The “Motion for Leave” would provide the FTX estate additional time to construct its argument for stopping repayments to creditors in these so-called restricted jurisdictions. The document was submitted on Sunday, with a hearing set for Tuesday to discuss the initial motion that instigated the legal conflict.

“Given the high volume of Objections received up until and following the Objection Deadline, the FTX Recovery Trust needed more time to create, finalize, get approval for, and file the Reply,” the FTX estate stated.

The original motion of the estate aimed to cease repayments to countries with unclear or restrictive cryptocurrency regulations. The estate argued that initiating repayments to residents from these countries might lead to fines, penalties, personal liability for directors and officers, and potentially even incarceration.

This decision impacts creditors in 49 countries, with claims amounting to $470 million. Chinese residents form the majority group, accounting for 82% or $380 million of claims in these restricted countries.

The FTX estate has faced backlash from certain creditors for its attempts to halt repayments. One such critic is Weiwei Ji, claiming to represent hundreds of Chinese creditors.

According to Sunil Kavuri, an FTX creditor, $1.4 billion in FTX claims are still awaiting resolution. The FTX estate initiated repayments to the exchange’s creditors in February, over two years after filing for bankruptcy in November 2022.

The post FTX Exchange Asks for More Time Amidst $470M Foreign Claim Freeze Controversy appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The legal battle commenced in August 2024 when Celsius accused Tether of unlawfully initiating a fire sale of Celsius’s collateral, which consisted of 39,542 BTC valued at approximately $4.3 billion at current market rates. This was reportedly done before the stipulated 10-hour waiting period had lapsed, as per a court document filed on Monday.

Previously, Celsius had secured loans from Tether, using cryptocurrencies, including bitcoin, as collateral. During 2022, Tether had repeatedly asked Celsius to supply additional collateral to back its loans.

Chief Bankruptcy Judge Martin Glenn, who is handling the case, stated that the alleged oral consent given by former Celsius CEO Alexander Mashinsky to liquidate the collateral was “insufficient.” The judge highlighted that the failure to adhere to the 10-hour waiting period, as stated in the agreement between the companies, might still be considered a contract breach.

Upon being sued by Celsius last year, Tether denied any malpractice. Tether, in its defense, stated, “This groundless lawsuit against Tether is a classic example of ‘no good deed goes unpunished.’ Instead of acknowledging the legitimate agreement signed years before Celsius’s bankruptcy, this lawsuit attempts to wrongfully shift the burden of Celsius’s mismanagement and failure onto Tether.”

However, Monday’s court verdict dismissed one count (Count 4) in Tether’s favor, without prejudice. This specific count alleged that Tether violated its responsibility of “good faith and fair dealing” under the British Virgin Islands law. The dismissal by Judge Glenn came without prejudice, implying that Celsius’s lawyers can revise and resubmit the allegation, provided they offer sufficient factual evidence.

Celsius filed for bankruptcy in 2022 following the identification of a $1.2 billion discrepancy in its balance sheet. The company emerged from bankruptcy in November 2023 after the court approved its reorganization plan.

Disclaimer: The Block is an independent media platform that provides news, research, and data related to crypto. Foresight Ventures, a majority investor of The Block as of November 2023, also invests in other crypto businesses. Crypto exchange Bitget serves as an anchor LP for Foresight Ventures. The Block continues to independently deliver unbiased, impactful, and timely crypto industry information. Read our full financial disclosures.

The post Celsius Green-Lit to Continue $4.3 Billion Legal Battle Against Tether appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The legal counsel for Binance has labeled the lawsuit as “legally deficient,” insisting that the downfall of FTX was not the result of market manipulation or any hostile actions, but was due to internal mismanagement. “Plaintiffs are attempting to divert attention away from the fact that FTX’s collapse was due to one of the largest corporate scams in history,” the motion reads, referring to Sam “SBF” Bankman-Fried’s conviction on seven counts of fraud and conspiracy.

