Bankruptcy
QuadrigaCX Bankruptcy Trustee Announces Interim Distribution of Funds
QuadrigaCX's bankruptcy trustee, Ernst & Young, has announced an interim distribution of funds to the exchange's creditors. The announcement was made in consultation with estate inspectors, and a Notice to Affected Users will be posted soon with further details. However, some affected users may receive a Notice of Disallowance of Claim, with the right to appeal.
QuadrigaCX Users to Receive Interim Distribution
Users of defunct cryptocurrency exchange QuadrigaCX will receive interim distribution of funds tied to bankruptcy proceedings in the coming weeks. A small number of affected users may receive a Notice of Disallowance of Claim, with the right to appeal. QuadrigaCX owes affected clients an estimated $160 million and trustee Ernst & Young has recovered $34.3 million worth of assets.
OKX Sends $60M to Alameda Research
Crypto exchange OKX sent $60M worth of digital assets to Alameda Research as part of a recovery effort to pay back customers of its sister company FTX. Alameda Research currently holds over $284M worth of assets, including USDT and ETH.
Celsius Creditors Seek Help from Bankruptcy Judge to Uncover Potential Market Manipulation
Celsius creditors are requesting subpoenas to uncover suspicious trades of CEL token on FTX between April and August 2022, seeking to determine if they were legitimate or constituted market manipulation. This information could be crucial in resolving disputes related to Celsius' bankruptcy. Meanwhile, FTX is pending approval to sell LedgerX for approximately $50 million.
Genesis Capital's Settlement Disrupted by Creditors
Digital currency company Genesis Capital's settlement process has been disrupted by creditors, raising concerns about the timing of the process. Genesis' parent company, Digital Currency Group (DCG), has filed a motion for mediation, citing renewed demands from creditors.
OPNX Reveals Venture Capital Backers
OPNX, a new exchange allowing traders to buy and sell claims against bankrupt firms, has revealed its venture capital backers, including AppWorks, Susquehanna, DRW, MIAX Group, China Merchant Bank International, and Token Bay Capital. The exchange has faced criticism due to its association with the bankrupt 3AC hedge fund, but the company claims it will help make customers of failed crypto ventures whole again.
BlockFi Granted Extension to Submit Bankruptcy Exit Plan
BlockFi, a cryptocurrency lender, has been granted a 48-day extension until May 15 to submit a bankruptcy exit plan. The company is exploring a potential sale of assets or an outside backer to support a restructuring deal. A committee of BlockFi customers argued to take control of the case, citing the lack of a workable business for reorganization and the potential sale of the platform. However, the bankruptcy judge granted a shorter extension than requested by BlockFi.
Celsius Network Considers Legal Action Against Crypto Blogger
Celsius Network is considering taking legal action against crypto blogger Tiffany Fong for leaking internal information regarding the company’s bankruptcy case. Fong has been reporting on the bankruptcy case via YouTube and social media platforms, sharing leaked internal information allegedly provided to her by disgruntled former Celsius employees.
Media Outlets Object to Withholding Identities in FTX Bankruptcy Proceedings
Major media outlets have objected to the withholding of non-US customer identities during FTX's bankruptcy proceedings, citing the public's right to access bankruptcy filings. FTX and its customers have failed to justify the need for such secrecy, according to the media outlets.
FTX Future Fund Shut Down Following Exchange's Collapse
FTX Future Fund, the philanthropic arm of FTX exchange, has shut down following the exchange's collapse in November 2022. The fund had pledged $1 billion in donations toward research academics across prestigious universities, but the team behind the project resigned after FTX filed for bankruptcy. Many scholars and researchers who were early recipients of the grant are now stuck in limbo over payment of further grants for their programs.