Defunct crypto lending platform Celsius Network is paying back billions to creditors. Last year, a US judge approved a bankruptcy plan for Celsius after it filed for bankruptcy in July 2022 when its token plummeted by 99% and it could not fulfill withdrawals. The company, dubbed “NewCo,” was granted a $1.25 billion balance sheet, $450 million […]
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The Chapter 11 bankruptcy reorganization hearing for Terraform Labs Pte. Ltd. and Terraform Labs Limited is set for Sept. 19, 2024, at 10 a.m. EDT. This hearing will be pivotal in shaping the future of the crypto company, which has encountered substantial hurdles since the Terra ecosystem’s collapse in 2022. Terraform Labs Faces Pivotal Bankruptcy […]
The assets in question were evidently given to Tether as collateral.
Defunct cryptocurrency exchange Celsius has filed a lawsuit against Tether alleging misappropriation of assets and seeking approximately $3.5 billion in BTC returns, damages, and legal fees.
Up front: Tether reports that Celsius, in its lawsuit, seeks the return of approximately $2.4 billion worth of BTC. However, publicly available court documents show that Celsius has asked the court for relief in the amount of 57,428.64 BTC or its current market dollar equivalent, plus damages and legal fees.
The lawsuit alleges that, during Celsius’ bankruptcy proceedings, Tether loaned it a specific amount of USDT (the company’s stablecoin, a cryptocurrency backed by the US dollar). In return for this loan, Celsius sent Tether 39,542.42 BTC in collateral.
In a January open letter, Gemini co-founder Cameron Winklevoss accused entities related to Genesis of inflating their assets.
Genesis, an institutional lending platform that filed for bankruptcy in 2023, announced the completion of its Chapter 11 restructuring plan on Aug. 2, and the disbursement of approximately $4 billion in funds to the injured parties.
As part of the plan, Bitcoin (BTC) creditors “will receive 51.28% recoveries as valued on an in-kind basis in the form of BTC,” and Ether (ETH) creditors will receive 65.87% recoveries paid out in the digital currency.
Most altcoin creditors will receive 87.65% recoveries of their digital assets, with Solana (SOL) being the notable exception. Creditors reclaiming SOL holdings will be subject to a 29.58% recovery rate, once again payable on an in-kind basis. Stablecoin and cash creditors are eligible to recoup 100% of their losses in the form of US dollars, according to the restructuring plan.
Crypto lender Blockfi announced that it will begin interim crypto distributions via Coinbase this month. U.S. clients will receive notifications, while non-U.S. clients face regulatory restrictions. Blockfi, which filed for bankruptcy protection in November 2022, is now collaborating with Coinbase to maintain withdrawals and plan future distributions, including those recovered from FTX. Blockfi to Begin […]
The US commodities regulator didn’t seek a civil monetary penalty, meaning the entire $12.7 billion would be used to pay back FTX’s creditors.
Bankrupt cryptocurrency exchange FTX and the United States commodities regulator have agreed to a $12.7 billion settlement, resolving a 19-month long lawsuit.
The agreement comes after months of back-and-forth negotiations and is now only subject to court approval, a recently released July 12 filing shows.
"The Proposed Settlement is an integral and valuable component of the Debtors’ proposed chapter 11 reorganization plan," said Commodity Futures Trading Commission senior trial attorney Carlin R. Metzger and FTX’s CEO John. J Ray III.
The decentralized autonomous organization was first impacted by the collapse of the Terra ecosystem in 2022 and suffered $16.4 million in losses.
HectorDAO, a decentralized autonomous organization, has filed for Chapter 15 bankruptcy in the United States following a series of market collapses and hacks that drained the community of funds.
According to the June 17 filing from Interpath Advisory, a court-appointed firm specializing in bankruptcy stewardship and reorganization, HectorDAO’s current financial condition is mainly due to three factors: the collapse of the Terra network in May 2022, the collapse of the Multichain protocol, and a hack impacting the Hector treasury.
In the filing, Interpath Advisory noted that it was still investigating whether the January 16 hack, which resulted in $2.7 million in funds being drained from HectorDAO, was an inside job committed by former managers of the DAO’s treasury.
According to a local report, the Japan-based crypto exchange Bitflyer has acquired the failed Japanese unit of FTX. The report indicates that arrangements are currently underway to take over the business. Bitflyer Acquires Bankrupt FTX Japan, Local Report Claims On June 20, 2024, NHK reported that Japan’s Bitflyer acquired the now-defunct Japanese unit of FTX. […]
FTX Japan, a Japanese subsidiary of the collapsed FTX exchange, is preparing to return with a new owner after repaying its customers in 2023.
Japanese cryptocurrency exchange BitFlyer will acquire the Japanese arm of the collapsed FTX trading platform, according to local media reports.
BitFlyer Holdings is in the process of acquiring FTX Japan in a deal expected to be worth billions of yen, or tens of millions of dollars, the local news agency Nikkei reported on June 20.
Following the acquisition, FTX Japan's core business is reportedly planned to shift to crypto asset management or custody, targeting institutional investors.
Though Sam Bankman-Fried is currently serving a prison sentence, affected FTX customers and creditors are making claims on the firm’s assets, which are still worth millions.
Different groups have filed competing claims over some or all of the assets at issue in the criminal case against former FTX CEO Sam Bankman-Fried, who is currently serving a 25-year sentence in federal prison.
In a June 14 filing in the United States District Court for the Southern District of New York, lawyers representing the FTX debtors and the firm’s Bahamian entity, FTX Digital Markets, argued that they had a “superior right” to assets that may be used to satisfy the court’s $11-billion judgment against Bankman-Fried. The legal team claimed that FTX’s aircraft, funds held at Signature Bank, Farmington State Bank and Silvergate Bank, the sale of shares of Robinhood stock and political contributions associated with former FTX executives should not be used for Bankman-Fried’s judgment but to benefit victims of the defunct exchange.
“Amending the Preliminary Forfeiture Order to provide for the return the Specific Property to the Debtors and/or FTX Digital will benefit all the creditors and stakeholders in the Debtors’ Chapter 11 bankruptcy proceedings and FTX Digital’s liquidation in The Bahamas, including victims of Bankman-Fried’s crimes,” said the June 14 filing. “Distributing the value of the Specific Property to the more than 1 million victims of BankmanFried’s criminal scheme is no small feat, and doing so through the Debtors’ existing claims administration architecture and processes will maximize the funds available for distribution by minimizing the incremental administrative and professional costs.”
