FTX creditors list, BlockFi $1.2B exposure and new Celsius token…

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FTX creditor list shows airlines, charities and tech firms caught in collapse

The com­plete list of cred­i­tors owed mon­ey by the bank­rupt cryp­tocur­ren­cy exchange FTX has been released, reveal­ing a wide range of glob­al com­pa­nies. Among the poten­tial cred­i­tors are air­lines, hotels, char­i­ties, banks, ven­ture cap­i­tal com­pa­nies, media out­lets and cryp­to com­pa­nies, along with Unit­ed States and inter­na­tion­al gov­ern­ment agen­cies. Accord­ing to anoth­er head­line regard­ing the FTX scan­dal, U.S. fed­er­al pros­e­cu­tors allege that Sam Bankman-Fried invest­ed $400 mil­lion in the ven­ture cap­i­tal firm Mod­u­lo Cap­i­tal with mon­ey from the FTX’s cus­tomers. Inves­ti­ga­tors allege that Mod­u­lo was like­ly built with crim­i­nal pro­ceeds or mis­ap­pro­pri­at­ed funds. Lawyer costs in the case are esti­mat­ed to reach hun­dreds of mil­lions of dol­lars before the firm’s bank­rupt­cy inves­ti­ga­tion is over.

BlockFi uncensored financials reportedly shows $1.2B FTX exposure

Bank­rupt cryp­to lend­ing firm Block­Fi uploaded uncen­sored finan­cials by mis­take, reveal­ing $1.2 bil­lion in assets tied up with bank­rupt exchange FTX and defunct trad­ing firm Alame­da Research. The unredact­ed fil­ings show that, as of Jan. 14, Block­Fi had $415.9 mil­lion worth of assets linked to FTX and a whop­ping $831.3 mil­lion in loans to Alame­da. Block­Fi filed for Chap­ter 11 bank­rupt­cy on Nov. 28, cit­ing the col­lapse of FTX just weeks ear­li­er as the cause of its finan­cial troubles.

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New ‘Celsius token’ may be used to repay creditors

Bank­rupt cryp­to lend­ing firm Cel­sius may issue its own token to repay cred­i­tors. In a court hear­ing, Cel­sius attor­ney Ross M. Kwaste­ni­et said the firm is nego­ti­at­ing with its cred­i­tors on how to relaunch the plat­form and ade­quate­ly pay them back. If approved by cred­i­tors and the court, the relaunched ver­sion would be “a pub­licly-trad­ed com­pa­ny that is prop­er­ly licensed,” which is expect­ed to pro­vide cred­i­tors with more mon­ey than by sim­ply liq­ui­dat­ing  the company.

Binance holds token collateral and user funds on same wallet by ‘mistake’

Cryp­tocur­ren­cy exchange Binance admit­ted to mis­tak­en­ly stor­ing some cus­tomer funds in the same wal­let with its col­lat­er­al for Binance-mint­ed tokens, or B‑Tokens. The exchange already start­ed the process of trans­fer­ring the assets to ded­i­cat­ed col­lat­er­al wal­lets, and stressed that B‑Tokens are always ful­ly col­lat­er­al­ized and backed 1:1. Binance pre­vi­ous­ly said that its cor­po­rate hold­ings were record­ed in sep­a­rate accounts and should not form part of the proof-of-reserves calculations.

Genesis creditors file securities lawsuit against Barry Silbert and DCG

Cryp­to con­glom­er­ate Dig­i­tal Cur­ren­cy Group (DCG) is fac­ing more legal issues fol­low­ing the fil­ing of a new class action law­suit against its sub­sidiary Gen­e­sis Cap­i­tal. A group of Gen­e­sis cred­i­tors filed a law­suit against DCG and its CEO Bar­ry Sil­bert, alleg­ing vio­la­tions of secu­ri­ties laws by exe­cut­ing lend­ing agree­ments with secu­ri­ties with­out qual­i­fy­ing for an exemp­tion from reg­is­tra­tion under the fed­er­al laws. Gen­e­sis filed for Chap­ter 11 bank­rupt­cy on Jan. 19, and it expects to emerge from the pro­ceed­ings by May.

Winners and Losers

At the end of the week, Bit­coin (BTC) is at $23,129, Ether (ETH) at $1,600 and XRP at $0.41. The total mar­ket cap is at $1.06 tril­lion, accord­ing to CoinMarketCap.

Among the biggest 100 cryp­tocur­ren­cies, the top three alt­coin gain­ers of the week are Thresh­old (T) at 115.05%, Aptos (APT) at 86.22% and dYdX (DYDX) at 64.91%.

The top three alt­coin losers of the week are Hed­era (HBAR) at ‑7.72%, Decen­tra­land (MANA) at ‑7.71% and Mak­er (MKR) at ‑5.77%.

For more info on cryp­to prices, make sure to read Cointelegraph’s mar­ket analy­sis.

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Most Memorable Quotations

“With the help of blockchain tech­nol­o­gy, we can achieve med­ical advances so pow­er­ful and unde­ni­able that exist­ing sys­tems will have no choice but to change.”

Kei­th Comi­to, co-founder and pres­i­dent of Lifespan.io

“It’s very ear­ly days, but we con­tin­ue to believe that sta­ble­coins and cen­tral bank dig­i­tal cur­ren­cies have the poten­tial to play a mean­ing­ful role in the pay­ments space, and we have a num­ber of ini­tia­tives underway.”

