Precedent-setting win delivers tens of millions to creditors; Bankruptcy Court authorizes one of the largest-reported “substantial contribution” awards
NEW YORK and MIAMI, Feb. 13, 2026 /PRNewswire/ — Today, Akin and GXD Labs, a wholly-owned subsidiary of Atlas Grove Partners, announced a pivotal win for early investors in now-defunct Bitcoin miner Rhodium Enterprises Inc. (Rhodium).
Rhodium filed for bankruptcy in August 2024 with nearly $87 million in obligations to holders of Simple Agreements for Future Equity (SAFEs), a relatively new investment tool frequently used by founders to raise funds in early-stage start-ups. Key Rhodium stakeholders argued that the SAFEs were worth only pennies on the dollar, due in part to a lack of legal precedent around these novel but increasingly common financial instruments. As a result of Akin’s and GXD Labs’ efforts, the SAFE holders argued successfully that they have debt claims, not mere equity interests, with a payment priority ahead of common stock. Based on their ground-breaking victory, SAFE parties have the opportunity to collectively recover in the aggregate more than $85 million, which is greater than 98% of the aggregate value of all SAFE claims, compared to the zero, or near zero, recovery sought by Rhodium when the bankruptcy began.
The Court also authorized an $8.5 million “substantial contribution” payment, one of the largest such awards ever reported. The award recognized the incredible results Akin and GXD Labs helped achieve for the bankruptcy estate.
“We are pleased that our efforts, in collaboration with Akin, have resulted not only in a significant monetary award for the creditors in this case, but also in a matter-of-first-impression ruling that will impact other current and future SAFE holders,” said R Christian Wyatt, Co-Founder and Managing Partner, GXD Labs.
“Our work with the GXD Labs team on this matter enabled us to find a way to compensate those who invested with Rhodium. In many cases, a bankruptcy asset valued at zero would remain uncollectable, but here, SAFE holders may get close to a full recovery,” said Mitch Hurley, Partner, Akin. “In addition, we hope that the precedent set around SAFEs will benefit future investors.”
The GXD Labs team, led by David Proman, R Christian Wyatt and Jordan Pietzsch, worked hand-in-hand with the Akin team, led by litigation partner Mitch Hurley and Sarah Schultz, to achieve this highly impactful victory.
About GXD Labs
GXD Labs, a wholly owned subsidiary of Atlas Grove Partners (www.atlas.gp), is a digital asset and blockchain operating, investment and advisory business. We participate in all parts of the digital asset universe, through public and private investments, complex asset recovery, litigation and wind-down efforts. We also advise on strategic planning, growth, liability management and restructuring. www.gxdlabs.io
This communication is provided for informational purposes only and does not constitute an offer to buy or sell, or a solicitation to buy or sell, any securities, financial instruments, or digital assets. The information herein reflects the views of Akin and GXD Labs as of the date of this release and is subject to change without notice. Certain statements may constitute forward-looking statements that involve known and unknown risks and uncertainties; actual outcomes may differ materially. Neither Akin nor GXD Labs guarantees the accuracy or completeness of information obtained from third-party sources.
View original content:https://www.prnewswire.com/news-releases/akin-and-gxd-labs-announce-landmark-victory-with-85-million-plus-safe-claim-in-rhodium-enterprises-litigation-302687921.html
SOURCE Akin, Gump, Strauss, Hauer, & Feld LLP
