FTX bankruptcy Financial News

Now-defunct crypto exchange FTX is set to sell one of its Digital Custody Inc. (DCI) unit for a fraction of its original price.

An independent bankruptcy examiner must complete an investigation into the collapse of FTX, a federal appeals court ruled Friday.

The ongoing bankruptcy proceedings for crypto exchange FTX have led to major sell-offs from one of the largest bitcoin funds. According to a recent CoinDesk report, FTX’s bankruptcy estate sold 22 million shares in the Grayscale Bitcoin Trust (GBTC) fund, amounting to around $1 billion in outflows.

The ongoing saga following the dramatic collapse of Sam Bankman-Fried‘s bankrupt cryptocurrency exchange FTX took a major new turn with a Tuesday announcement detailing a global settlement between FTX Trading Ltd. and FTX Digital Markets Ltd.

According to a November 30 filing by FTX debtors, the IRS tax claims of $24 billion filed in early November are “completely unsubstantiated” and FTX has now requested that the claims be dismissed by the bankruptcy court.

Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam has stated that U.S. regulators lack the authority to preemptively prevent another major crypto collapse similar to the FTX incident.

Ross Rheingans-Yoo, an employee of FTX Foundation has filed a response to FTX’s claim regarding his unpaid salaries and bonuses totaling $275,000.

Wallets linked to bankrupt crypto firms Alameda Research and FTX moved over $10 million worth of cryptocurrency to a single wallet address, which then deposited the funds to exchange deposit accounts.

Fallen crypto exchange FTX is currently evaluating proposals from three prospective bidders seeking to restart the crypto trading platform, according to a recent Bloomberg report.

Customers of the now-bankrupt cryptocurrency exchanges FTX and FTX.US are looking forward to the possibility of reclaiming more than 90% of their assets as part of an amended proposal. 

According to a Wednesday report by digital assets platform Matrixport, the market value of bankruptcy claims against crypto exchange FTX has more than tripled this year. This comes ahead of the founder and CEO Sam Bankman-Fried's impending criminal trial set to begin next week.

Prominent media outlets, including Bloomberg, Dow Jones & Company, The New York Times, and The Financial Times, have raised objections to a joint motion by the debtors and the Official Committee of Unsecured Creditors asking for further data redactions in FTX bankruptcy case. 

FTX has reopened its customer claims portal, unfreezing user accounts that were affected by a cybersecurity incident in August.

In a major development today, FTX has received judicial approval to liquidate its cryptocurrency assets to repay its creditors. 

FTX received court permission on Friday to remove customer names from all filings in its bankruptcy case, persuading a US judge that publishing the names would put people at risk of scams and identity theft. US Bankruptcy Judge John Dorsey in Wilmington, Delaware, ruled that FTX can permanently redact the names of individual customers from its bankruptcy filings, after hearing testimony that publishing customers' names would place them at risk even if other identifying information like their email address was kept secret. «It is the customers who are the most important issue in this case,» Dorsey said. «We want to make sure that they are protected and they don't fall victim to any types of scams.» In January, Dorsey had allowed FTX to keep secret the names of 9 million of its individual customers for three months.

Nandan Nilekani, cofounder and non-executive chairman of Infosys, on Friday. He said incidents like the “fall of cryptocurrency exchange FTX in the United States” have shown that private cryptocurrencies aren’t a big threat. “Because of the rise of private cryptocurrencies, central banks are thinking of digital currencies backed by them — CBDCs (central bank digital currency),” Nilekani, who was speaking at the Bharat Inclusion Summit in Bengaluru, said. Explaining the use of CBDCs, Nilekani added, “So, why do they need it? For instance, on the wholesale side, especially cross-border settlement, these currencies can further reduce costs. But private crypto currency, I don’t see it as a threat.”

Bankrupt crypto exchange FTX said in a report to creditors on Tuesday that about $415 million in cryptocurrency had been stolen in hacks.

Crypto exchange FTX has recovered more than $5 billion but the extent of customer losses in its collapse is still unknown, an attorney for the bankrupt company founded by Sam Bankman-Fried said on Wednesday.

The Securities Commission of the Bahamas said on Thursday that it is holding FTX assets worth $3.5 billion based on market pricing at the time of transfer on a temporary basis to deliver them to customers and creditors who own them.

The crypto industry has suffered many booms and busts in its brief lifespan, but nothing like this. Sam Bankman-Fried, currently sitting in a Bahamian jail, has been accused by the US securities regulator of orchestrating a years-long fraud that diverted billions in customer funds from opaque and offshore exchange FTX to a now-bankrupt trading empire.

FTX bankruptcy filings in, French central bank wants quick regulation