Celsius Fights for Compensation from FTX
Celsius Network, the defunct crypto lending platform, has filed an appeal after Judge John Dorsey rejected its $444 million damage claim against FTX. This legal battle is part of the ongoing FTX bankruptcy proceedings, aimed at addressing losses from the collapse of the crypto exchange led by Sam Bankman-Fried.
Original $2 Billion Claim Reduced to $444 Million
Initially, Celsius sought up to $2 billion in damages, alleging that misleading statements about its financial stability made by FTX officials accelerated its collapse in 2022.
Later, Celsius reduced its claim to $444 million, focusing on so-called “preferential transfers,” which could prioritize repayments to specific creditors.
FTX and Court Reject Celsius’ Claims
FTX debtors argued that the evidence provided by Celsius was insufficient to support its claim. They also noted that the amended $444 million claim was submitted too late.
In December 2023, Judge Dorsey dismissed both the original $2 billion claim and the amended $444 million version, citing insufficient evidence. He added that Celsius had not requested permission to amend its claims or provided an explanation for the delay in submitting them.
Celsius Faces Additional Legal Challenges
In November 2024, Celsius pledged to distribute $127 million to creditors from its litigation recovery account. In the same month, a New York federal judge denied former Celsius CEO Alex Mashinsky’s attempt to dismiss fraud charges.
Mashinsky faces allegations of manipulating the price of Celsius’ native token, CEL, and fraud linked to the company’s collapse. If convicted, he could face up to 115 years in prison.
Conclusion
Celsius Network continues to pursue compensation from FTX, emphasizing disputes over evidence and timing. Meanwhile, the company and its former executives face significant legal challenges, complicating efforts to rebuild trust and achieve fair settlements with creditors.

#LegalBattle , #Celsius , #FTX , #CryptoNewss , #bankruptcy

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The Cypriot securities regulator has once again extended the suspension of FTX Europe’s operations, allowing customers to withdraw their funds while keeping the platform closed for trading.
Suspension Extended by Another Six Months
The Cyprus Securities and Exchange Commission (CySEC) announced on November 5 that the suspension has been extended until May 30, 2025. This decision prohibits FTX Europe from offering its services, accepting new clients, or advertising in Europe. The regulator is responding to the need to protect client funds and ensure continuity in the restructuring process.

Ban on Operations, But Option to Return Client Funds
FTX Europe is allowed to conduct transactions necessary to return funds to clients, but it cannot expand its services or accept new customers. This suspension has now been extended for the fourth time since the initial operations halt on November 11, 2022, shortly after FTX filed for bankruptcy in the United States.
Brief History of FTX Europe
FTX Europe began operating as a regulated EU investment company offering multi-asset derivative trading only eight months before FTX’s bankruptcy. Following the bankruptcy filing in the U.S., the Cypriot regulator suspended FTX Europe’s license, citing the “suitability of management board members” and the need to protect client assets. Around this time, approximately $600 million in cryptocurrencies was reported to have been drained from FTX wallets.
Sale Back to Original Owners
FTX Europe, originally the Swiss startup Digital Assets AG, was acquired by FTX in 2021 for $323 million. FTX’s restructuring team later attempted to reclaim part of the funds spent on the acquisition due to an alleged “massive overpayment.” This dispute ended with a countersuit from the original owners. In February, an agreement was reached, with FTX selling its European division back to the original founders for $32.7 million.
FTX Europe Website Only for Withdrawals
FTX Europe’s website no longer offers trading, but users can view their balances and request withdrawals. Clients who do not withdraw their funds will see them transferred to a “client segregated account,” where they will be held for up to six years, as indicated in the FAQ section.

#cryptoregulation , #Ftx❓ , #CryptoNewsCommunity , #bankruptcy , #cryptoexchange

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The #bankruptcy exchange #Mt.GOX has again shifted the deadline for paying creditors. Now the victims of the platform's collapse will receive their money only by October 31, 2025

Cryptocurrency #exchange Mt. Gox went bankrupt back in 2014 and has not yet completed the process of paying out funds to creditors affected by the collapse of the trading platform.

The deadline is being pushed back again

The new document states that most creditors have already received basic, interim and early payouts. However, some of the creditors have still not completed all the necessary procedures or have faced some problems during the disbursements.

“Many creditors have still not received their disbursements because they have not completed the necessary procedures to receive them. In addition, a significant number of rehabilitation lenders have not received their disbursements for various reasons, such as problems encountered during the disbursement process,” Mt. Gox said in a statement.

As a result, the deadline to receive these payments has been extended from October 31, 2024 to October 31, 2025 (Japanese time).

Cryptans aren't too upset

As of this writing, $BTC
is trading at $61,074. Over the past 24 hours, the cryptocurrency has slipped just over 1%. At the same time, bitcoin did not show any reaction specifically to the news from #MtGox .

According to Arkham, the Mt. Gox crypto wallet currently holds 44,905 bitcoins totaling over $2.7 billion at the current exchange rate. This is a significant amount of money, which is why many members of the crypto community have long feared that the exchange's payouts could “sink” BTC.

“Now the selling pressure on bitcoin after the $4 billion payout is a problem as early as 2025,” rejoiced a user on X (formerly Twitter) in his tweet.