The FTX estate further claims that Binance received billions in cryptocurrency during a buyback deal in 2021, which was funded improperly with customer assets. Rejecting this allegation, Binance argues that FTX “remained a viable entity for 16 months” after the share buyback, and contends there is “no plausible claim” that the exchange was insolvent at that point.

The lawsuit also accuses former Binance CEO Changpeng Zhao of causing a market crash by tweeting about the liquidation of FTT tokens on November 6, 2022. Binance retorts that Zhao’s tweet was grounded on publicly available information, citing a November 2, 2022 CoinDesk article that revealed Alameda Research’s financial status.

In a further defence, Binance refutes any suggestion that it had no intention of minimising market impact. The exchange also challenges the court’s jurisdiction, stating that none of the foreign entities named in the suit “are incorporated in or have their principal place of business in the United States” and are, therefore, outside the court’s jurisdiction.

The motion also criticizes the plaintiff’s narrative as “a hodgepodge of state law claims” built on “pure conjecture—much of it sourced from a convicted fraudster’s hindsight speculation.” Binance has requested the court to dismiss all claims with prejudice. The FTX estate has yet to file its response.

In related news, the FTX Recovery Trust announced on May 15 that it will begin its second round of repayments to creditors starting May 30. Over $5 billion will be disbursed through BitGo and Kraken to the second group of eligible parties under the exchange’s reorganization plan. Depending on the final number of valid claims, FTX may repay up to $16 billion in total.

The post Binance Moves to Quash $1.76B FTX Lawsuit, Points Finger at SBF for Demise appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The transfer occurred at around 8:15 p.m. ET, when a total of 11833.64 BTC, equivalent to $931.19 million, was shifted. The bulk of this amount moved to the undisclosed wallet with the address “1Pazv…R9pYj.” An additional 332 BTC was directed to Mt. Gox’s warm wallet. Both sums remain untouched, Arkham Intelligence reveals.

Historically, such Bitcoin movements have often been followed by Mt. Gox compensating creditors who suffered losses due to the exchange’s bankruptcy. This could potentially influence market prices due to increased selling pressure. However, it remains uncertain if this recent transfer is part of any future distribution plans to creditors.

According to Arkham’s data, the massive Bitcoin transfer of $900 million on Monday originated from a Mt. Gox wallet, “1Mo1n.” This wallet received $1.07 billion worth of Bitcoin from another exchange wallet just last week. Interestingly, the “1Mo1n” wallet wasn’t identified as a Mt. Gox wallet on Arkham Intelligence during last week’s fund transfer.

Established in 2010, the Tokyo-based Mt. Gox was previously the world’s largest Bitcoin exchange, handling 70% of all global Bitcoin trades in 2013. Unfortunately, a major hack in 2014 led to the loss of around 850,000 BTC, pushing the company to seek bankruptcy protection.

Starting in July 2024, Mt. Gox began repaying its creditors from its reserves of 142,000 BTC ($11 billion), 143,000 Bitcoin Cash ($47 million), and 69 billion Japanese yen ($469 million). Despite some creditors receiving repayments via Kraken and Bitstamp exchanges, Mt. Gox has delayed the repayment deadline to Oct. 31, 2025. As per Arkham data, the bankrupt exchange still possesses Bitcoin worth $2.8 billion across its wallets.

Disclaimer: The Block is an independent news platform delivering objective, impactful, and timely crypto industry information. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures also invests in other crypto entities, including Bitget, an anchor LP for Foresight Ventures. The Block operates independently to maintain its impartiality. Here are our current financial disclosures. © 2025 The Block. All Rights Reserved.

The post Mt. Gox Transfers $905M in Bitcoin to Unidentified Wallet: Report by Arkham appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Customer Discontent Over Refund Valuation

This approach has led to widespread dissatisfaction among FTX customers, who feel shortchanged by the valuation method. US Bankruptcy Judge John Dorsey, however, upheld the decision, citing strict adherence to US bankruptcy laws which dictate that debts must be settled based on their value at the time of filing for bankruptcy.

