of dollars in value were lost. 

Their third-party money manager was found out to be an imposter, defrauding more than eight hundred Bitcoin.

The CCO was convicted of wire fraud in Britain and sentenced to a 3-year prison sentence.

Un-systemic, chaotic, and nonexistent due diligence process. 

Poor accounting functions, dismal internal controls, and lack-luster compliance functions. 

Millions in losses, mounting claims by approximately 6,300 world-wide creditors and rapidly shrinking liquidity.

Expeditiously delivered a comprehensive factual assessment that analyzed the company's current state of operations and financial position while rendering clear and actionable operating restructuring advice. 

Developed complete and extensive cash forecasts, providing guidance on operational decisions, prepared the debtor’s schedules and statement of financial affairs and creditors matrix assuring bankruptcy compliance. 

Developed and implemented an asset management and liquidity plan that assured the debtor could continue operations in chapter 11, while providing security that its fungible assets were safe. 

Provided expert testimony at several hearings on the nature of cryptocurrency, including types and values of coins, coin trading, the company’s business model and its asset holdings among other subjects. 

Worked seamlessly with legal counsel and financial advisors to the committee of unsecured creditors

A process that led to a successful plan confirmation in approximately four months. 

The company’s overall cryptocurrency holdings increasing in value, some by as much as 400%.

Preserved cryptocurrency and cash while assuring safe and regulatory compliant operations, including verifying payments to vendors, professionals, and others from the company’s liquidated assets.