A crypto lending platform that stopped customer withdrawals last year amid the FTX crisis says it will now be able to pay its creditors after emerging from bankruptcy. BlockFi filed for bankruptcy on November 28th, 2022 after sustaining big financial losses from the implosion of crypto exchange FTX, one of its top borrowers. Nearly a […]
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Bankrupt crypto exchange FTX wants to look into millions it had given to the Center for AI Safety, a nonprofit that has argued AI should be a global priority next to pandemics and nuclear war.
Bankrupt crypto exchange FTX is looking to demand information on millions of dollars in payments it had previously given to a nonprofit AI safety organization — the Center for AI Safety (CAIS).
In an Oct. 25 bankruptcy court filing, the lawyers helming FTX claimed the firm gave $6.5 million to CAIS between May and September 2022 — months before the crypto exchange collapsed and declared bankruptcy.
FTX wants a Delaware Bankruptcy Court judge to approve issuing subpoenas to CAIS that query if it received payments, funds, communications or entered into agreements or contracts with FTX, its affiliates and former executives.
The exchange claims CAIS rejected “requests to voluntarily provide an accounting related to the transfers” and the two firms had an August phone call and emails in early October.
CAIS did not immediately respond to a request for comment.
FTX’s request to probe CAIS is likely part of its efforts to recover funds to repay its creditors and customers caught in its collapse in November 2022. In a June report, FTX said it had recovered around $7 billion and needed another $1.7 billion to cover customer funds it alleges were misappropriated.
Related: Will Sam Bankman-Fried fix his case when he takes the stand?
CAIS is likely best known for an open statement on AI risk published in May, which said mitigating extinction risks from AI should be prioritized alongside nuclear war. The statement was signed by multiple high-profile figures including OpenAI CEO Sam Altman and the “Godfather” of AI Geoffrey Hinton.
FTX’s proposed subpoenas request that CAIS produce an array of transfers, documents and communications it received from FTX, FTX Philanthropy, the FTX Foundation, the FTX Future Fund “or any officer, director, contractor or employee” of FTX.
It also asks for communications specifically from co-founders Sam Bankman-Fried and Gary Wang, Bankman-Fried’s father Joseph Bankman and brother Gabriel Bankman-Fried, former Alameda Research CEO Caroline Ellison and former FTX lawyers Can Sun and Daniel Friedberg, among others.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
These options reportedly encompass selling the entire exchange, including its extensive customer base of over 9 million, to the potential of forming a partnership with another entity to revive the platform.
FTX Trading Ltd., formerly a prominent player in the cryptocurrency exchange sector, is carefully considering its future after going through bankruptcy proceedings.
According to a report, during a court hearing in Wilmington, Delaware, Kevin M. Cofsky, the company's investment banker from Perella Weinberg Partners, revealed that a decision regarding the company's direction would be made by mid-December. Additionally, active negotiations are underway with various investors regarding potential binding offers.
Several possibilities are being considered. The options reportedly include selling the entire exchange, which includes its extensive customer base of over 9 million, to the potential of forming a partnership with another entity to revive the platform. Mr Cofsky has contemplated the prospect of FTX independently revitalizing its trading platform. However, the identities of the potential bidders have not been disclosed.
Following its bankruptcy declaration last year, FTX has sought to raise funds for creditor repayment. As per court records, FTX administrators have successfully reclaimed approximately $7 billion in assets, with a substantial $3.4 billion in cryptocurrency.
Additionally, during the court proceedings, the company's attorney, Andrew Dietderich, reportedly disclosed that certain complex disputes with key creditor groups have reached a preliminary resolution. This development allows FTX to proceed with a comprehensive payout strategy by December. Nevertheless, the precise percentage of customer recovery remains undetermined and will largely hinge on the outcome of either selling the exchange or revitalizing it.
Related: Sam Bankman-Fried seeks expert to counter testimony from DOJ witnesses
FTX faced a significant setback when its founder, Sam Bankman-Fried, resigned as CEO. This decision came as a response to FTX suspending its trading platform due to financial difficulties. Bankman-Fried is undergoing a trial in New York, where he faces allegations of diverting FTX customer funds to a separate entity under his control. These funds purportedly funded high-risk trades, substantial political contributions, and the acquisition of luxury properties, ultimately leading to the downfall of both businesses.