Alfred F. Kel­ly, CEO of Visa

“Tra­di­tion­al­ly, peo­ple have looked to cen­tral­ized inter­me­di­aries or gov­ern­ments to solve this prob­lem, but tech­nol­o­gy like cryp­tog­ra­phy, blockchain and zero-knowl­edge proofs offer new solutions.”

Hes­ter Peirce, com­mis­sion­er of the U.S. Secu­ri­ties and Exchange Commission

“We’ve observed that insti­tu­tions and enter­pris­es are more open than ever before to work­ing with blockchain com­pa­nies to enhance their businesses.”

Paul Vera­dit­tak­it, gen­er­al part­ner at Pan­tera Capital

“We are see­ing the con­se­quences of the SEC’s pri­or­i­ties play out in real-time — at the expense of U.S. investors.”

Michael Son­nen­shein, CEO of Grayscale Investments

“Oth­er coins or oth­er tokens are being essen­tial­ly used as a store of val­ue for invest­ment and spec­u­la­tion. [There is a] good argu­ment that they should be treat­ed like a finan­cial product.”

Stephen Jones, assis­tant trea­sur­er and min­is­ter for finan­cial ser­vices for the Aus­tralian Parliament

Prediction of the Week 

Bitcoin will hit $200K before $70K ‘bear market’ next cycle — Forecast

After two weeks of ral­ly, Bitcoin’s price has large­ly been flat in the past sev­er­al days, show­ing that mar­ket par­tic­i­pants are not over­ly con­cerned in advance of the U.S. Fed­er­al Reserve, Euro­pean Cen­tral Bank and Bank of Eng­land mon­e­tary pol­i­cy deci­sions sched­uled for next week.

For many, BTC price action is still bound by Bitcoin’s four-year halv­ing cycles. The result­ing price pat­tern offers one “all time high year” in every four, with 2025 next in line. Accord­ing to pseu­do­ny­mous ana­lyst Trad­er Tardi­grade, also known as Alan, Bitcoin’s block sub­sidy halv­ing will occur a year pri­or and, from then on, the path will be open to a giant $200,000.

“#Bit­coin well-formed struc­ture with sto­chas­tic behav­ior indi­cates that the next ATH will be at 200K and next floor will be at 70K,” Alan predicted.

FUD of the Week 

Mango Markets sues Avraham Eisenberg for $47M in damages plus interest

Man­go Labs, the cre­ator of cryp­to trad­ing plat­form Man­go Mar­kets, filed a law­suit against Avra­ham Eisen­berg, seek­ing $47 mil­lion in dam­ages. It also asked the court to rescind an agree­ment between Eisen­berg and Mango’s decen­tral­ized autonomous orga­ni­za­tion. In Octo­ber 2022, Eisen­berg drained around $117 mil­lion from Man­go Mar­kets by manip­u­lat­ing the price of its native Man­go (MNGO) token, allow­ing under-col­lat­er­al­ized loans.

Argo Blockchain accused of misleading investors in class-action lawsuit

A class-action law­suit claims that cryp­to min­ing firm Argo Blockchain omit­ted key infor­ma­tion and made untrue state­ments dur­ing its ini­tial pub­lic offer­ing in 2021. The fil­ing alleged that the min­er failed to dis­close how sus­cep­ti­ble it was to cap­i­tal con­straints, elec­tric­i­ty costs and net­work dif­fi­cul­ties. It also claimed that a num­ber of doc­u­ments pre­sent­ed have been pre­pared neg­li­gent­ly, with inac­cu­rate or omit­ted information.

US Justice Department seizes website of prolific ransomware gang Hive

Inter­na­tion­al law enforce­ment groups have dis­man­tled the infa­mous Hive cryp­tocur­ren­cy ran­somware gang, recov­er­ing over 1,300 decryp­tion keys for vic­tims since July 2022 and pre­vent­ing $130 mil­lion in ran­somware pay­ments. Hive was behind a series of noto­ri­ous ran­somware inci­dents, such as the Cos­ta Rica pub­lic health ser­vice and social secu­ri­ty fund cyber­at­tack that occurred from April into May 2022.

Best Cointelegraph Features

The legal dangers of getting involved with DAOs

If you are a mem­ber of a DAO, you may not real­ize the legal dan­gers of being involved. Here’s what you need to know.

NFT creator: Amber Vittoria crushes it in her ‘Big Girl Pants’

Named on Forbes 30 under 30, Amber Vit­to­ria made a big splash in the tra­di­tion­al art world and has since embraced NFTs, col­lab­o­rat­ing with “The Hun­dreds,” “World of Women” and as MoonPay’s “artist in residence.”

Reformed ‘altcoin slayer’ Eric Wall on shitposting and scaling Ethereum

“There’s mul­ti­ple cryp­tocur­ren­cy com­mu­ni­ties who have me as their favorite hate object basi­cal­ly,” says cryp­to ana­lyst Eric Wall, for­mer­ly known as the ‘alt­coin slayer.’

Editorial Staff

Coin­tele­graph Mag­a­zine writ­ers and reporters con­tributed to this article.

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