According to recent court filings, troubled cryptocurrency exchange FTX might act as one of the major drivers behind the potential recovery of over $1 billion dollars in assets for creditors and clients of bankrupt crypto lender BlockFi.The success or failure of litigation supporting the claims against FTX and other commercial counterparties will significantly impact the recovery amount.BlockFi has listed various projected recoveries, including the liquidation of assets and claims from different entities.However, the actual recoveries may differ from these projections based on several factors.“While recoveries will be based on a number of factors, the largest driver of higher recoveries are our claims against Alameda and FTX,” the firm said on Friday.As part of the plan, there is a list of expected recoveries by BlockFi and these projections include the liquidation of approximately $1.06 billion in BlockFi Inc.Interest Account Claims, $216 million in BlockFi Lending LLC Private Client Account Claims, and $371 million in BlockFi International Ltd.
However, it is important to note that the actual recoveries received by clients may significantly differ from these projected figures.
BlockFi currently holds approximately $355 million worth of crypto assets that are frozen on the FTX exchange.Additionally, they have provided a loan of $671 million to Alameda Research, the trading arm of FTX.Both FTX and Alameda Research are undergoing Chapter 11 wind-down proceedings in Delaware.In a recent development, U.S.
Bankruptcy Judge Michael Kaplan ruled that BlockFi’s custodial wallet users are eligible to receive nearly $300 million in owed funds.This ruling allows for the return of non-estate digital assets held in client wallet accounts, subject to applicable set-offs.The liquidation plan, which outlines the return of these funds, was filed on Friday.Was this writing helpful? No Yes Qadir AK Qadir Ak is the founder of Coinpedia.He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010.He has also interviewed a few prominent experts within the cryptocurrency space.
Back to top button Leave a Reply [Cancel reply](/news/blockfi-says-ftx-is-one-of-the-major-driver-of-higher-recoveries-eyes-1-billion-in-recovery/#respond) Leave a Reply Crypto news Mark Yusko’s Crypto Summer Prophecy: Are We On The Brink Of An Epic Bull Run? Cryptocurrency fervor continues to rise, with Mark Yusko, the visionary founder, and CEO of Morgan Creek Digital, doubling down on his bullish predictions for the digital asset market.Despite his forecast of an imminent crypto bull market seeming premature, Yusko remains sanguine, suggesting that a vibrant “crypto summer” is on the horizon, likely to kickstart around mid-June.Bitcoin’s Resilience: A Sign of Greater Things to Come Yusko’s optimism isn’t unfounded.His bullish outlook is partly based on the current market performance of Bitcoin (BTC).Despite the digital currency’s flat performance over the past 12 months, Yusko sees a potential reversal pattern, which he finds intriguing.From its peak of $60,000 to its subsequent dip to $27,000 and eventual downturn to $15,000 during the FTX debacle, Bitcoin’s trajectory appears to have carved out a distinct inverse head and shoulders at $27,000.
This pattern, a classic technical signal of a potential bullish reversal, suggests a large-scale breakout could be imminent.Related: BTC Price Analysis: Here’s How Bitcoin Bulls Are Defying Market Odds – Coinpedia Fintech News However, Yusko cautions that a positive catalyst may be necessary to trigger this turnaround.“I think we need to see some good news to get the momentum going,” he stated.Bank Failures and the Impending Arrival of CBDCs In the wake of multiple regional bank failures this year, Yusko offers an intriguing perspective.He believes this turmoil in the banking sector might have been deliberately orchestrated to pave the way for the seamless adoption of a central bank digital currency (CBDC).While bank failures would typically incite panic and potentially trigger a Bitcoin crash, the cryptocurrency has instead demonstrated significant resilience.This, according to Yusko, suggests a broader narrative at play.Also Read: CBDCs Are Dangerous, Bitcoin Is The Way To Go: RFK Jr.
Issues Warning – Coinpedia Fintech News “If you would have said we’re going to have three of the largest bank failures in history this year… you would have thought, ‘Oh my God, Bitcoin is going to crash.’ Instead, it’s up meaningfully.I do think there’s information content there,” Yusko said.The veteran investor argues that these bank failures, rather than signaling disaster, might be part of a plan to instill fear in the traditional banking system.This, he suggests, could lead to people willingly embracing the forthcoming CBDC.Was this writing helpful? No Yes Qadir AK Qadir Ak is the founder of Coinpedia.He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010.He has also interviewed a few prominent experts within the cryptocurrency space.Crypto news SEC Fires Back At Coinbase: Ripple-Like Crackdowns To Continue! The battle for clarity in the crypto world is raging on, tensions are rising, and this showdown will be a high-stakes one.