Magazine: Can you trust crypto exchanges after the collapse of FTX?
Former Alameda CEO Caroline Ellison recognized she wasn't doing a good job months before the company filed for bankruptcy, but Sam Bankman-Fried persuaded her to stay.
Ellison spent over ten hours testifying during Bankman-Fried's trial this week, notably entering through the front doors of the federal court in Manhattan, joined by her attorneys. According to Ellison, she had not seen Bankman-Fried since the crypto empire failed in November last year. But their communication eroded even months before.
In April 2022, their romantic relationship came to an end, and Caroline started avoiding meetings with Bankman-Fried, even though they still lived in the same luxurious apartment in the Bahamas. Alameda's growing liabilities with FTX and the breakup made her consider leaving Alameda.
"I feel link neither Trabucco nor I have been doing a great job of pushing on stuff," she wrote in the document to Bankman-Fried, shared as evidence during her cross-examination by his defense counsel.
One more Caroline Ellison courtroom sketch.
— Ariel Givner, Esq. (@GivnerAriel) October 11, 2023
This one featuring SBF himself! https://t.co/q3O6xqxEhl pic.twitter.com/cQJbj5V1H7
Bankman-Fried asked her to stay, saying that her departure could create rumors about Alameda's financial health, thus harming FTX credibility. Ellison remained as CEO.
Ellison joined Alameda as a trader in 2018. By 2020, she was handling most of the company's operations, while Bankman-Fried was focused on his newly launched crypto exchange FTX. In August 2021, she became co-CEO alongside Sam Trabucco, who stepped down a few months later, leaving her in charge of the company. In August 2022, Trabucco officially resigned as co-CEO.
Ellison was against creating FTX, she revealed. “I didn't think of myself as ambitious before I started at Alameda, but I believe I became more ambitious” under Bankman-Fried's incentive, she said.
As CEO, Elisson was in charge of handling Alameda's crypto lenders. In mid-2022, after the Terra ecosystem failed, the company's open-term loans stood at $1.3 billion. The market downturn drained liquidity from crypto assets, leading Alameda's lenders to demand repayment on loans.
According to Ellison, Bankman-Fried instructed her to keep repaying creditors via Alameda's line of credit with FTX. In other words, Alameda would use FTX's customers' assets to repay crypto lenders. At the time, its line of credit with the exchange stood at $13 billion.
As lenders demanded repayment of loans and Alameda's balance sheets, Bankman-Fried suggested Ellison use "alternative means" for presenting the company's financials. In the following months, Ellison would create many additional versions of a balance sheet to deceive creditors.
Early in November, an alternative version of Alameda's balance sheet was leaked. At the time, Ellison was on vacation in Japan, but she had to travel to FTX Hong Kong's office to deal with the company's crisis.
While the balance sheet data didn't reflect the company's reality, it was enough to spread rumors and trigger a bank run on FTX a few days later, exposing an $8 billion gap between the companies.
Cooperating with the Department of Justice since December, Ellison will soon receive her sentence regarding the seven counts of fraud and conspiracy to commit fraud she was charged with.
Caroline Ellison wasn't doing a good job leading Alameda Research in 2022, and she did not hide it. Pieces of her personal notes shared as evidence by prosecutors on Sam Bankman-Fried's trial revealed details about the trading firm's struggles and its CEO's desire to resign weeks and months before the collapse of FTX.
Magazine: Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis
Genesis previously reportedly said that the $175 million settlement was “fair and equitable,” while FTX creditors wanted to contest it.
A New York bankruptcy judge has approved a settlement between bankrupt cryptocurrency firms FTX and Genesis Global Trading (GGC), allowing FTX-affiliated Alameda Research to get $175 million from GGC.
The United States Bankruptcy Court for the Southern District of New York gave the green light to the settlement agreement between FTX and GGC’s parent company Genesis Global Holdco in a filing submitted on Oct. 11.
Following the approval, Genesis debtors are officially authorized to enter into and perform under the settlement agreement and pay $175 million to FTX.
In conjunction with approving the settlement amount, New York bankruptcy Judge Sean Lane has also expunged multiple claims by the FTX debtors against Genesis.
According to the filing, the court has accepted the withdrawal of a large number of claims, including three claims by FTX Trading, six claims by Alameda Research, and six claims by West Realm Shires Services, which represents FTX US.
