Crypto Trader Can't File For Bankruptcy Amid SEC Suit

Law360 (July 14, 2021, 7:05 PM EDT) -- An Idaho man accused of running a fraudulent cryptocurrency investment scheme can't file for Chapter 11 because the terms of a court-imposed restraining order and a preliminary injunction explicitly disallow bankruptcy filings, an Idaho federal court has found.

Shawn Cutting and his investment entity, Crypto Traders Management LLC, didn't demonstrate any change in circumstances that would warrant adjusting the terms of a $13.8 million asset freeze, U.S. District Judge B. Lynn Winmill said Tuesday.

The court had issued a temporary restraining order freezing the assets along with other restrictions after the U.S. Securities and Exchange Commission filed an enforcement suit accusing Cutting...

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