bankruptcy

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

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

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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