The approved settlement marks a significant reduction from the amount originally claimed by FTX debtors, who collectively asserted claims totaling around $3.9 billion in May 2023. The FTX claims included roughly $1.8 billion in loan repayments allegedly made by Alameda to GGC, $1.6 billion of assets allegedly withdrawn by the Genesis debtors from FTX and other assets.
Genesis previously reportedly said the settlement was “fair and equitable” and would allow the company to avoid pursuing “protracted litigation,” the outcome of which would be “inherently uncertain.” On the other hand, FTX creditors expressed discontent over the settlement and urged the Official Committee of Unsecured Creditors of FTX to contest the agreement in August 2023.
Related: Caroline Ellison provided 7 ‘alternative’ balance sheets hiding Alameda’s exposure to FTX
The FTX exchange collapsed in November 2022, triggering a massive contagion in the cryptocurrency industry. Crypto lending firm Genesis was one of many companies affected by the failure of FTX due to its exposure to FTX, with its derivatives business losing access to $175 million worth of crypto assets locked away in an FTX trading account. After halting withdrawals in November 2022, Genesis filed for bankruptcy in January 2023.
Genesis’ settlement with FTX comes amid the ongoing trial of FTX founder Sam Bankman Fried, who faces 13 charges like fraud, money laundering and bribing officials.
Magazine: Magazine: Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis
Former FTX CEO Sam Bankman-Fried was once “freaking out about” getting regulators to crack down on Binance and raising capital from a Saudi Crown Prince, according to Alameda former CEO Caroline Ellison.
Weeks and months before the collapse of crypto exchange FTX, former CEO Sam Bankman-Fried was “freaking out” about Alameda, buying shares in Snapchat, raising capital from Saudi royalty, and getting regulators to crack down on rival crypto exchange Binance.
So was written in former Alameda Research CEO Caroline Ellison’s personal notes about FTX and Alameda, which prosecutors presented on the second day of her testimony in New York.
During the trial, Ellison told jurors that a crash in the Terra ecosystem in May 2022 was significant enough to get Bankman-Fried to consider shutting down Alameda and seeking to raise $1 billion in capital from the Saudi Prince, known for his investments in blockchain gaming through Saudi Arabia's sovereign wealth fund.
Another priority for Bankman-Fried a year ago was “getting regulators to crack down” on the crypto exchange Binance, a move intended to increase FTX’s market share, according to Ellison. She didn’t provide any details on how Bankman-Fried planned to do it.
One more Caroline Ellison courtroom sketch.
— Ariel Givner, Esq. (@GivnerAriel) October 11, 2023
This one featuring SBF himself! https://t.co/q3O6xqxEhl pic.twitter.com/cQJbj5V1H7
Bankman-Fried was also seeking more funds from crypto lender BlockFi, which had already lent Alameda over $660 million, she said. His other top concerns included trading bonds issued by the Japanese government, buying Snap Inc (SNAP) stocks, and “Willie being happy."
While the list doesn’t specify who Willie was, the name was possibly a reference to Bankman-Fried’s mentor William MacAskill.
According to Ellison, Bankman-Fried blamed her for Alameda’s troubles and poor hedging. During the trial, Ellison admitted that a better hedge strategy could have helped Alameda face the crypto winter, but noted that the company also had large open-term loans and had spent billions from its line of credit with FTX.
Open-term loans have no maturity date, meaning the borrower has a prepayment option, while the lender has a call option. In June, lenders such as Genesis Capital started enforcing their call option, requiring Alameda to repay millions of dollars. Under Bankman-Fried’s direction, Ellison repaid part of Alameda’s debts with funds from FTX customers. In September 2022, Alameda’s liabilities with FTX mounted $13.7 billion, while its open-term loans stood at $1.3 billion, she said.
In addition, and also at Bankman-Fried’s request, Ellison also created "alternative" spreadsheets for Alameda’s lenders, hiding the company's financial liabilities with FTX to make it "look better" and to keep lenders from calling for full repayment.
Ellison also revealed moments of emotional distress. Speaking calmly and firmly during the trial, she expressed her anxiety about the possibility of customers withdrawing their funds from FTX amid the “liquidity crush” at Alameda.
"Every day, I was worrying about the possibility of [loans] being called at the same time."
