Popular crypto company files for Chapter 15 bankruptcy as Bitcoin crashes

[humble3d]

Popular crypto company files for Chapter 15 bankruptcy as Bitcoin crashes

The cryptocurrency market crash took a drastic turn as the total market cap dropped to $3.13 trillion on Nov. 20.

Bitcoin (BTC) crashed below the $87,000 price mark, down 2.45% in the last 24 hours.

Related: Veteran trader who called 2018 Bitcoin collapse now predicts 35% crash

Within the last 24 hours, more than $370 million in BTC positions have been wiped out. Overall, crypto positions worth more than $900 million have been liquidated.

<code> https://www.coinglass.com/LiquidationData" rel="nofollow noopener" target="_blank" data-ylk="slk:Source: CoinGlass;elm:context_link;itc:0;sec:content-canvas" class="link ">Source: CoinGlass</code>

Source: CoinGlass

<code>https://www.coinglass.com/</code>

The shocking market crash has led to the entire crypto holdings of several long-term whales and small retail traders getting wiped out.

As reported earlier, the decentralized application (dApp) analytics platform, DappRadar, decided to wind down as running a large organization has become "financially unsustainable" in the "current environment."

Now, another crypto company has filed for Chapter 15 bankruptcy in the U.S.
More News:

    New warning says quantum tech may crack Bitcoin by 2040

    Analyst warns Bitcoin could drop to $10K, as price crashes to $86K

    New strategic Bitcoin reserve bill introduced in Congress

Crypto company files for Chapter 15 bankruptcy

Rental Coins, a collapsed Brazilian crypto company, has filed for Chapter 15 bankruptcy in the U.S. to help it recover assets, Bloomberg Law recently reported.

Chapter 15 is designed for cross-border insolvency cases, allowing foreign companies undergoing bankruptcy proceedings abroad to protect their U.S.-based assets.

Rental Coins filed a petition for relief in the U.S. Bankruptcy Court for the Southern District of Florida by a Brazilian court-appointed judicial administrator on Nov. 18.

The Rental Coins estate aims to trace crypto transactions and recover assets lost in a large-scale pyramid-style fraud in the U.S.

The crypto company operated an investment program offering high returns. But authorities in Brazil accused the platform of running a fraudulent investment scheme and mismanaging customer funds. A former manager at Rental Coins is already serving a prison sentence for his role in the crypto fraud.

The estate said it decided to file for Chapter 15 bankruptcy in a U.S. court so that it can protect remaining assets and ensure an orderly restructuring under the court supervision.

This story was originally reported by TheStreet on Nov 20, 2025, where it first appeared in the Bankruptcy News & Analysis section. 

Crypto plunge wipes out nearly $400 billion in a week

<code>https://www.axios.com/2025/11/21/bitcoin-value-price-crypto-coin-sell-off</code>

Bitcoin has shed almost $800 billion since its October peak. What's behind the plunge?

<code>https://www.cbsnews.com/news/bitcoin-btc-price-decline/</code>

MORE:

<code>https://www.thestreet.com/crypto/bankruptcy/popular-crypto-company-files-for-chapter-15-bankruptcy-as-bitcoin-crashes</code>

https://news.bloomberglaw.com/business-and-practice/brazilian-crypto-firm-seeks-us-bankruptcy-relief-following-fraud

Bitcoin’s earliest billionaire empties entire portfolio after market crash

<code>https://www.thestreet.com/crypto/markets/bitcoins-earliest-billionaire-empties-entire-portfolio-after-market-crash</code>

The AI bubble’s shaky math

https://www.arabnews.com/node/2623446

RELATED:

The Big Short <2015>

In 2006-2007 a group of investors bet against the United States mortgage market. In their research, they discover how flawed and corrupt the market is.

<code>https://www.imdb.com/title/tt1596363/?ref_=nv_sr_srsg_0_tt_8_nm_0_in_0_q_THE%2520BIG%2520SHORT</code>