Bankruptcy | ForkLog

ForkLog 10 20.09.2024

Terraform Labs Granted Liquidation Approval

On September 19, a bankruptcy court in Delaware approved the liquidation plan for the cryptocurrency firm Terraform Labs as part of its bankruptcy proceedings, according to Reuters. The judge endorsed the company’s bankruptcy plan, describing it as a “welcome alternative” to further litigation over investor losses. The decision follows an agreement between Terraform Labs and […]

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ForkLog 12 02.09.2024

SEC’s Intent to Challenge FTX Creditor Payments Sparks Outrage

On August 30, the SEC informed the U.S. Bankruptcy Court in Delaware of its intention to challenge payments to creditors of the defunct cryptocurrency exchange FTX, which are denominated in stablecoins. The relevant document has been published on the restructuring agent Kroll’s website. Source: Kroll. The latest proposed liquidation plan for FTX includes settling creditor […]

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ForkLog 15 30.08.2024

Legal Firms Reap Over $750 Million from Crypto Bankruptcies

Twenty-two law firms engaged in seven cryptocurrency company bankruptcies under Chapter 11 of the U.S. Code have requested or received fees totaling $751 million, according to Bloomberg Law. Journalists analyzed court documents and reported figures as of mid-August. Leading the pack were Sullivan & Cromwell, Kirkland and Ellis, White & Case, and Cleary Gottlieb, which […]

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ForkLog 17 27.08.2024

Celsius Bankruptcy Trustee Distributes $2.5 Billion to Creditors

The bankruptcy administrator of the lending platform Celsius has distributed two-thirds of the funds allocated to clients, according to CoinDesk. Payouts amounting to $2.53 billion (93% of the expected amount) have been made in digital assets and fiat currency, based on the exchange rate as of January 16. A total of 251,000 creditors have received […]

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ForkLog 21 27.08.2024

Bitcoin Miner Rhodium Files for Bankruptcy with Debts Up to $100 Million

Mining company Rhodium Enterprises has filed a bankruptcy petition under Chapter 11 of the U.S. Bankruptcy Code. The filing in a Texas court also includes six subsidiaries: Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW. According to the document, the firm’s debts range from $50 million to $100 million, with […]

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ForkLog 20 22.08.2024

FTX Creditors Endorse Reorganization Plan

FTX announced overwhelming support from creditors for the updated exchange reorganization plan. Preliminary data shows 95% of votes in favor, representing 99% of the claim amounts. Given these figures, the results are expected to surpass the Bankruptcy Code threshold for approval by the Delaware District Court. FTX will submit the final numbers to the court […]

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ForkLog 13 21.08.2024

Mt.Gox Transfers $784 Million in Bitcoin

The bankrupt cryptocurrency exchange Mt.Gox has transferred another 13,265 BTC ($784 million) to an unknown address, according to data from Arkham. Data: Arkham. The transactions were preceded by an internal transfer of 1,265 BTC between the platform’s wallets, with the funds sent to cold storage. The latest movements of Mt.Gox assets to external addresses, totaling […]

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ForkLog 24 13.08.2024

3AC Liquidators Demand $1.3 Billion from Terraform Labs

The bankruptcy managers of the cryptocurrency hedge fund Three Arrows Capital (3AC) have demanded at least $1.3 billion from Terraform Labs, the entity behind the Terra ecosystem, according to Bloomberg. Court documents reveal that the company “encouraged” 3AC to purchase native LUNA tokens and the algorithmic stablecoin TerraUSD (UST), manipulating markets to “artificially inflate asset […]

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ForkLog 11 08.08.2024

Court Approves $12.7 Billion Settlement Between FTX and CFTC

U.S. District Judge Peter Castel approved a settlement agreement between the CFTC, FTX, and Alameda Research, under which the exchange and its subsidiary will pay creditors $12.7 billion. The parties reached an agreement to settle the 20-month-long dispute on July 12. However, the decision awaited final approval, which Judge Castel granted on August 7. The […]

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ForkLog 13 18.07.2024

Mt.Gox Creditors Report Account Hacking Attempts

Clients of the defunct Mt.Gox exchange have taken to the subreddit r/mtgoxinsolvency to report widespread attempts by unknown parties to access their accounts on the platform. Some users speculate that the perpetrators are employing a brute force method. In all instances, two-factor authentication has thwarted the hackers. These reports emerged following the transfer of crypto […]

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ForkLog 17 17.07.2024

Expert Questions Impact of Mt.Gox Bitcoin Sales on Market

Concerns about potential sales of bitcoins distributed by the bankrupt exchange Mt.Gox are exaggerated, according to CryptoQuant’s founder and CEO, Ki Young Ju. MtGox FUD is overestimated. Market cap growth outpaces realized cap growth, showing strong demand. Since 2023, $224B in #Bitcoin sold, yet price up 350%. Even if MtGox’s $3B is sold on Kraken, […]

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ForkLog 14 17.07.2024

FTX and CFTC Reach $12.7 Billion Settlement Agreement

The bankrupt cryptocurrency exchange FTX and the CFTC have reached a $12.7 billion settlement following months of negotiations, as reported by The Block. Back in 2022, the CFTC accused former FTX CEO Sam Bankman-Fried and the affiliated Alameda Research of actions that led to customer losses of $8 billion. Initially, the agency pursued a claim […]

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