Popular crypto company files for Chapter 15 bankruptcy as Bitcoin crashes
The cryptocurrency market crash took a sharp turn, with the total market cap falling to $3.13 trillion on November 20.
Bitcoin (BTC) fell below the $87,000 price level, down 2.45% in the last 24 hours.
Related: Veteran trader who called out the 2018 Bitcoin crash now predicts a 35% crash
In the last 24 hoursMore than $370 million worth of BTC positions were wiped out. Overall, crypto positions worth more than $900 million were liquidated.
The shocking market crash led to several long-term whales and small retail traders having their entire crypto holdings wiped out.
As previously reported, decentralized application (dApp) analytics platform DappRadar has decided to shut down because running a large organization has become “financially unsustainable” in the “current environment.”
Now another crypto company has filed for Chapter 15 bankruptcy in the US
Rental Coins, a Brazilian crypto company, has filed for Chapter 15 bankruptcy in the US to help it recover its assets. Bloomberg Law recently reported.
Chapter 15 is designed for cross-border bankruptcy cases and allows foreign companies entering bankruptcy proceedings abroad to protect their U.S.-based assets.
Rental Coins filed a request for relief from a Brazilian court-appointed judicial administrator in the U.S. Bankruptcy Court for the Southern District of Florida on November 18.
Rental Coins legacy aims to trace crypto transactions and recover assets lost in large-scale pyramid-style scams in the US
The crypto company was running an investment program that generated high returns. However, authorities in Brazil accused the platform of running a fraudulent investment scheme and mismanaging customer funds. A former executive of Rental Coins is currently serving a prison sentence for his role in the crypto scam.
The estate said it decided to file for Chapter 15 bankruptcy in U.S. court so it could preserve remaining assets and ensure an orderly court-supervised reorganization.
This story was first reported by: Street First appeared on November 20, 2025 Bankruptcy News and Analysis section. Add TheStreet at: Preferred Source by clicking here.
