FTX creditors list, BlockFi $1.2B exposure and new Celsius token…

This Week’s Top Stories

FTX’s list of creditors shows airlines, charities and tech companies that have collapsed

The full list of creditors owed money by the bankrupt cryptocurrency exchange FTX has been released, revealing a wide range of global companies. Among the potential creditors are airlines, hotels, charities, banks, venture capital firms, media outlets and crypto companies, along with United States and international government agencies. According to other headlines about the FTX scandal, US federal prosecutors allege that Sam Bankman-Fried invested $400 million in the venture capital firm Modulo Capital with money from FTX customers. Investigators​​​​ indicate that Modulo was likely built with criminal proceeds or misappropriated funds. Attorney fees in the case are estimated to reach hundreds of millions of dollars before the company’s bankruptcy investigation is completed.

BlockFi’s uncensored financials reportedly show $1.2B in FTX exposure

Bankrupt crypto lender BlockFi uploaded uncensored financials by accident, revealing $1.2 billion in assets tied to bankrupt exchange FTX and trading firm Alameda Research. Unrestricted filings show that, as of January 14, BlockFi has $415.9 million in assets linked to FTX and $831.3 million in loans to Alameda. BlockFi filed for Chapter 11 bankruptcy on November 28, citing the collapse of FTX just weeks earlier as the cause of its financial problems.

The new ‘Celsius token’ can be used to repay creditors

Bankrupt crypto lender Celsius may issue its own tokens to pay off debts. At the court hearing, Celsius’ attorney Ross M. Kwasteniet said the company is negotiating with creditors on how to restart the platform and repay them adequately. If approved by creditors and the court, the relaunched version will be a “properly licensed publicly traded company,” which is expected to provide more cash than simply abandoning the company.

Binance holds token collateral and user funds in same wallet ‘by mistake’

Cryptocurrency exchange Binance admitted to wrongly storing some of its customer funds in wallets that were the same as collateral for Binance tokens, or B-Tokens. The exchange has started the process of transferring assets to a special collateral wallet, and confirms that B-Tokens are always fully guaranteed and backed 1:1. Binance previously said that the ownership of the company is recorded in a separate account and should not be part of the proof calculation. reserve.

Creditors of Genesis filed a lawsuit against Barry Silbert and DCG

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

Winners and Losers

At the end of the week, Bitcoin (BTC) that’s it $23,129Ether (ETH) at $1,600 and XRP at $0.41. The total market capitalization is at $1.06 trillion, according to CoinMarketCap.

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 three biggest altcoin losers of the week were Hedera (HBAR) at -7.72%, Decentraland (WHERE) at -7.71% and Maker (MKR) at -5.77%.

For more information on crypto prices, be sure to read Cointelegraph’s market analysis.

Most Memorable Quotes

“With the help of blockchain technology, we can achieve powerful medical progress and it is undeniable that the existing system has no choice but to change.”

Keith Comitoco-founder and president of Lifespan.io

“It’s very early days, but we continue to believe that stablecoins and central bank digital currencies have the potential to play an important role in the payments space, and we have several initiatives underway.”

Alfred F. KellyCEO of Visa

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

Hester PeirceCommissioner of the US Securities and Exchange Commission

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

Paul Verradi jacketgeneral partner at Pantera Capital

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

Michael SonnensteinCEO of Grayscale Investments

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

Stephen Jonesassistant treasurer and minister for financial services for the Parliament of Australia

Sunday Predictions

Bitcoin to hit $200K before $70K ‘bear market’ next cycle – Forecast

After two weeks of public meetings, the price of Bitcoin has been generally flat in the past few days, indicating that market participants are not overly concerned about the advance of the US Federal Reserve, the European Central Bank and the Bank of England monetary policy decisions scheduled for next week.

For many, BTC price action is still bound by Bitcoin’s four-year halving cycle. The resulting price pattern offers one “all-time high year” in every four, with 2025 the next. According to the pseudonymous analyst Trader Tardigrade, also known as Alan, the block subsidy of the Bitcoin block will happen a year earlier and, from now on, the path will open up to a giant $ 200,000.

“#Bitcoin’s well-formed structure with stochastic behavior suggests that the next ATH will be at 200K and the next floor will be at 70K,” predicted Alan.

FUD from Sunday

Mango Markets is suing Avraham Eisenberg for $47M in damages plus interest

Mango Labs, creator of crypto trading platform Mango Markets, filed a lawsuit against Avraham Eisenberg, seeking $47 million in damages. It also asked the court to cancel the agreement between Eisenberg and the decentralized autonomous organization Mango. In October 2022, Eisenberg saved about $117 million from Mango Market by manipulating the price of the original Mango token (MNGO), allowing unsecured loans.

Argo Blockchain is accused of misleading investors in a class-action lawsuit

The class action lawsuit alleges that crypto mining company Argo Blockchain omitted key information and made false statements during its initial public offering in 2021. The filing alleges that the miner failed to disclose capital constraints, electricity costs and network difficulties. It also claims that some of the documents provided have been prepared carelessly, with inaccurate or missing information.

The US Department of Justice seized the website of the Hive ransomware gang

An international law enforcement group has dismantled the notorious Hive cryptocurrency ransomware gang, returning more than 1,300 decryption keys to victims since July 2022 and preventing $130 million in ransomware payments. Hive is behind several well-known ransomware incidents, such as the public health service of Costa Rica and the social security fund cyberattack that took place from April to May 2022.

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