In Bloomberg Podcast Interview, Partner Ken Aulet Discusses Celsius Bankruptcy

Partner Ken Aulet was a guest on a special episode of Bloomberg Law’s “On the Merits” weekly podcast to discuss the recent wave of crypto bankruptcies.

In the March 21 episode, host David Schultz spoke to more than half a dozen of the attorneys, including Aulet, working on the Chapter 11 cases of crypto platforms Voyager, Celsius Network, BlockFi and FTX. Aulet is co-leading the Firm’s representation of the Official Committee of Unsecured Creditors in the BlockFi case.

During his interview, Aulet focused on customer privacy issues that have arisen in each major cryptocurrency bankruptcy.

A bankruptcy judge in New York ordered Celsius, one cryptocurrency debtor, to disclose personal information on tens of thousands of its customers. Aulet said it could have disastrous consequences for those customers.

“A bad actor can look at that, sort it by value and figure, ‘hey, if these people had a couple million on Celsius, maybe they’ve still got a couple million on their computer,’ and target those people for hacking,” Aulet said. “It’s a lot easier to hack into someone’s computer than it is to break into their home. You can do it from the comfort of your own home in a country far away from the United States.”