Bankrupt crypto Financial News

crypto exchange FTX can sell and invest its crypto holdings worth over $3.4 billion to pay back creditors, a US judge has ruled. Judge John Dorsey in the US Bankruptcy Court for the District of Delaware approved the motion and overruled objections opposing the plan, reports Coindesk. FTX holds $1.16 billion of solana crypto tokens — approximately 16 per cent of the token's outstanding supply — and about $560 million in Bitcoin. The rest of its holdings consist of lesser known illiquid tokens.

Bankrupt crypto trading platform Bittrex, which ceased U.S. operations earlier this year, will pay $24 million to settle U.S. Securities and Exchange Commission (SEC) charges for running an unlicensed exchange, broker, and clearing agency.

Alex Mashinsky, the founder and former chief of the now-bankrupt cryptocurrency lender Celsius Network, must face a lawsuit by New York Attorney General Letitia James accusing him of civil fraud, a Manhattan state court judge ruled on Friday. Justice Margaret Chan said the attorney general sufficiently alleged that Mashinsky defrauded investors by touting Celsius as a safe alternative to banks and concealing its risks, including hundreds of millions of dollars of investment losses. Chan also said James could pursue some claims under the Martin Act, a powerful state securities law, and that the «earned interest accounts» that Celsius offered customers qualified as securities under state law.

Bankrupt digital asset exchange FTX has filed a motion to exclude its Dubai entity from the ongoing bankruptcy proceedings in the United States. 

Mediation between bankrupt cryptocurrency lender GenesisGlobal Holdco and creditors is set to conclude by August 16, but a deal is yet not certain. 

Alex Mashinsky, the former CEO of bankrupt crypto lender Celsius, has been arrested, as he and his company faces lawsuits from U.S. financial regulators.

The former CEO of bankrupt crypto lender Celsius Network Ltd., Alex Mashinsky, has been charged with fraud by the U.S. Department of Justice (DoJ) and sued by three regulatory agencies over the company's collapse.

Investing.com -- The bankrupt cryptocurrency lender Celsius Network has been fined $4.7 billion and permanently banned from handling consumers' assets by U.S. trade regulators, while three of its former executives were charged with duping into transferring their digital tokens into the platform.

Arrows Capital sold for about $2.5 million. Of the tokens, «Fidenza #725,» an image with graphic dashes and curves in a muted palette of cream, yellow, pink and black, fetched the highest price at over $1 million. Three Arrows Capital purchased it for 135 ether in 2021, equal to about $341,786 at the time, according to DappRadar. The auction was part of liquidating Three Arrows, according to a February memo from Teneo, one of the court-appointed liquidators. Singapore-based Three Arrows was the first major crypto firm to go bankrupt in 2022, brought down by the collapse of cryptocurrencies Luna and TerraUSD. It filed for bankruptcy in the British Virgin Islands in late June 2022.

The auction for parts of bankrupt Singaporean cryptocurrency hedge fund Three Arrows Capital’s (3AC) nonfungible tokens (NFT) collection fetched $2.5 million at its conclusion on May 19.

Crypto lender Voyager Digital said Wednesday that customers will soon recover about 35% of their cryptocurrency deposits as the company winds down operations after a failed buyout attempt by crypto exchange Binance.US. U.S. Bankruptcy Judge Michael Wiles approved Voyager's liquidation plan at a court hearing in Manhattan, allowing the company to return about $1.33 billion in crypto assets to customers and end its efforts to reorganize under Chapter 11. Customers may be able to make withdrawals by June 1, Voyager's official creditors committee said. Any distribution beyond the initial 35% would depend on the result of future litigation. Voyager filed for bankruptcy protection in July, citing volatility in cryptocurrency markets and a default on a large loan made to crypto hedge fund Three Arrows Capital (3AC).

The now-bankrupt crypto lender Celsius Network may get a second chance with the help of Wall Street investment giants.

According to a May 8 post by Miller Thomson, the law firm representing users of the defunct cryptocurrency exchange QuadrigaCX, interim distribution of funds tied to bankruptcy proceedings will be scheduled "in the coming weeks."

Apollo Global Management is reportedly part of a bid by crypto investment firm NovaWulf to acquire the bankrupt crypto lender Celsius Network. 

Tribe Capital, the San Francisco-based venture capital firm that previously invested in FTX before its collapse, is exploring the possibility of injecting new capital to revive the bankrupt cryptocurrency exchange, Bloomberg reported on April 18.

FTX has recovered over $7.3 billion in cash and liquid crypto assets, an increase of more than $800 million since January, the company's attorney said on Wednesday at a U.S. bankruptcy court hearing in Delaware. FTX attorney Andy Dietderich said the company is starting to think about its future after months of effort devoted to collecting resources and figuring out what went wrong under the leadership of indicted ex-founder Sam Bankman-Fried. Bankman-Fried has pleaded not guilty. «The situation has stabilized, and the dumpster fire is out,» Dietderich said. FTX has benefited from a recent rise in crypto prices, Dietderich said. Its total recovery would be valued at $6.2 billion based on crypto prices from November 2022, when it filed for bankruptcy after traders pulled $6 billion from the platform in three days and rival exchange Binance abandoned a rescue deal.

Bankrupt crypto lender BlockFi has $227 million in uninsured funds stuck in an account maintained by failed lender Silicon Valley Bank.

Bankrupt crypto lender BlockFi has made headlines with its latest bankruptcy filing, revealing that it has $227 million invested in a money market mutual fund offered by Silicon Valley Bank (SVB).

The bankrupt cryptocurrency lender, Celsius Network, is reportedly pursuing more bids and exploring new buyers despite having an offer on the table. 

Digital asset investment firm Novawulf Digital Management has reached a deal with crypto lender Celsius to buy its lending operations and help bring an end to its bankruptcy case.

Bankrupt crypto exchange FTX, along with its linked businesses, owes its 50 biggest unsecured creditors a total of $3.1 billion, according to court documents.