FTX Creditor List, BlockFi Exposure $1.2B & New Celsius Token...

Top news this week

FTX’s creditor list shows airlines, charities and tech companies caught in collapse

The full list of creditors to which bankrupt cryptocurrency exchange FTX owes money has been released, revealing a wide range of global companies. Potential creditors include airlines, hotels, charities, banks, venture capital firms, media outlets, and crypto firms, along with US and international government agencies. According to another headline on the FTX scandal, US federal prosecutors allege that Sam Bankman-Fried invested $400 million in venture capital firm Modulo Capital with money from FTX clients. Investigators allege that Modulo was likely built with criminal proceeds or embezzled funds. Lawyers’ costs in the case are estimated to reach hundreds of millions of dollars before the company’s bankruptcy investigation is complete.

BlockFi Uncensored Financials Reportedly Shows $1.2B FTX Exposure

Bankrupt crypto lending firm BlockFi mistakenly uploaded uncensored financial data, revealing $1.2 billion in assets tied to bankrupt exchange FTX and defunct trading firm Alameda Research. The unredacted filings show that, as of January 14, BlockFi had $415.9 million in assets tied to FTX and a whopping $831.3 million in loans to Alameda. BlockFi filed for Chapter 11 bankruptcy on November 28, citing the collapse of FTX just weeks before as the cause of its financial woes.

New ‘Celsius token’ can be used to pay creditors

Bankrupt crypto lending firm Celsius may issue its own token to pay off creditors. In a court hearing, Celsius’ attorney, Ross M. Kwasteniet, said the firm is negotiating with its creditors how to relaunch the platform and pay them properly. If approved by creditors and the court, the relaunched version would be “a properly licensed, publicly traded company,” which is expected to provide creditors with more money than simply liquidating the company.

Binance guarantees token and user funds in the same wallet due to ‘mistake’

Cryptocurrency exchange Binance admitted to mistakenly storing some customer funds in the same wallet with its collateral for Binance-minted tokens, or B-Tokens. The exchange has already started the process of transferring assets to dedicated collateral wallets and emphasized that B-Tokens are always fully collateralized and backed 1:1. Binance previously said that its corporate holdings were recorded in separate accounts and should not be part of the test reserve calculations.

Genesis Creditors File Securities Lawsuit Against Barry Silbert and DCG

Cryptocurrency conglomerate Digital Currency Group (DCG) is facing further legal trouble following the filing of a new class action lawsuit against its subsidiary Genesis Capital. A group of Genesis creditors filed a lawsuit against DCG and its CEO, Barry Silbert, alleging violations of securities laws by executing securities lending agreements without qualifying for an exemption from registration under federal law. Genesis filed for Chapter 11 bankruptcy on January 19 and expects to emerge from the process in May.

Winners and losers

At the end of the week, Bitcoin (BTC) I sat down $23,129Ether (ETH) a $1,600 Y XRP a $0.41. Total market capitalization is $1.06 trillion, according to to CoinMarketCap.

Among the largest 100 cryptocurrencies, the top three altcoin gainers of the week are Threshold (T) at 115.05%, Aptos (SUITABLE) at 86.22% and dYdX (DYDX) at 64.91%.

The top three altcoin losers of the week are Hedera (HBAR) to -7.72%, Decentraland (MANNA) to -7.71% and Maker (MKR) at -5.77%.

To learn more about cryptocurrency prices, be sure to read Cointelegraph’s market analysis.

most memorable quotes

“With the help of blockchain technology, we can make medical breakthroughs so powerful and undeniable that existing systems will have no choice but to change.”

keith comitoco-founder and president of Lifespan.io

“It is very early days, but we continue to believe that stablecoins and central bank digital currencies have the potential to play a significant role in the payments space, and we have a number of initiatives underway.”

Alfred F. KellyVisa CEO

“Traditionally, people have looked to centralized intermediaries or governments to solve this problem, but technology like cryptography, blockchain, and zero-knowledge proofs offer new solutions.”

hester peircecommissioner of the US Securities and Exchange Commission

“We have observed that institutions and companies are more open than ever to working with blockchain companies to improve their business.”

Paul Veradi JacketsGeneral Partner of Pantera Capital

“We are seeing the consequences of the SEC’s priorities in real time, at the expense of US investors.”

michael sonnensteinGrayscale Investment CEO

“Other currencies or other tokens are essentially used as a store of value for investment and speculation. [There is a] good argument that they should be treated as a financial product.”

esteban jonesAssistant Treasurer and Minister for Financial Services of the Australian Parliament

prediction of the week

Bitcoin Will Hit $200K Before Next $70K ‘Bear Market’ Cycle – Forecast

After two weeks of rallying, the Bitcoin price has been largely flat in recent days, showing that market participants are not overly concerned about the US Federal Reserve’s monetary policy decisions. , the European Central Bank and the Bank of England scheduled for next week.

For many, BTC’s price action is still subject to Bitcoin’s four-year halving cycles. The resulting price pattern offers one “all-time high year” in four, with 2025 next in line. According to pseudonymous analyst Trader Tardigrade, aka Alan, the Bitcoin block subsidy halving will happen a year early, and from then on, the road will be open to a behemoth of $200,000.

“The well-formed structure of #Bitcoin with stochastic behavior indicates that the next ATH will be at 200K and the next bottom will be at 70K,” Alan predicted.

FUD of the week

Mango Markets sues Avraham Eisenberg for $47 million in damages plus interest

Mango Labs, the creator of the Mango Markets cryptocurrency trading platform, has filed a lawsuit against Avraham Eisenberg, seeking $47 million in damages. He also asked the court to terminate an agreement between Eisenberg and Mango’s decentralized autonomous body. In October 2022, Eisenberg extracted around $117 million from Mango Markets by manipulating the price of its native Mango (MNGO) token, allowing for uncollateralized lending.

Argo Blockchain Accused of Misleading Investors in Class Action Lawsuit

A class action lawsuit claims that crypto mining firm Argo Blockchain omitted key information and made false statements during its 2021 initial public offering. The filing alleged that the miner failed to disclose how susceptible it was to capital restrictions, electricity costs and hardships. of the network. It also alleged that a number of documents submitted have been prepared negligently, with inaccurate or omitted information.

US Department of Justice seizes website of prolific ransomware gang Hive

International law enforcement groups have dismantled the infamous Hive cryptocurrency ransomware gang, recovering more than 1,300 decryption keys for victims since July 2022 and preventing $130 million in ransomware payments. Hive was behind a series of high-profile ransomware incidents, including the cyberattack on the Costa Rican public health service and social security fund that occurred between April and May 2022.