Ellison's cross-examination by Bankman-Fried's defense will begin on Oct. 12.
Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in
The trial of former FTX CEO Sam Bankman-Fried started on October 3. Four witnesses explained to jurors how $8 billion in funds from customers went missing.
Luxury real estate, political donations, investments, and magazine covers. A year ago, that was the life of Sam Bankman-Fried, Assistant U.S. Attorney Thane Rehn remarked during the opening statements of the world's most famous crypto trial.
"All of it was built on lies," Rehn continued, claiming that the co-founder of Alameda Research and FTX "lied to the world" to get richer and increase influence by lobbying in Washington, D.C. Rehn's statement apparently affected even Bankman-Fried's defense counsel, who responded with a lukewarm remark. His attorney, Mark Cohen, portrayed his client as an entrepreneur who made mistakes during times of accelerated growth. "There was no theft," he told jurors.
At the gallery, among journalists and attorneys, were Joseph Bankman and Barbara Fried, parents of the defendant. While Joseph occasionally smiled over the last few days, Barbara stared at her son in courtroom for hours.
This week, four witnesses testified in the trial at the United States District Court in Manhattan. The list includes a French trader, an investor in FTX, alongside Adam Yedidia and Gary Wang, former close friends of Bankman-Fried.
Sam Bankman-Fried trial highlights were covered by Cointelegraph on the ground.
The prosecutor’s first witness to the jury was a cocoa trader from Paris, currently living in London. Marc Julliard was one of the victims of the FTX debacle in November 2022. Juilliard told jurors he had four Bitcoins on FTX, worth nearly $100,000 at the time. He recalled feeling anxious after trying to withdraw funds without receiving a return.
On FTX, he never traded futures. The Bitcoin stake was a substantial part of Julliard's savings. Prosecutors used his testimony to illustrate how customers who trusted funds with FTX had been harmed since last year’s events.
Bankman-Fried's defense tried to downplay prosecutors' arguments, saying that the trader was a licensed professional in London who did not make decisions based on celebrity endorsements. Cohen noted that there was nothing wrong with hiring Tom Brady to run an ad for FTX.
Adam Yedidia and Bankman-Fried became friends at the Massachusetts Institute of Technology (MIT). Before joining FTX as a developer in January 2021, Yedidia briefly worked at Alameda in 2017 as an intern. He was also one of the residents in FTX's $35 million luxury property in the Bahamas.
According to his testimony, fiat funds from customers were received by FTX through an Alameda subsidiary called North Dimension. Every deposit made by a FTX customer was considered a debt owed from Alameda to FTX. At the time of the exchange’s collapse, this liability stood at $8 billion.
Yedidia's learned about the billionaire debt between the companies months before its bankruptcy filing. "Are things okay?," Yedidia's asked Bankman-Fried in a paddle tennis court, mentioning Alameda's liability. He did not receive a positive response. "We are not bulletproof anymore," Bankman-Fried told him, adding that it would take the companies six months to three years to settle their accounts. "He looked nervous," Yedidia recalled.
Until November’s collapse, Yedidia saw FTX taking over its competitors, Binance and Coinbase. He even spent his millionaire bonus to acquire a 5% stake in the firm.
"I trusted Sam, and Caroline, and others in Alameda to handle the situation."
Yedidia resigned in November 2022, after learning that Alameda was using the funds sent from FTX customers to repay its debts. He has been collaborating with the U.S. Department of Justice since last year.
Matthew Huang, co-founder of venture capital firm Paradigm, invested a total of $278 million in FTX in two funding rounds between 2021 and 2022. For him, it was a complete loss.
According to Huang, the firm was not aware of the commingling of funds between FTX and Alameda, nor of the privileges that Alameda had with the crypto exchange. Alameda was exempt from the FTX liquidation engine, which closes positions at risk of liquidation, as shown by pieces of evidence brought by prosecutors from FTX code and database.
Under the exemption, Alameda was able to leverage its position and maintain a negative balance with FTX.
Huang admitted not conducting deeper due diligence on FTX, instead relying on the information provided by Bankman-Fried.
Day 3 of the #SBF trial, we’re here bright and early! ☀️ pic.twitter.com/PQ1rQV38Px
— Cointelegraph (@Cointelegraph) October 5, 2023
In Huang's words, Bankman-Fried was "very resistant" to the idea of having investors on FTX's board of directors, but pledged to build one and appoint experienced executives.
