Crypto Lender Celsius to Hold Vote on Asset Sale Plan to Fahrenheit Consortium, Creditors Could Recover 67%-85% of Holdings
Crypto lender Celsius, which filed for bankruptcy last year, has received approval from a judge to hold a vote on its plan to sell assets to the Fahrenheit consortium. The plan would see creditors recover between 67% and 85% of their holdings, with returns largely being made in bitcoin and ether.
Voyager Sells Millions Worth of Crypto Assets, Including 1.4 Trillion SHIB, on Coinbase Amid Bankruptcy Process: On-Chain Data
Crypto lender Voyager is selling off its Shiba Inu holdings as it liquidates millions of dollars worth of assets on Coinbase. The company has sold 49 different tokens on the platform, with Shiba Inu making up almost 23% of the total sale.
Bankrupt FTX seeks to exclude Dubai unit from US wind-down proceedings
Crypto exchange FTX, which filed for bankruptcy in the US last November, is seeking to exclude its Dubai unit from the wind-down proceedings. FTX Dubai, which was set up in February 2022 and is owned by the company's European arm, did not conduct any business prior to the bankruptcy filing in the UAE. The estate argues that FTX Dubai is balance sheet solvent and a voluntary liquidation procedure in accordance with UAE laws would allow for a timely distribution of the positive cash balance after payment of all outstanding liabilities and liquidation of all assets. A hearing on the matter is scheduled for Aug. 23.
Co-Founder of Three Arrows Capital Claims He Doesn’t Have To Answer to US Courts
Kyle Davies, co-founder of collapsed crypto hedge fund Three Arrows Capital, has claimed that he renounced his American citizenship and therefore does not need to answer to US courts. In court documents filed on Tuesday, Davies said he became a permanent resident of Singapore in 2017 and renounced his American citizenship when he got married, as Singapore doesn’t allow dual citizenship.
Voyager Digital Customer Data Reportedly Hacked During Bankruptcy Proceedings
Former clients of Voyager Digital, the bankrupt cryptocurrency lender that collapsed in 2022, may have had their personal information compromised during the company's lengthy bankruptcy proceedings. According to Tree News, customer details were leaked. Voyager was one of the high-profile victims of the terraUSD (UST) crash, which was the first major domino to fall during crypto's nightmare year. Following 3AC's failure to repay the loans, Voyager suspended "trading, deposits, withdrawals, and loyalty rewards" on July 1, and the company filed for Chapter 11 bankruptcy protection just four days later. Voyager Digital had 3.5 million users and $5.9 billion in assets at its peak, with almost all of its users being retail investors with less than $10,000 USD on the platform.
FTX Sues Founder and Former Executives for Alleged $1B Misappropriation
FTX Trading has filed a lawsuit against its founder, Sam Bankman-Fried, and other former executives for allegedly misappropriating $1 billion before the company's bankruptcy. The complaint accuses the defendants of using the funds to finance personal projects and a luxurious lifestyle, resulting in one of the largest financial frauds. The fraudulent transfers reportedly occurred between February 2020 and November 2022, and FTX is seeking to recover more than $725 million.
FTX Sues Founder and Former Executives for Alleged Misappropriation of Funds
FTX Trading Ltd has filed a lawsuit against its founder Sam Bankman-Fried and other former executives, accusing them of misappropriating hundreds of millions of dollars before the cryptocurrency exchange went bankrupt.
Defunct crypto exchange FTX and sister firm Alameda seek to retrieve $71 million from FTX Foundation and life science entities
FTX and Alameda have filed court documents seeking to recover over $71 million from the FTX Foundation and other life science entities. The bankrupt firm is attempting to retrieve funds for its customers, following previous attempts to recover $700 million from FTX founder Sam Bankman-Fried and $323 million from the leadership team of the exchange's European arm. Lawyers argue that the FTX Foundation and Latona made transfers to life science companies under the guise of effective altruism, but in reality, Bankman-Fried pursued these transactions to generate goodwill and political influence for himself. Additionally, the Metropolitan Museum of Art has agreed to return $550,000 in donations received from FTX.
Ripple's XRP Security Ruling Unlikely to Affect Bankrupt Crypto Lender Celsius' Wind-Up Plans, Says Counsel
The recent ruling that XRP is a security is unlikely to affect the wind-up of bankrupt crypto lender Celsius, according to the lender's counsel. The new company set to take over Celsius is not engaged in securities offerings or any of Celsius' historic business practices. The Fahrenheit consortium, which won a recent bid for Celsius' assets, will focus on less legally contentious issues like bitcoin mining and Ethereum staking.
BlockFi Allegedly Attempted to Convert $239 Million of Customer Crypto into Fiat to Avoid Liability, Investigation Finds
BlockFi is accused of attempting to convert $239 million of customer crypto into fiat to avoid liability after FTX filed for bankruptcy in 2022, according to a report by BlockFi's committee of unsecured creditors.