The U.S.Securities and Exchange Commission (SEC) has once again set its sights on a major player, Coinbase, following a similar approach to its previous confrontation with Ripple Labs.
SEC Issues A Response Coinbase, the largest crypto exchange in the U.S., has found itself in the SEC’s crosshairs, as it continues to call for a clear regulatory framework for the rapidly evolving cryptocurrency industry.In a recent court filing, the SEC has responded to Coinbase’s petition for more lucid rules, suggesting the formulation of such regulations could span years.Related: Crypto Vs SEC: Will Coinbase’s Petition Triumph Against SEC’s Judicial Scrutiny – Coinpedia Fintech News Enforcement Actions to Continue In its response to Coinbase’s plea, the SEC outlined its intent to persist with enforcement actions, a revelation that echoes its previous legal tactics with Ripple Labs.Paul Grewal, Chief Legal Officer at Coinbase, stressed that the SEC’s acceptance of enforcement actions as a means to delineate rules around cryptocurrency indicates a slow and reactive approach to regulating this innovative sector.However, the SEC was quick to caution that public utterances from Chair Gary Gensler should not be misconstrued as formal guidelines or policy statements.Related: Are Crypto Giants Coinbase And XRP Teaming Up To Bring Down The SEC? – Coinpedia Fintech News The Wait for Clarity Continues The SEC’s retort to Coinbase’s plea indicates that the commission is yet to define what falls within its jurisdiction.
It cited previous cases where relief to petitioners was denied even when authorities took years to act against their petitions.In essence, the SEC maintains it has the prerogative to deliberate for years before deciding on the petition’s merits.
The regulatory body’s response has reaffirmed its stand that mandamus – a court order compelling a government official to fulfill their official duties – is an “extraordinary remedy.” It argues that Coinbase “does not and cannot demonstrate a right” to this relief.Grewal expressed on Twitter that the SEC’s court filing might mark its first official stance on whether it should establish rules for the crypto sector.He added, however, that the SEC’s response leaves many questions unanswered.Was this writing helpful? No Yes Crypto news US DOJ Ramps Up Crackdown on Crypto Exchange, DeFi, Mixers Crypto companies in the US are facing yet another obstacle as the Department of Justice’s national cryptocurrency enforcement team (NCET) ramps up its crackdown on bad actors in the market.
With the appointment of Eun Young Choi as director of the team, the DoJ is setting its sights on crypto exchanges, mixers, and DeFi platforms that facilitate criminal activities such as money laundering.This move comes as Ripple and Bittrex struggle with lawsuits, and Coinbase shifts its operations out of the country.
The crypto industry in the US is in for a rough ride ahead.US DOJ’s NCET Director Vows to Crack Down on Crypto Industry’s Bad Actors The US DOJ’s NCET, led by Director Eun Young Choi, is on a mission to take down crypto exchanges, companies, and mixers involved in crimes that harm the crypto market, like money laundering.As crypto crimes continue to rise, Choi promises a crackdown on bad actors in the industry.“But on top of that, they’re allowing for all the other criminal actors to easily profit from their crimes and cash out in ways that are obviously problematic to us.
And so we hope that by focusing on those types of platforms, we’re going to have a multiplier effect.” The DOJ intends to convey a deterrent message to crypto businesses that violate anti-money laundering or client identification requirements and fail to create adequate compliance, cybersecurity, and risk mitigation practices.The New York State Department of Financial Services (NYDS) has recently stepped up its enforcement of these rules against cryptocurrency companies.The DOJ will specifically target chain bridge thefts and hacks in the DeFi space.Attacks on DeFi have increased over the past few years, and investor losses have reached billions of US dollars.
Also Read: Bittrex Global Exchange Review: A simple straightforward cryptocurrency exchange US Has Toughest Stance Against Crypto Globally The DOJ’s crypto enforcement unit, led by the Biden Administration, is taking a hardline stance on the crypto industry, making it one of the toughest globally.Following the FTX crisis, regulators like the US SEC have been scrutinizing crypto exchanges, with Binance and Coinbase among those targeted.
Binance and its CEO “CZ” were charged by the US CFTC for violating commodities laws and non-compliance with regulations.The SEC is reportedly on the verge of taking enforcement action against Binance or its US arm.Was this writing helpful? No Yes Qadir AK Qadir Ak is the founder of Coinpedia.He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010.He has also interviewed a few prominent experts within the cryptocurrency space.Top posts ETH47 mins ago Breaking Above This Level Might Trigger A Bullish Momentum For Ethereum Price Ethereum managed to surpass the $1,800 price level initially, but it has been experiencing a period of consolidation recently.
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