Emails sent to relevant users indicate that the first phase of the repayment process will cover FTX Bahamas creditors under the “convenience class”, which includes claims under $50,000.

FTX Collapse and Repayment Process

FTX filed for bankruptcy in November 2022 following a liquidity crisis, which led to CEO Sam Bankman-Fried misappropriating customer funds to cover multi-billion-dollar losses at Alameda Research, its sister company. This collapse caused significant turmoil in the crypto market, resulting in massive losses for investors.

Now, as part of the bankruptcy process, affected customers will receive approximately 119% of the cash value of their deposits from two years ago.

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However, the repayment plan is based on crypto prices from November 2022. As a result, customers who held Bitcoin (BTC) and Ethereum (ETH) at the time will receive compensation reflecting values of around $20,000 and $1,200, respectively.

Solana Investors Among the Biggest Losers

The FTX collapse has had a particularly harsh impact on Solana (SOL) investors. When FTX filed for bankruptcy, Solana was trading at just $17. Today, Solana is trading above $200, meaning that many investors have missed out on significant gains.

This has caused frustration among customers who lost their crypto holdings, as the FTX repayment plan is based on past prices rather than current market values.

How Will FTX Repayments Affect the Crypto Market?

FTX’s repayment process could have a major impact on the cryptocurrency market. Since most payments will be made in cash, some investors may reinvest these funds back into crypto. This could lead to positive momentum for major cryptocurrencies like Bitcoin, Ethereum, and Solana.

However, if large investors decide to cash out instead of reinvesting, it could create selling pressure in the market.

In the coming days, how FTX creditors choose to use these funds will be one of the key factors shaping the market’s direction!

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The post FTX to Repay Creditors! Payment Date and Details Announced appeared first on Coin Engineer.

Allegations Against Waves and Aleksandr Ivanov

According to the claims, Alameda is seeking the return of $90 million in assets invested into the liquidity platform Vires.Finance in 2022. The lawsuit accuses Ivanov of manipulating the Vires platform and carrying out improper transactions during this process.

Alameda alleges that after depositing USDT and USDC stablecoins into the Vires platform, it intended to convert these assets into USDN. However, the lawsuit claims that Ivanov inflated the value of Waves while highlighting the platform’s profit potential and secretly moved funds out of Vires.

Initially, Ivanov cooperated with the creditors in the bankruptcy process but later suspended the efforts, which led to the legal actions from Alameda to reclaim its assets.

Market Impact

Alameda and FTX’s efforts to reclaim assets are not limited to Ivanov. Similar lawsuits have been filed against various individuals and organizations, including SkyBridge Capital, led by Anthony Scaramucci, Storybook Brawl game developers, and Deltec Bank President Jean Chalopin. These lawsuits aim to secure investors’ assets and minimize the damage caused by FTX’s bankruptcy process.

In the wake of these developments, the Waves token has seen a 0.3% decrease, after previously losing 30% of its value following its removal from the Binance platform. The impact of these lawsuits on the value of Waves and other tokens will be crucial for investors’ future expectations.

This lawsuit process may have broader implications, not just for Alameda and FTX’s ecosystem but also for the wider cryptocurrency market.

The post FTX and Alameda Research File $90 Million Lawsuit Against Waves! appeared first on Coin Engineer.

During the trial, where cameras, videos, and phone recordings were prohibited, the judge made a notable comment to Ellison: “In my 30-year career, I’ve seen many cooperators, but I’ve never seen anyone quite like Ms. Ellison.” Despite this remark, she received only a two-year prison sentence. According to Bloomberg reporters, Ellison was also ordered to return the profits she gained from her involvement in the FTX scandal.

Back in December 2022, Ellison cooperated with U.S. federal authorities, which played a key role in the charges brought against FTX founder Sam Bankman-Fried. At the time, she confessed to a series of crimes, including conspiracy to commit wire fraud, wire fraud against lenders, conspiracy to commit commodities fraud, securities fraud, and money laundering.

During the court proceedings, Ellison admitted she was fully aware that FTX had been using customer funds to cover Alameda’s debts. While her testimony was crucial in building the case against Bankman-Fried, Ellison still faced a prison sentence despite her cooperation.

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The post Former Alameda Research CEO Caroline Ellison Sentenced to Prison! appeared first on Coin Engineer.

Alameda Research now owns approximately 24 million WLD tokens, but only exchanged 205,387 WLD tokens for around $352,000. This action had no impact in changing the negative mindset because the WLD price sank to a new 52-week low of $1.30, a clear departure from prior levels.

