Crypto
FTX Files Plan to Return Billions of Dollars to Creditors
The bankruptcy estate of FTX Trading Ltd, led by CEO John Ray III and the lawyers of Sullivan & Cromwell, has submitted an amended reorganization plan for the distribution claims of the customers and creditors.
According to the reorganization plan submitted last Friday, the bankrupt exchange will repay billions of dollars to customers and creditors. Under the plan, the claimants’ digital assets would be valued in cash at the time of the date of the bankruptcy filing on 11 November 2022.
However, the plan did not detail how the claimants would receive the proceeds from the bankrupt exchange. It is also unclear if the FTX brand would restart its services as a cryptocurrency exchange.
“The Plan and this Disclosure Statement reflect many compromises to create the best, most equitable, and economical outcome for all creditors and stakeholders in these Chapter 11 Cases,” the FTX debtors said in a statement.
The plan will be sent for approval from the creditors, likely with more specific details, next year before it is sent for the court’s final approval.
FTX Put a Dent on Crypto
At its peak, FTX was the second-largest crypto exchange in terms of trading volume. However, the exchange collapsed overnight after the shady business practices of its founder and former CEO, Sam Bankman-Fried, surfaced. Bankman-Fried has been convicted of seven counts of criminal charges and is now waiting for his sentencing.
Meanwhile, the latest court filing of FTX also revealed massive legal costs that are eating through the claims of the customers and creditors. Between 11 August and 31 October, the FTX bankruptcy lawyers have charged at least $118.1 million. The management consulting firm Alvarez and Marshall billed the most at $35.8 million for three months of services, followed by law firm Sullivan & Cromwell with a bill of $31.8 million.
Latest numbers from the FTX bankruptcy are interesting:
Customer shortfall: $1.422 Billion
Bankruptcy fees: $1.45 Billion pic.twitter.com/FhCtFPeQ3z— Jameson Lopp (@lopp) December 17, 2023
Meanwhile, the court recently granted FTX permission to sell approximately $873 million worth of assets held in trust. The bankrupt exchange is also offloading its subsidiaries and selling its crypto derivatives subsidiary LedgerX for $50 million earlier in the year.
The bankruptcy estate of FTX Trading Ltd, led by CEO John Ray III and the lawyers of Sullivan & Cromwell, has submitted an amended reorganization plan for the distribution claims of the customers and creditors.
According to the reorganization plan submitted last Friday, the bankrupt exchange will repay billions of dollars to customers and creditors. Under the plan, the claimants’ digital assets would be valued in cash at the time of the date of the bankruptcy filing on 11 November 2022.
However, the plan did not detail how the claimants would receive the proceeds from the bankrupt exchange. It is also unclear if the FTX brand would restart its services as a cryptocurrency exchange.
“The Plan and this Disclosure Statement reflect many compromises to create the best, most equitable, and economical outcome for all creditors and stakeholders in these Chapter 11 Cases,” the FTX debtors said in a statement.
The plan will be sent for approval from the creditors, likely with more specific details, next year before it is sent for the court’s final approval.
FTX Put a Dent on Crypto
At its peak, FTX was the second-largest crypto exchange in terms of trading volume. However, the exchange collapsed overnight after the shady business practices of its founder and former CEO, Sam Bankman-Fried, surfaced. Bankman-Fried has been convicted of seven counts of criminal charges and is now waiting for his sentencing.
Meanwhile, the latest court filing of FTX also revealed massive legal costs that are eating through the claims of the customers and creditors. Between 11 August and 31 October, the FTX bankruptcy lawyers have charged at least $118.1 million. The management consulting firm Alvarez and Marshall billed the most at $35.8 million for three months of services, followed by law firm Sullivan & Cromwell with a bill of $31.8 million.
Latest numbers from the FTX bankruptcy are interesting:
Customer shortfall: $1.422 Billion
Bankruptcy fees: $1.45 Billion pic.twitter.com/FhCtFPeQ3z— Jameson Lopp (@lopp) December 17, 2023
Meanwhile, the court recently granted FTX permission to sell approximately $873 million worth of assets held in trust. The bankrupt exchange is also offloading its subsidiaries and selling its crypto derivatives subsidiary LedgerX for $50 million earlier in the year.
World’s popular digital currency rises as high as $99,073 on expectations Trump will ease legal and regulatory hurdles.
Bitcoin is nearing the $100,000 mark as crypto enthusiasts bet that United States President-elect Donald Trump will usher in a more welcoming regulatory environment for digital assets.
The world’s most popular digital currency rose as high as $99,073 on Thursday, extending its surge since Trump’s re-election on November 5.
The commodity has risen more than 60 percent since election day as investors anticipate Trump’s incoming administration to ease regulatory and legal hurdles to its use.
Trump, who called the asset a “scam” during his first term, accepted campaign donations in cryptocurrency, and has pledged to make the US “the crypto capital of the planet” and accumulate a national bitcoin reserve.
Trump and his three sons in September also announced the launch of their own crypto business, World Liberty Financial, which investors have taken as a promising sign of the president-elect’s belief in the sector.
In another bullish signal for the sector on Thursday, United States Securities and Exchange Commission (SEC) chair, Gary Gensler, who was widely disliked among crypto investors for his aggressive enforcement actions targeting the sector, confirmed that he would step down in January.
Trump had pledged to fire Gensler on “day one” of his administration, though the president does not have the authority to remove the SEC chair before the end of his or her term.
While viewed by supporters as a ticket to big returns and financial freedom, Bitcoin and other cryptocurrencies are known for their volatility and have faced government crackdowns in several parts of the world.
After climbing to a record high of $69,000 in late 2021, Bitcoin plunged to less than $16,000 over the following year.
The commodity burst past its previous peak in March after gaining more than 300 percent since November 2022.
Crypto
Shemaroo Entertainment and PWR Chain Announce Strategic Partnership to Revolutionize India’s Digital Entertainment through Blockchain Innovation – Press release Bitcoin News
WisdomTree has launched a new cryptocurrency exchange-traded product (ETP), the US asset manager announced today, with a focus on the XRP digital currency.
The new WisdomTree Physical XRP (XRPW), joins the firm’s $1.1bn lineup of physically backed cryptocurrency products, designed to provide European investors with a straightforward, regulated means of investing in digital assets without direct ownership.
The XRP asset, native to the XRP Ledger (XRPL), has carved out a unique role for itself in the digital currency landscape, as a blockchain optimised for cross-border payments and high-speed transactions.
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