Tag: FTX

FTX Reaches $45M Deal to Sell Interest in Sequoia to Abu Dhabi’s Investment Arm

CryptoX – Cryptocurrency Analysis and News Portal The agreement could be closed as soon as March 31, though deals made by bankrupt companies are subject to close judicial scrutiny. The would-be buyer, Al Nawwar Investments RSC Limited, is ultimately owned by the government of Abu Dhabi, and already invests in Sequoia, the document said. Original Source The post FTX Reaches $45M Deal to Sell Interest in Sequoia to Abu Dhabi’s Investment Arm appeared first on CryptoX. CryptoX Portal

Judge refuses to consolidate class-action lawsuits against FTX

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A federal judge has refused to consolidate several proposed class-action lawsuits against the FTX exchange by investors. According to the judge, the exchange and its defendants have not yet been heard.  Excerpt from the order denying the motion to consolidate. Source: Law360 On March 8, United States District Judge Jacqueline Scott Corley laid down the order that denied plaintiffs a request to consolidate five proposed class-action lawsuits against the bankrupt crypto exchange. Despite no defendants opposing the motion, the judge pointed out that not all defendants had the opportunity to respond…

FTX counsel and advisors rake in $34M in January

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The law firms, investment banks and consulting companies working with FTX on its bankruptcy case billed the crypto exchange a combined $34.18 million in January, court documents reveal. FTX’s chief restructuring officer and new CEO, John J. Ray III, also received a hefty pay package, charging $1,300 an hour to a total of $305,000 in February according to a Mar. 6 filing. Fee breakdown of FTX CEO John J. Ray III over the month of February. Source: Kroll Separate court filings on Mar. 6 show United States law firms Sullivan…

FTX Sues Grayscale In a Move to Unlock $9B of Shareholder Value

In the lawsuit, FTX said that Grayscale has been charging exorbitant management fees. They noted that “Grayscale’s actions have resulted in the Trusts’ shares trading at approximately a 50% discount to Net Asset Value”. In the latest development bankrupt crypto exchange FTX is suing the world’s largest crypto asset manager Grayscale Investments. The lawsuit comes from FTX’s sister company Alameda Research to seek injunctive relief to FTX debtors to realize more than $250 million in asset value. As per the press release, Alameda Research has filed the lawsuit in the…

US trustee appeals FTX bankruptcy judge’s ruling to deny appointment of independent examiner

Lawyers for Andrew Vara, the United States Trustee representing the interests of the Department of Justice in crypto exchange FTX’s bankruptcy proceedings, has filed an appeal against a federal judge’s denial of a motion appointing an independent examiner in the case. In a March 6 filing in U.S. Bankruptcy Court for the District of Delaware, the legal team petitioned to have the U.S. District Court consider an appeal for a February ruling from Judge John Dorsey. The federal judge said in a Feb. 15 hearing that he would deny a…

FTX Bankruptcy Examiner Denial Appealed by U.S. Government

The U.S. Trustee, a branch of the Department of Justice (DOJ), had previously argued that bankruptcy law requires an independent probe for any case of such magnitude, despite warnings that it could cost as much as $100 million. In its arguments, the Trustee said an independent examiner could look into whether those responsible for mismanagement at FTX are still part of the company. Source

US Prosecutors Seek to Further Restrict Former FTX CEO Sam Bankman-Fried’s Internet Access – Bitcoin News

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The U.S. attorney for the Southern District of New York (SDNY), Damian Williams, and the Department of Justice (DOJ) are requesting “proposed modifications” to the bail conditions of former FTX CEO, Sam Bankman-Fried. The SDNY prosecutor is asking the court to prohibit Bankman-Fried from using a smartphone with an internet connection. Instead, the disgraced FTX co-founder would receive a government-issued flip phone with disabled internet capabilities. Bankman-Fried May Get a Flip Phone With Strings Attached On March 3, 2023, the DOJ and SDNY attorney Damian Williams filed a request with…

Fears over Silvergate, $8B hole at FTX, senators seek Binance’s numbers: Hodler’s Digest, Feb. 26 – March 4

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Delay in Silvergate’s financials sparks fears over bankruptcy, FTX reports $8.6B deficit and Binance’s balance sheet sought by U.S. senators. Top Stories This Week Silvergate stock plunges after delayed filing raises doubts over future Silvergate made headlines this week after postponing the filing of its annual 10-K financial report, raising fears of an upcoming bankruptcy filing. The collapse of the cryptocurrency bank could prove costly for the rest of the industry. Within 24 hours after the announcement, Coinbase, Circle, Bitstamp, Galaxy Digital and Paxos confirmed that they will scale back…

FTX Debtors Report $8.9B Shortfall in Customer Funds and ‘Highly Commingled’ Assets in Latest Presentation – Bitcoin News

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On March 2, 2023, FTX debtors released their second stakeholder presentation, which contains a preliminary analysis of the now-defunct cryptocurrency exchange’s shortfalls. The latest presentation reveals a significant shortfall, as approximately $2.2 billion of the company’s total assets were found in FTX-related addresses, but only $694 million is considered “Category A Assets,” or liquid cryptocurrencies such as bitcoin, tether, or ethereum. In addition, John J. Ray III, FTX’s current CEO, stated that the debtor’s effort had been significant, and he added that the exchange’s assets were “highly commingled.” A Preliminary…