ChainCatcher news, the crypto bank Banq previously filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for Nevada, but its application has been dismissed.The judge presiding over the case, Natalie M. Cox, stated that the bank's bankruptcy filing was a "malicious" strategy aimed at "gaining an advantage in pending litigation" rather than restructuring.Judge Cox wrote in her ruling that the bankruptcy proceedings were a tactic to protect Banq and its founder Jon Jiles from an investor lawsuit initiated by N9 (the company's primary creditor holding a $3 million stake). N9 accused Jiles of failing to fulfill his fiduciary duties by prioritizing the interests of Prime Trust (of which he is a founder and managing member) over those of Banq.Previous news, the crypto custody company Prime Trust's subsidiary Banq has filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Nevada.

ChainCatcher news, according to The Block, former FTX user Alexander Nikolas Gierczyk has filed a lawsuit in the U.S. District Court for the Southern District of New York, accusing the hedge fund Olympus Peak of violating an agreement regarding additional bankruptcy claim proceeds. It is reported that Gierczyk transferred his bankruptcy claim worth $1.59 million to Olympus Peak at a 58% discount in November 2023.Recently, U.S. Bankruptcy Court Judge John Dorsey in Delaware approved the FTX asset restructuring plan. The plan is expected to repay FTX creditors between 129% and 146% of the claim value at the time of the bankruptcy filing in fiat currency. According to the lawsuit documents, based on this repayment ratio, Olympus Peak is expected to profit between $1.1 million and $1.4 million from Gierczyk's claim.The lawsuit documents indicate that although Gierczyk transferred the claim at a discount, the agreement with Olympus Peak included an "excess claim clause." This clause was originally intended to allow Gierczyk to receive additional compensation in the same proportion if the bankruptcy distribution exceeded expectations. However, the plaintiff's attorney stated that Olympus Peak has explicitly indicated it will not fulfill its obligations under this clause.

ChainCatcher news, according to Coindesk, U.S. Delaware bankruptcy court judge John Dorsey decided on Monday during a hearing to approve the FTX bankruptcy plan, which will fully repay cryptocurrency customers in cash plus interest. Under the plan, 98% of creditors will receive at least 118% of the value of their claims in cash.FTX lawyers stated that they are still considering distributing stablecoins to creditors as an option and confirmed that they are in discussions with at least four companies that could handle such distribution if necessary.

ChainCatcher news, according to The Block, the discounted token sales from FTX's bankrupt assets continue to attract investor attention. Investors have snapped up millions of tokens from several projects, betting that these assets are undervalued and may have long-term upside potential.The largest holding of FTX's assets is 41 million locked Solana (SOL), currently valued at approximately $6 billion. The asset management team sold these tokens in batches at a discounted price ranging from $64 to $110 in April and May. The current trading price of SOL is about $142, and investors who bought in, such as Pantera Capital, Galaxy Trading, and Figure Markets, have already realized paper profits.The FTX asset management team plans to auction 22.3 million locked Worldcoin (WLD) tokens, valued at approximately $38 million. Despite concerns from investors about the length of the lock-up period, the auction remains competitive, with WLD trading at "slightly above $1." The current trading price of WLD is about $1.78.The FTX asset management team has also sold Metaplex (MPLX) tokens, which several crypto funds subsequently purchased at a discount from Wave Digital Assets.Investors indicate that they are focused on high-quality assets and projects led by visionary founders. Despite the risks, the appeal of discounted tokens and potential returns make many investors consider these investment opportunities worthwhile.

ChainCatcher news, according to The Block, the FTX bankruptcy management team is auctioning 22.3 million locked Worldcoin (WLD) tokens at a significant discount, currently valued at approximately $37.7 million. This auction is part of FTX's ongoing efforts to recover funds for creditors. Interested buyers must submit bids by 8 PM Eastern Time on Wednesday, with discounts potentially ranging from 40% to 75%.These WLD tokens will be unlocked daily until 2028, and the auction marks FTX's continued efforts to manage its assets following the sale of Solana and Metaplex tokens. The FTX estate currently holds approximately $594 million in assets, most of which are illiquid FTT tokens.

ChainCatcher news, according to HODL15Capital monitoring, at the time of the Chapter 11 bankruptcy filing, FTX was severely lacking in spot Bitcoin, holding only 0.1% of the Bitcoin that customers believed the exchange held. At the time of the bankruptcy filing, FTX had only 1 million dollars in Bitcoin, while customer balances amounted to 1.6 billion dollars.

ChainCatcher news, according to Spot On Chain monitoring, in the past 9 hours, the wallet "0x999" (possibly the bankruptcy distribution address of Genesis) transferred 5000 ETH (12.9 million USD) to FalconX, and currently still holds 162,000 ETH (423 million USD).