Meanwhile, the bankrupt exchange has already moved its BTC holdings in the past. For example, on May 28, Mt. Gox moved $8.7 billion worth of crypto. Then representatives explained that this is how the trading platform is preparing for the first payments to creditors.

By the end of July this year, the platform had moved another 37,477 bitcoins worth $2.5 billion (at the exchange rate at the time). After that, the exchange reported that it had already completed 60% of payments to creditors.
#10MTradersLeague

Celsius, a once-prominent crypto lending platform now mired in bankruptcy, has made a significant move by transferring approximately $1 billion worth of Ethereum ($ETH ) to various centralized exchanges. This large-scale transfer has ignited speculation that Celsius may be gearing up to start repaying its creditors as part of its bankruptcy proceedings.
Pivotal Aspects of Celsius's Ethereum Movement
Massive Transfer of Ethereum:
Celsius moved a colossal amount of 443,961 ETH($ETH ) to exchanges like Coinbase Prime, Paxos, and FalconX. This series of transactions took place over January 25 and 26, with the largest single transaction involving 443,961 ETH, equivalent to about $984 million at the time of transfer.
Speculations on Repayment Plans
There is growing speculation that these transfers are a precursor to Celsius beginning repayments to its creditors. The platform has previously indicated that a limited number of corporate accounts might recover cryptocurrency through Coinbase, while distributions to U.S.-based non-corporate accounts are expected to be made via PayPal and for those outside the U.S. through Coinbase.
Ongoing Bankruptcy Proceedings:
Celsius filed for bankruptcy in July 2022 and has since been engaged in a complex restructuring process. The platform's administrators had earlier indicated their intent to notify certain account holders who withdrew substantial amounts before the bankruptcy declaration that they might need to return these funds.
Implications for the Crypto Market
Market Response to the Transfer:
While $ETH prices have remained relatively stable, there's concern about how such large transfers could impact the market, especially considering the current market conditions and the scale of the assets involved.
Creditor Expectations:
The Celsius creditors, are keenly observing these developments, with expectations that repayments could commence as early as mid-February. However, the exact timelines for these distributions are still unclear.
Remaining Assets:
Despite these significant transfers, Celsius reportedly still holds a substantial amount of ETH, valued at nearly $139 million, which could play a role in future creditor repayments.
Final Thoughts:
Celsius's transfer of $1 billion in Ethereum to exchanges is a critical development in its ongoing bankruptcy proceedings. It not only signals potential preparations for repaying creditors but also highlights the ongoing challenges and complexities within the crypto lending market. As the situation unfolds, the crypto community and investors are closely watching for further actions by Celsius, which could have broader implications for the market and the treatment of digital assets in bankruptcy scenarios

#ETH #Celsius #bankruptcy #selling #TrendingTopic

Elon Musk, the CEO of Tesla and SpaceX, has once again criticized the US financial authorities, this time for their handling of the recent banking crisis.

In a comment on Bill Ackman’s tweet, Musk expressed his disappointment with the measures taken by the authorities, describing the system of money as an “inefficient” database for allocating resources.

The crisis was triggered by a bank run on the SVB bank, which led to the financial authorities promising a withdrawal guarantee for all deposits, immediately eliminating the statutory $250,000 deposit guarantee limit. However, even with unlimited deposit protection, the bank run did not calm down, prompting the US authorities to issue a prescription for SIBs to deposit their funds in problematic local banks.

Ackman argued that “unrestricted deposit protection is declared or the local bank collapses.” But Musk criticized the system of money as a “set of heterogeneous resource allocation databases” that are inefficient in allocating resources. According to Musk, money is just information, a database that stores various exchange processes necessary for economic activities.

Musk also used the word ‘heterogeneous’ to describe the existing currency and monetary system issued by the central bank, stating that it is not uniform and complex, which distorts the allocation of resources. The result is periodic financial crises, asset bubbles, and collapses.

Musk has been an avid supporter of Dogecoin and has been expected to equip Twitter, which he acquired, with a cryptocurrency-based payment system. In 2021, Musk caused a stir in the cryptocurrency market when he bought Bitcoin with Tesla’s own funds.

In conclusion, Musk’s comments on the inefficiency of the current monetary and financial system are not new. He has always believed that money is just information, and the current system is not efficient in allocating resources. His criticisms of the US financial authorities’ measures against the recent banking crisis highlight the need for a new, more efficient system that can better serve the needs of the economy.

#ElonMusk #Musk #bankruptcy #azcoinnews #crypto2023

This article was republished from azcoinnews.com

The #AVAX✅ token buyback plan by the Avalanche Foundation provides the LFG with $60 million in funds to use as #bankruptcy court orders. Meanwhile, the #TerraLunaClassic community has taken full control of the blockchain’s leadership as TFL and LFG approach their final days.

If the community uses this $60 million to buy back and burn $LUNC
, the price of Terra Luna Classic will likely see a significant impact. The LUNC price is currently trading at $0.0000886, down 0.6% in the last 24 hours. A $60 million purchase of #LUNC✅ would equate to 671 billion coins, or about 12% of the total circulating supply, with a current market cap of $506 million. To maintain this #marketcap with 12% of the supply gone, the price would need to adjust 17% upward, reaching $0.0001.

The hype from the coin burn, combined with the potential 17% increase, could fuel Fear of Missing Out (FOMO), leading to a cascading effect that drives LUNC prices higher than $0.0001.