Wall Street Pros Offer Crypto Holders a Backdoor Bankruptcy Exit

Niche credit traders have a pitch for crypto holders locked out of their accounts at Voyager Digital Ltd. and Celsius Network LLC: Sell the rights to your coins at something like a 75% discount and let Wall Street worry about the rest.

When crypto lenders Voyager and Celsius went bankrupt last month, they turned their customers into creditors. Those users cannot touch their coins and don’t know when they will get repaid, how much they might recoup or what form payouts could take.

Now, an oft-overlooked corner of the credit market is offering an escape hatch. Bankruptcy claims traders ...