Selective Repayment and Operational Challenges

FTX has indicated that not all claims will be immediately addressed, emphasizing the need for a detailed review to determine the legitimacy of each claim. Despite initial hopes by FTX CEO John J. Ray III to rejuvenate the exchange’s operations through partnerships, financial deficits have halted these plans. Andy Dietderich, an attorney for FTX, disclosed at a Delaware bankruptcy court hearing that the depreciated value of acquisitions made under former CEO Sam Bankman-Fried’s tenure has deterred potential investors.

Legal Repercussions and Asset Recovery

Sam Bankman-Fried, whose leadership saw FTX filing for bankruptcy in late 2022, has been convicted on multiple fraud charges, facing a significant prison term. Despite these challenges, FTX has managed to recover over $7 billion in assets for customer repayments and has negotiated with regulatory bodies to ensure refunds are prioritized.

Market Impact of Repayment Announcement

The announcement of the repayment strategy led to a sharp decline in the value of FTT, FTX’s native token, which saw a 40% drop. Currently, FTT is trading below $2, marking a decrease of over 14% in the past 24 hours, as per CoinGecko data.

The post FTX Announces Bitcoin Refund Plan at Pre-Crash Prices appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Bittrex Bankruptcy: What’s Happening?

Bittrex Inc. sought protection under Chapter 11 bankruptcy, a move triggered by significant financial liabilities ranging between $500 million and $1 billion. The decision follows a lawsuit from the SEC, accusing Bittrex of violating federal securities laws by operating as an unregistered national securities exchange, broker, and clearing agency. Notably, these charges were leveled despite Bittrex winding down its operations within the United States.

According to a press release from the beleaguered exchange, all client assets remain secure on the platform. Bittrex plans to make these assets available to customers once the Bankruptcy Court approves the method of funds distribution. Richie Lai, Co-founder and CEO of Bittrex, emphasized that the company still holds 100% of all customer funds and assured that a claims process would be established through the bankruptcy courts.

Bittrex’s Financial Obligations and Future Operations

An interesting revelation in Bittrex’s bankruptcy petition is its considerable debt to the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC). Bittrex owes the OFAC nearly $25 million, arising from a settlement reached in October last year concerning alleged violations of multiple sanctions programs and non-compliance with anti-money laundering requirements.

Despite the bankruptcy filing by Bittrex Inc. and affiliated entities, including Desolation Holdings LLC and Bittrex Malta Holdings Ltd, Bittrex Global will continue its operations. The international entity aims to serve non-U.S. customers, maintaining its usual operations amidst the financial challenges faced by its U.S. counterpart.

The post Bittrex Filing for Bankruptcy Amidst Legal Challenges appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

According to the Arkham Intelligence dashboard, the lender holds 410,378 staked ETH worth $862.45 million, and the pending withdrawals of staked assets by other centralized crypto exchanges account for around 85% of entities waiting to withdraw. Per Nansen data, Kraken accounts for most of the pending withdrawals with 556,321 ETH, followed by Binance with 216,208 ETH and Coinbase with 117,239.

The recent regulatory actions in the United States could be forcing firms in the region to withdraw their staked ETH. Kraken was fined $30 million by the SEC in February for failing to register its staking services, and the regulator has also filed charges against Gemini while issuing a Wells notice to Coinbase.

Meanwhile, Celsius creditor and crypto blogger Tiffany Fong shared a screenshot of the bankrupt lender’s monthly fee statement on April 14. The statement includes a $72,000 invoice titled “Tiffany Fong litigation,” suggesting that Celsius wants to sue Fong. With approximately $119,000 locked in the firm, Fong has been actively reporting on the Celsius bankruptcy case while sharing leaked internal information.

Celsius Withdraws Over $13 Million of Ethereum from Staking

Celsius, a bankrupt crypto lender, has withdrawn over $13 million worth of Ethereum from staking. This includes 6,521 staked Ethereum that the firm withdrew since the network-enabled withdrawals through the Shapella upgrade. On April 14, on-chain investigator Lookonchain reported that $504.5 million worth of Ethereum had been withdrawn, with Celsius, liquid staking protocol Lido, and Figment being the top three addresses.

