Top stories this week
The complete list of creditors Money owed by bankrupt cryptocurrency exchange FTX has been released, revealing a wide range of global businesses. Potential creditors include airlines, hotels, charities, banks, venture capitalists, media and crypto companies, as well as US and international government agencies. According to another headline regarding the FTX scandal, US federal prosecutors allege that Sam Bankman-Fried has 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. The attorney’s fees in the case are estimated at hundreds of millions of dollars before the end of the investigation into the company’s bankruptcy.
BlockFi Uncensored Financial Data Reportedly Shows $1.2 Billion 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 documents show that as of January 14, BlockFi had $415.9 million in FTX-linked assets and $831.3 million in Alameda loans. BlockFi filed for Chapter 11 bankruptcy on November 28, citing the collapse of FTX a few weeks earlier as the cause of its financial troubles.
New ‘Celsius token’ can be used to repay creditors
Celsius, bankrupt crypto credit company can issue its own token to repay creditors. During a court hearing, Celsius attorney Ross M. Kwasteniet said the company was negotiating with its creditors on how to relaunch the platform and repay them adequately. If approved by creditors and the court, the revived version would be “a duly licensed publicly traded company”, which should provide creditors with more money than by simply liquidating the company.
Binance cryptocurrency exchange admitted to mistakenly storing client funds in the same wallet with its collateral for Binance-issued tokens, or B-Tokens. The exchange has already started the process of transferring assets to dedicated collateral wallets and highlighted that B-Tokens are still fully collateralized and backed 1:1. Binance previously said that its corporate holdings are registered in separate accounts and should not be part of proof of reserve calculations.
Crypto conglomerate Digital Currency Group (DCG) is facing more legal problems following the filing of a new class action lawsuit against its subsidiary Genesis Capital. A group of Genesis creditors has filed a lawsuit against DCG and its CEO Barry Silbert, alleging violations of securities laws by executing loan agreements with securities without benefiting from an exemption from registration under federal laws. Genesis filed for Chapter 11 bankruptcy on January 19, and it expects to come out the procedure by May.
Winners and losers
Among the 100 largest cryptocurrencies, the top three altcoin gainers of the week are Threshold (T) at 115.05%, Aptos (APT) at 86.22% and dYdX (DYDX) at 64.91%.
The top three altcoin losers of the week are Hedera (HBAR) at -7.72%, Decentraland (MANA) at -7.71% and Manufacturer (MKR) at -5.77%.
For more information on crypto prices, be sure to read Cointelegraph Market Analysis.
Most Memorable Quotes
“With the help of blockchain technology, we can achieve medical advances so powerful and undeniable that existing systems will have no choice but to change.”
Keith Comitoco-founder and president of Lifespan.io
“We are at the very beginning, 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 ongoing initiatives.”
Alfred F. KellyCEO of Visa
“Traditionally, people have looked to centralized intermediaries or governments to solve this problem, but technologies like cryptography, blockchain and zero-knowledge proofs offer new solutions.”
Hester PeirceCommissioner of the United States Securities and Exchange Commission
“We have observed that institutions and businesses are more open than ever to working with blockchain companies to improve their businesses.”
Paul Veradittakitgeneral partner at Pantera Capital
“We see the consequences of SEC priorities unfolding in real time – to the detriment of US investors.”
Michael SonnensheinCEO of Grayscale Investments
“Other coins or other tokens are basically used as a store of value for investment and speculation. [There is a] good argument for them to be treated as a financial product.
stephen jonesDeputy Treasurer and Minister for Financial Services of the Australian Parliament
Prediction of the week
Bitcoin Will Hit $200,000 Ahead of Next $70,000 “Bear Market” Cycle – Forecast
After two weeks of rally, the price of Bitcoin has been largely flat over the past few days, showing that market participants aren’t too worried ahead of monetary policy decisions from the US Federal Reserve, European Central Bank and Bank of England scheduled for next week.
For many, BTC price action is always tied to Bitcoin’s four-year halving cycles. The resulting price pattern offers a “record year” in four, with 2025 the next in line. According to pseudonymous analyst Trader Tardigrade, also known as Alan, Bitcoin’s block subsidy halving will take place a year before and from there the way will be paved for a giant $200,000 .
“#Bitcoin’s well-formed structure with stochastic behavior indicates that the next ATH will be at 200K and the next floor will be at 70K,” Alan predicted.
FUD of the week
Mango Labs, the creator of the Mango Markets crypto trading platform, filed a lawsuit against Avraham Eisenberg, seeking $47 million in damages. He also asked the court to void an agreement between Eisenberg and the decentralized self-governing organization of Mango. In October 2022, Eisenberg took around $117 million from Mango Markets by manipulating the price of its native token Mango (MNGO), allowing under-collateralized loans.
A class action claims that crypto-mining company Argo Blockchain omitted key information and made misrepresentations during its initial public offering in 2021. The filing alleged that the miner failed to disclose how sensitive it was to capital constraints, electricity costs and network difficulties. He also claimed that a number of the documents presented had been negligently prepared, with inaccurate or omitted information.
US Department of Justice seizes website of prolific Hive ransomware gang
International law enforcement groups took down the infamous Hive cryptocurrency ransomware gang, recovering over 1,300 decryption keys for victims since July 2022 and preventing $130 million in ransomware payouts. Hive was behind a series of notorious ransomware incidents, such as the Costa Rican Public Health Service and Social Security Fund cyberattack that occurred from April to May 2022.
Best Crypto Features
If you are a member of a DAO, you may not realize the legal dangers of getting involved. Here’s what you need to know.
Named on Forbes 30 under 30Amber Vittoria made a splash in the mainstream art world and has since embraced NFTs, collaborating with ‘The Hundreds’, ‘World of Women’ and as MoonPay’s ‘Artist in Residence’.
Reformed “altcoin killer” Eric Wall on shitposting and scaling Ethereum
“There are several cryptocurrency communities who basically have me as their favorite object of hate,” says crypto analyst Eric Wall, formerly known as the “altcoin killer.”
Blockchain’s most engaging reads. Delivered once a week.