Once co-founders of two prominent companies, Wang and Bankman-Fried found themselves on opposite sides of the courtroom this week. "I'm here because I committed wire fraud, securities fraud, and commodities fraud," he told jurors, adding that he had also engaged in conspiracy alongside Bankman-Fried, Caroline Ellison — former CEO of Alameda Research —, and Nishad Singh — former director of engineering.
"I'm here because I committed wire fraud, securities fraud, and commodities fraud."
Wang is considered a key witness in the case. His examination by prosecutors started on Oct. 5 and should conclude on Oct. 10, when the second week of the trial begins. Wang offered a deeper look at how FTX and Alameda operated under Bankman-Fried's direction.
In 2019, a few months after FTX was founded, Alameda was granted special privileges on FTX code, said Wang. Based on screenshots of FTX database and code on GitHub, prosecutors showed Alameda had an unlimited negative balance, a $65 billion special line of credit, and an exemption from liquidation.
Bankman-Fried's defense counsel argued that these privileges were similar to ones received by other market makers on FTX. The defense also pointed to the fact that Alameda was the primary market maker on FTX; thus, having the ability to have a negative balance was essential for its role.
According to Wang, the commingling of funds between the companies grew over time. In 2020, Bankman-Fried instructed Wang to keep Alameda's negative balance under FTX revenue. Alameda's negative balance rose, and so did its credit line with FTX. The liability of Alameda for FTX peaked at $3 billion in late 2021 from $300 million in 2020.
"I trusted his judgment," Wang replied when asked why he supported Alameda's privileges.
Prosecutors also highlighted the MobileCoin (MOB) exploit in 2021. In an attempt to conceal the loss from FTX investors, Bankman-Fried allegedly told Wang and Ellison to add the millionaire deficit to Alameda's balance sheet instead of keeping it on FTX financials.
Another key revelation was that FTX insurance fund had manipulated data, said Wang.
In the months prior to FTX's collapse, Bankman-Fried, Wang, and Singh discussed the possibility of shutting down Alameda and replacing it with other market makers. At the time, however, the company’s liabilities to FTX stood at $14 billion. In November 2022, Alameda ceased operations.
Wang is also cooperating with prosecutors. His testimony will resume on Oct. 10. Caroline Ellison will also be heard on the same day.
Magazine: Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis
The embattled crypto lender is seeking final court approval for a restructuring plan that will start repaying creditors before the end of 2023.
Embattled crypto lender Celsius Network has told a judge it plans to start paying back its customers by year’s end, amid an Oct. 2 hearing seeking approval for its reorganization plan.
In his opening statements at the confirmation hearing in New York, Celsius’ legal counsel Christopher Koenig said the new company dubbed “NewCo” will emerge from the proceedings with $450 million in seed funding.
A filing on Sept. 29 shows that Celsius plans to partially repay its creditors using $2.03 billion in Bitcoin (BTC) and Ethereum (ETH) and stock in the new company.
#Celsius will distribute at least $2.03B of crypto to Creditors.
— Celsius NewCo Community (@CelsiusNewCo) October 2, 2023
Meanwhile, NewCo will be seeded with up to $450 million in crypto.
NewCo has been backed by a group of companies in a consortium called Fahrenheit LLC which will manage the mining and staking business.
The judge presiding over the case, Martin Glenn, is considering whether to approve Celsius’s restructuring plan. The plan will also need to be cleared by security regulators. Despite garnering an overwhelming majority of votes in favor, it is being challenged by some creditors, according to reports.
“The Debtors arrive at Confirmation with a Plan that has the support of over 95% of voting Account Holders by both number and dollar amount,” Celsius stated in a filing presented at the confirmation hearing.
Related: Celsius creditors flag renewed phishing attacks ahead of bankruptcy plan
If the Celsius plan is approved, it would be one of the first failed crypto platforms from 2022 to be resurrected in a Chapter 11 bankruptcy case.
Celsius customers have been waiting to be made whole ever since the company halted withdrawals in June 2022 following the collapse of the Terra/Luna ecosystem.
Magazine: Simon Dixon on bankruptcies, Celsius and Elon Musk: Crypto Twitter Hall of Flame
Stout Risius Ross, the valuation advisor for Celsius Network, confirmed the accuracy of the bankrupt firm’s valuation report.
