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Genesis Global gets court approval to repay $3 billion to customers. Judge Sean Lane overruled an objection from Genesis parent company Digital Currency Group. DCG argued payments to be in US value of assets as of bankruptcy filing in January 2023. Genesis Global has secured court approval to return $3 billion in cash and crypto to its creditors, details in a recent court filing show. The payouts will represent about 77% of customers’ claims. However, the payout doesn’t include Digital Currency Group (DCG), the parent company of Genesis Global. The development comes after US Bankruptcy Judge Sean Lane approved the Chapter 11 bankruptcy plan Genesis Global and its subsidiaries filed in January 2023. Genesis’ bankruptcy followed the collapse of Three Arrows Capital and FTX in 2022. Judge overrules DCG objection As noted above, the plan to return billions of dollars worth of crypto assets and cash to Genesis creditors has received a node ...

Terraform Labs, the blockchain firm behind the notorious Terra ecosystem, has filed for bankruptcy in the U.S. a month after a court ruled that the firm violated the U.S. laws. In court documents filed on Jan. 21, the Singapore-based blockchain firm Terraform Labs disclosed liabilities ranging from $100 million to $500 million. Among the creditors holding the largest unsecured claims are Nansen CEO Alexander Svanevik of Standard Crypto and Ashley Swaren, a commercial lead at TokenTerminal Rasmus Savander. The filing will reportedly allow the firm to execute on its business plan while navigating ongoing legal proceedings, including “representative litigation pending in Singapore and U.S. litigation” involving the U.S. Securities and Exchange Commission (SEC), Terraform Labs said in a statement, according to Reuters. Following this news, the price of LUNA slid by over 5%, dropping to $0.62 according to CoinGecko data. You might also like: Crypto.com delists Terra ...

Bankrupt cryptocurrency lender Celsius Network revealed plans today to unstake its existing Ethereum holdings in preparation for prompt distributions to its creditors. On Jan. 5, the lending company Celsius that is currently embroiled in bankruptcy proceedings since its Chapter 11 filing in July 2022, declared the initiation of asset reallocation to secure sufficient liquidity ahead of potential distribution of funds back to creditors. In preparation of any asset distributions, Celsius has started the process of recalling and rebalancing assets to ensure ample liquidity — Celsius (@CelsiusNetwork) January 4, 2024 Celsius also announced plans to unstake its current holdings of Ether (ETH), which have been generating significant staking rewards income for the estate. The released Ethereum aims to cover various costs incurred during the restructuring and expedite distributions to creditors. The decision is seen as a positive development for Celsius customers, who have been ...

Ross Rheingans-Yoo, an FTX charity wing employee recruited by co-founder Sam Bankman-Fried, is seeking the remaining $275,000 of his alleged 2022 salary bonus . The attorneys for Ross Rheingans-Yoo stated in a legal document filed on Nov. 13 that FTX had only disbursed $375,000 of his entitled $650,000 bonus . They argue that the remaining amount was still owed when the cryptocurrency exchange went bankrupt in November 2022. This latest legal move is a response to FTX’s objection filed on Oct. 30. Documents shared by Rheingans-Yoo, including a Google Doc from FTX co-founder Sam Bankman-Fried, outlined his employment terms at the FTX Foundation, with a base salary of $100,000. Rheingans-Yoo maintains that he was not part of Bankman-Fried’s close circle and was unaware of any misappropriation of customer funds at FTX. His legal team stated, “Rheingans-Yoo was a faithful employee who found himself in a mess he did not create.” You might also like: FTX...

Hodlnaut’s interim judicial managers call FLEX token “illiquid” as its price crashed 90% since August 2023. Crypto bankruptcy claims exchange OPNX is unlikely to become the new owner of the embattled crypto lending firm Hodlnaut as its interim judicial managers rejected the takeover terms. According to a report by Bloomberg, Hodlnaut’s managers clarified that the $30 million offer in FLEX tokens will not happen as the exchange’s token is “illiquid” and with “speculative value.” Moreover, court filings show that most of Hodlnaut’s creditors also oppose the OPNX deal. You might also like: Dubai crypto regulator sends reprimand letter to OPNX founders The interim judicial managers added that OPNX’s offer includes no cash or “assets with similar liquidity” and no timetable for repayment. They say that there are no details on how exactly and when the exchange plans to pay beyond 30% of liabilities. ...

Voyager Digital, the crypto brokerage firm that filed for Chapter 11 bankruptcy almost a year ago, is preparing to reopen its app and enable customers to withdraw their funds. After a long wait, users can initiate withdrawals between June 20 and July 5. According to Paul Hage, the bankruptcy plan administrator, an update to the Voyager app on June 15 will display the available withdrawal amount, with the withdrawal period estimated to begin between June 20 and July 5. The court-approved bankruptcy plan, granted on May 17, will enable customers to initially recover 35.72% of their claims by withdrawing cryptocurrency through the Voyager app or receiving cash after a 30-day waiting period. You might also like: Crypto industry body slams banking restrictions in Australia Hage also highlighted in the filing that the bankrupt crypto hedge fund Three Arrows Capital still owes Voyager a substantial sum of $650 million. Therefore, after the initial distribution, efforts will ...

The deal was announced in April and approved by the bankruptcy judge on May 4. The Miami International Securities Exchange (MIAX), owned by Miami International Holdings, has completed the acquisition of LedgerX, which was one of the FTX assets court-approved for sale in January. LedgerX is an exchange and clearinghouse regulated by the United States Commodity Futures Trading Commission (CFTC).  The acquisition of LedgerX was “an important part of our growth strategy, expanding our ability to offer new and innovative products to the swaps and futures industry," CEO of Miami International Holdings (MIH) Thomas Gallagher said in a statement. MIAX is one of a suite of financial companies owned by MIH. Leslie Lamb, the CEO of OPNX, the cryptocurrency exchange founded by Three Arrows Capital (3AC) founders Kyle Davies and Su Zhu and Coinflex, claimed MIAX was an investor in that firm as well in an April 21 tweet. The parties entered into a purchase agreement for MIAX’s acquisition o...