WLD, with a 24-hour trading volume of $116.5 million, is now trading at around $1.65 depending on most current data. With a market value of $564.2 million, the Worldcoin represents the continuous depressing attitude of the market. With a reading of 38, the Relative Strength Index (RSI) remains in the oversold zone indicating ongoing sales activity. Besides, it is worth pointing out the bearish tone of the outlook is supported by the Chaikin Money Flow (CMF) with -0.10.

Other data derived from CoinGlass reveal that short sellers effectively dominate the market, given the financing rate of -0.040%. That is, long positions are more expensive than short ones – negative financing rate underlines the bearish sentiment.

Moreover displaying a decline in investor activity is Worldcoin’s Open Interest, which fell by around 2.07% to $125.95 million. The daily active addresses have also seen a downturn, suggesting reduced investor confidence, which has fueled the continuous price decline.

Should Worldcoin fall short of the $3 mark, it may suffer further negative effects and may collapse to the levels of $1.50 or maybe $1.00. Conversely, a move over the 20-day EMA might lead the momentum toward $2, followed by a likely short-term advance to $2.30.

The continuous development activity within the Worldcoin ecosystem indicates that the project remains growing albeit at a slower pace, despite the negative market conditions.

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The post Worldcoin (WLD) Faces New Lows as Bearish Sentiment Persists appeared first on Coin Engineer.

Court Approval for Settlement

United States District Judge Peter Castel formally authorized the $12.7 billion consent order, which FTX and Alameda signed into to settle a 20-month-long CFTC case in an Aug. 7 filing. First agreeing to the settlement on July 12, FTX and Alameda needed final court clearance, which was given on August 7.

The CFTC notably did not pursue a civil monetary penalty, so the whole $12.7 billion would be utilized to back-off FTX creditors.

Settlement Details

Alameda and FTX agreed to reimburse investors misled by founder Sam Bankman-Fried $8.7 billion as well as to wipe another $4 billion. The ruling further permanently forbids FTX and Alameda Research from ever purchasing or selling digital asset commodities on behalf of third parties, from deceiving commodity clients, from engaging in transactions involving digital asset commodities.

Taken over by bankruptcy specialist John Ray III, FTX identified the commodities regulator as the “most significant single creditor” in its continuous bankruptcy case. Claiming the company committed fraud and misled Alameda Research, its former CEO Sam Bankman-Fried, and FTX by presenting itself as a “digital commodity asset platform,” the CFTC sued both companies in December 2022

Future Steps for Creditor Payouts

Based on US dollar value of asset values at the time of FTX’s bankruptcy declaration in November 2022, the most recent version of the suggested FTX reorganizing plan would see a 118% return for 98% of its creditors—those with claims under $50,000.

But many FTX creditors have indicated that they would rather have a bitcoin dividend in-kind, which would consider the nearly 150% rise in overall market capitalization since FTX entered Chapter 11 protection. Right now, creditors are casting votes on their preferred payment method. They have until Aug. 16 to submit their claims; US Bankruptcy Court Judge John Dorsey will provide an official ruling on Oct. 7.

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The post FTX and Alameda Research to Pay Back $12.7 Billion to Creditors appeared first on Coin Engineer.

The FTX-Alameda bankruptcy estate opposed Jump Trading’s subsidiary Tai Mo Shan’s $264 million claim regarding the loan agreement related to Alameda Research, claiming that FTX lawyers were invalid because the loan never started.

Tai Mo Shan sought almost $264 million in damages from Alameda Research for the non-delivery of 800 million Serum (SRM) tokens resulting from a loan agreement dating back to August 2020. SRM is the native cryptocurrency of the FTX-backed decentralized exchange Serum, which collapsed in 2022 along with the FTX exchange.

According to court documents, Jump Trading calculated the loss using an options model; This model includes SRM’s market price at the bankruptcy filing date, the token’s implied volatility, redemption option price, and other factors.

FTX attorneys asked the court to deny this request, primarily because the loan was never granted by Alameda Research.

“It is an undisputed fact that Alameda did not deliver the cryptocurrency contemplated by the Loan Approval to the Master Loan Agreement. Therefore, the loan did not commence,” FTX lawyers said. “There is no provision in the Master Loan Agreement that allows Tai Mo Shan to force Alameda to deliver the cryptocurrency or seek monetary compensation for a loan that did not commence.”

They also called Jump Trading’s $264 million loss estimate “unfounded,” arguing that Tai Mo Shan’s loss calculation was “completely unsupportable.” Lawyers stated that Jump’s calculation using an “option model” was vague and did not clearly explain how it arrived at this amount.

FTX’s filing also argued that although Jump estimated losses based on the SRM price at the date of the bankruptcy filing, the loan agreement stipulated that the tokens would be issued to Tai Mo Shan in daily installments starting from August 1, 2023, and not at that date.