Joel E. Cohen, a mathematician and biologist representing Celsius Network’s valuation adviser, Stout Risius Ross, confirmed the accuracy of the fair value of certain of the debtors’ assets and liabilities as of May 31, 2023.
Following months of back and forth, most Celsius creditors recently voted in favor of a plan to see approximately $2 billion worth of Bitcoin (BTC) and Ethere (ETH) returned to creditors.
The voting results are in! Over 95% of creditors across all eligible classes voted to accept the Plan, a testament to our collaborative efforts during Chapter 11. https://t.co/9Z5xlBhNts @CelsiusUcc @FahrenheitHldg.
— Celsius (@CelsiusNetwork) September 25, 2023
Two days after attaining consensus around Celsius’ reorganization plan, a Sept. 28 court filing confirmed the accuracy of the value of debtors’ assets and liabilities. Stout conducted the valuations of cryptocurrency assets, loans and alternative investments.
In the declaration provided at the New York bankruptcy court, Cohen explained the methodologies used in the valuation analysis and concluded:
“Based on my work performed and the information and methodologies considered, I believe the Valuation Report accurately reflects the fair value of certain of the Debtors’ assets and liabilities as of May 31, 2023.”
According to a disclosure statement filed on Aug. 17, approximately $2 billion will be redistributed among creditors, and the plan will also distribute equity in a new company, temporarily dubbed “NewCo.”
Related: SEC raises concerns over Coinbase in objection to Celsius restructuring plan
Sporting a similar situation, bankrupt cryptocurrency lending platform BlockFi’s liquidation plan got approval from the New Jersey bankruptcy court.
The repayment amount received by BlockFi’s unsecured creditors will largely depend on whether BlockFi succeeds in its legal battle against FTX and other bankrupt cryptocurrency firms.
Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis
Coinbase CEO Brian Armstrong and chief legal officer Paul Grewal issued a joint statement questioning the SEC's reasoning in its Sept. 22 objection.
The United States Securities and Exchange Commission (SEC) has filed an objection to Celsius Network’s reorganization plan based in part on the regulator’s own ongoing lawsuit with crypto exchange Coinbase.
In a Sept. 22 filing in U.S. Bankruptcy Court for the Southern District of New York, the SEC filed a limited objection and reservation of rights over Celsius’ most recently proposed restructuring plan. The fourth revision of the bankruptcy plan, filed on Aug. 15, followed an initial proposal in March but has not been approved.
A supplement to the reorganization plan proposed a distribution services agreement with Coinbase which Celsius sought to file under seal. The SEC claimed in its objection that the deal may require Coinbase to “go far beyond the services of a distribution agent”, potentially providing services at issue in the commission’s civil suit filed in June.
“The Debtors have confirmed that they do not intend for Coinbase to provide brokerage services to the Debtors, despite the language in the Coinbase Agreements to the contrary,” said the filing. “However, this Court should not be asked to approve a deal where the material terms are missing or inconsistent.”
Revisions to the Celsius restructuring plan have been ongoing since March, while Coinbase faces an SEC lawsuit over allegedly offering unregistered securities. In a Sept. 25 X, Coinbase CEO Brian Armstrong and chief legal officer Paul Grewal said the exchange was “proud to engage with Celsius” in its efforts to return user funds:
Coinbase is proud to engage with Celsius to distribute crypto back to its customers. I wonder, why would the SEC object to a trusted US public company taking on this role? We look forward to addressing this with the bankruptcy court and undertaking our important role to make… https://t.co/5i1aJDiPXp
— paulgrewal.eth (@iampaulgrewal) September 25, 2023
Related: Celsius chooses NovaWulf’s bid to exit from bankruptcy
The bankruptcy court filing followed Celsius announcing a deal with Core Scientific in which the mining firm agreed to sell a mining data center to Celsius in exchange for $14 million in cash and settling all existing legislation between the two firms. According to Core Scientific, Celsius had defaulted on its payments since filing for bankruptcy in July 2022.
In August, the bankruptcy court approved Celsius sending out digital ballots to vote on the restructuring plan in October. The next hearing in the bankruptcy case is scheduled on Oct. 5.
Magazine: Tiffany Fong flames Celsius, FTX and NY Post: Hall of Flame