According to blockchain analytical firm Nansen, Celsius has withdrawn 4,991 ETH as of April 13, equating to 3.64%. Additionally, the lender holds 410,378 staked ETH worth $862.45 million. Pending withdrawals of staked assets by other centralized crypto exchanges account for around 85% of entities waiting to withdraw, with Kraken accounting for most of the pending withdrawals with 556,321 ETH.

Regulatory actions in the United States could be forcing firms in the region to withdraw their staked ETH. In February, the SEC fined Kraken $30 million for failing to register its staking services. The regulator has also filed charges against Gemini and issued a Wells notice to Coinbase.

Celsius Plans to Sue Creditor for Leaking Confidential Information

Crypto blogger Tiffany Fong has claimed that Celsius wants to sue her in an April 14 tweet. Fong shared a screenshot of the bankrupt lender’s monthly fee statement, including a $72,000 invoice titled “Tiffany Fong litigation.” As a Celsius creditor with about $119,000 locked in the firm, Fong has been actively reporting on the Celsius bankruptcy case while sharing leaked internal information. The blogger also got the broader market attention when she interviewed the founder of the now-defunct crypto exchange, FTX, Sam Bankman-Fried.

The post Celsius Withdraws Over 6,000 Staked Ethereum and Plans to Sue Creditor appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Bitcoin and other proof-of-work coins are mined by Core Scientific. In order to verify transactions and issue new tokens at the same time, the procedure requires the powering of data centers around the region equipped with highly specialized computers. This procedure calls for high-priced machinery, some technical expertise, and a substantial amount of power.

As of Tuesday’s close of trade, Core was valued at $78 million, down from a high of $4.3 billion in July 2021, when it went public through a special purpose acquisition vehicle or SPAC. Over the last year, the stock price has dropped by more than 98%.

A source close to the firm reports that it is still making money, but not enough to cover the financial debt it incurred while leasing equipment. This source, who asked not to be identified as discussing internal company affairs, said that the firm would not be going into liquidation but would instead continue business as usual while it negotiates with senior security noteholders, who control the vast majority of the company’s debt.

While Core warned shareholders in an October filing that they risked a complete loss of their investment, this may not be the case if the sector as a whole begins to show signs of improvement. Core’s convertible note holders have struck a contract that protects them from complete ruin in the event that bitcoin’s economic climate improves. In addition, the firm said that it would not be able to make the debt payments that were due in late October and early November and that its creditors were free to file lawsuits against it for nonpayment.

The price of bitcoin, which is predominantly minted by Core, has fallen from a record high of almost $69,000 in November 2021 to roughly $16,800. Profit margins have shrunk because of the decline in value, more competition from other miners, and higher costs of producing and using energy.

The post Core Scientific Filed for Chapter 11 Bankruptcy but Says It Will Continue Operations appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Earlier employees even mention that the company was basically hurt by souring of almost $39 million of line of credit. It has been extend by Cred to the Chinese lender.

Crypto Whale – Blame for banning of crypto

But, the new court documents which also filed by trust representing the debtors alleges the Cred. As, there was even the fraudulent transaction where Cred paid the consultant with “crypto whale”. Moreover, Winslow Carter which is even strong more than 516 Bitcoin (worth almost for $4.8 million at time of the sale as well as $21 million) that is in exchange for the fundamentally worthless kind of the bond.

This is the fundamental tenet of the bankruptcy law. It is an insolvent company that might not transfer the assets in the exchange for absolutely no value. This is precisely what happened. The Trust also has traced as well as recovered quite significant quantity of the bitcoin and crypto currency for benefit of the creditors. This might even continue to be absolutely aggressive in such efforts.

CoinDesk has also reached out to be absolute Strong for the comment. However, it did not receive any such kind of the response prior to its publication.

Road to bankruptcy

Yes, Cred started in 2018 which also conducted the ICO also known as initial coin offering in May 2018. Here proceeds offered the initial funding mainly for a company. After the move of organization to the US, would get Cred.

The post Bankrupt Cred Blamed for Fake transfer of Bitcoin to Crypto Whale! appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.