The application also alleged that Tai Mo Shan could be liable for the fraudulent transfer, which should be another factor to invalidate Tai Mo Shan’s claims. “The debtors believe that Tai Mo Shan may have been the recipient of some structured fraudulent transfers…including the alleged loan at issue here,” he said.

Meanwhile, FTX creditors have begun voting on a liquidation plan to provide compensation to exchange customers and have until August 16 to cast their votes. The exchange aims to receive final approval for the liquidation plan in October.

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The post FTX Lawyers Oppose Jump Trading’s $264 Million Damages Claims appeared first on Coin Engineer.

Based on people familiar with the topic, Bloomberg today said the company is discussing a possible IPO with advisers and intends to start a pre-IPO capital round maybe in the next few weeks.

Since April’s bitcoin halving, which cut bitcoin mining incentives by 50%, many bitcoin mining companies are trying to increase profits and mining capacities; therefore, GDA’s plan is much-needed.

Investing roughly $1.15 billion in GDA in 2022, Alameda Research, the defunct sister trading company of the insolvent FTX exchange, raised the worth of the mining firm to $5.5 billion at the time.

According to its website, the mining company, with a total power capacity of more than 500 megawatts, runs over 20 mining facilities throughout four continents, including those in Texas, North Carolina, and South Carolina.

GDA opened a mining center in Argentina in May and revealed in April a new Texas plant with roughly 36 MW of overall power capacity.

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The post Genesis Digital Eyes U.S. IPO Amid Market Surge appeared first on Coin Engineer.

The Spot On Chain team noted that FTX and Alameda Research have deposited a total of 20,350 Ethereum ($72.5 million) to cryptocurrency exchanges since March 1, and that this has generally coincided with periods before prices start to fall.

An example of this was seen on April 12, when 15,850 ETH was withdrawn from FTX and Alameda wallets before the Ethereum price started to fall.

The post Could Be Bearish News for Ethereum: Keep an Eye on FTX and Alameda Transactions! appeared first on Coin Engineer.

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The two companies have sold a total of $713 million in crypto since October 2023. Despite the sales, FTX and Alameda still hold significant investment assets, totaling $1 billion. The future actions of these companies and their remaining assets are worth watching.

Details:

• Alameda Research transferred 3.6 million USD worth of crypto to various exchanges, including Coinbase (2.5 million USD in ETH), FalconX, and Wintermute (1 million USD in TON).
• FTX and Alameda have sold a total of 713 million USD worth of crypto since October 2023, including ETH, SOL, and AVAX.
• The companies still hold significant investment assets, with FTX at 631 million USD and Alameda at 321 million USD, totaling 1 billion USD.
• Notable assets held by FTX include FTT (448.64 million USD), TON (14.10 million USD), and BOBA (21.41 million USD).
• The motivations behind these asset sales and future plans of the companies remain unclear.

Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube and Twitter for the latest news and updates.

The post FTX and Alameda Research Resume Selling Assets appeared first on Coin Engineer.

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According to data from Arkham Intelligence, between January 8 and 12, Celsius transferred $95.5 million to Coinbase and $29.7 million to FalconX.

However, Celsius still holds more than 550,000 ETH on its books; this number was worth a staggering $1.36 billion at the time of publication.

On January 5, Celsius moved to redeem 206,300 ETH worth $407 million at the time; the lender claimed that the newly released Ether would be used to pay for costs incurred during the restructuring process and to prepare for repayments to creditors.

Celsius has announced that it will distribute Bitcoin and ETH to creditors in its rescue plan, but a specific date on when creditors will begin receiving funds has not yet been announced.

Celsius creditors have been waiting for more than 18 months to receive funds that remained on the platform since the company first filed for bankruptcy in July 2022.

FTX and Alameda Transfer Funds to Exchanges (Celsius)

Celsius was not the only beleaguered firm to move cryptocurrency assets to exchanges recently.

According to data from blockchain analytics platform SpotOnChain, bankrupt cryptocurrency exchange FTX and its defunct trading arm Alameda Research made their own move by transferring $28 million worth of crypto to exchanges on January 14.

The transfers to the Coinbase and Binance exchanges included $18.7 million worth of Wrapped Bitcoin, $8 million worth of Ether, and $1 million worth of Pendle (PENDLE).

After FTX and Alameda Research filed for bankruptcy in November of last year, FTX has been working to raise funds for creditor repayments. FTX executives have successfully recovered approximately $7 billion in assets, including a significant amount of cryptocurrency worth $3.4 billion.

The market has warmed to FTX creditors’ demands; some of them have risen as high as $0.50 per dollar in October of last year, suggesting that creditors have a chance to become whole. While it is unclear when FTX will make repayments to its customers, current plans call for repayments to begin this year.

The post Celsius Transfers $125 Million Worth of ETH to Exchanges! appeared first on Coin Engineer.