ChainCatcher news, according to Reuters, Terraform Labs received approval from a U.S. bankruptcy court on Thursday to begin liquidation. U.S. Bankruptcy Judge Brendan Shannon approved Terraform's bankruptcy plan during a hearing in Wilmington, Delaware, stating it was a "popular alternative" to continue litigation for investor losses. Terraform estimates that as part of the bankruptcy liquidation, it will be able to pay between $184.5 million and $442.2 million to cryptocurrency investors and other stakeholders.Previous news, according to the official announcement from Terra, the confirmation hearing for the Chapter 11 bankruptcy reorganization plan of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) is scheduled for September 19, 2024, at 10 AM Eastern Time (10 PM Beijing Time).

ChainCatcher news, according to Financefeeds, the parent company of crypto-friendly bank Silvergate, Silvergate Capital, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for Delaware. The bankruptcy filing shows that the company's assets are between $100 million and $500 million, with liabilities between $10 million and $50 million. In March 2023, Silvergate Capital announced it would voluntarily liquidate its subsidiary Silvergate Bank, citing challenges in the banking industry due to rising interest rates and regulatory scrutiny following the bankruptcy of crypto exchange FTX in November 2022. Silvergate Bank was known for its close ties to the crypto industry, and its reputation and confidence among clients plummeted after the FTX collapse. In July of this year, Silvergate Capital reached a settlement with the U.S. SEC, the Federal Reserve, and the California Department of Financial Protection and Innovation (DFPI), agreeing to pay $63 million. The Federal Reserve stated that it has ended its enforcement action against Silvergate Capital after Silvergate Bank completed its liquidation plan, repaid deposits, and ceased banking operations.Previous news, the U.S. SEC has sued Silvergate Capital in a federal court, accusing it of securities fraud. The SEC stated that Silvergate misled investors about its banking secrecy policies, anti-money laundering compliance program, and poor financial condition following the collapse of FTX in 2022.

ChainCatcher news, according to The Block, several crypto funds including Pantera Capital and ParaFi Capital have recently purchased a large amount of Metaplex (MPLX) tokens from Wave Digital Assets, which were originally held by FTX assets, and the relevant funds have confirmed this.Sources cited bankruptcy filings stating that FTX assets originally held 72.6 million MPLX tokens. The sources added, citing on-chain data, that 62.6 million of these tokens were privately sold in the past five months. Additionally, 2.5 million tokens were transferred from the FTX wallet last month, leaving 7.5 million tokens remaining for sale, all of which are expected to be unlocked by September 19.

ChainCatcher news indicates that as of August this year, law firms handling seven cryptocurrency bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code since 2022 have requested and received a total of $751 million in fees. Among the largest bankruptcy cases in the crypto industry, the law firms that earned the most fees include Sullivan & Cromwell, Kirkland & Ellis, White & Case, and Cleary Gottlieb. These four firms generated $484 million in revenue from handling cryptocurrency bankruptcy cases. This accounts for 64% of all fees requested and received under Chapter 11 bankruptcy proceedings. Sullivan & Cromwell is the highest-earning firm, with $215 million in revenue. The firm serves as the legal advisor to the debtors of FTX. Kirkland & Ellis ranks second in fees, charging its clients $120 million. The firm is a primary legal advisor to debtors such as Voyager, BlockFi, and Celsius.

ChainCatcher news, Celsius' bankruptcy administrator stated in its first payment status report that over $2.53 billion has been allocated to approximately 251,000 creditors.These payments were made in liquid cryptocurrency and cash at the price as of January 16. The administrator indicated in court documents submitted on Monday that they covered about two-thirds of all eligible creditors of cryptocurrency lenders, accounting for approximately 93% of the eligible value. Additionally, there are 121,000 eligible creditors with an average allocation of about $1,500 who have not yet successfully claimed their allocation. The document states: "Of the remaining creditors, about 64,000 have allocations of less than $100, and about 41,000 have allocations between $100 and $1,000." "Given the small amounts involved for many creditors, they may lack the incentive to take the necessary steps to successfully claim their allocations."

ChainCatcher news, according to Cointelegraph, Bitcoin mining company Rhodium Enterprises has voluntarily filed for Chapter 11 bankruptcy in the Southern District of Texas, with liabilities of up to $100 million. The filing was submitted on August 24 and includes six subsidiaries—Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW. According to the document, the company's debts range from $50 million to $100 million, while its total assets are estimated to be between $100 million and $500 million.Earlier reports indicated that Rhodium's affiliated companies had encountered financial difficulties, and Rhodium's bankruptcy is one of them. It was reported that Rhodium Enterprises, which owns Rhodium Encore and Rhodium 2.0, failed to repay a $54 million loan to creditors in July. In 2021, Rhodium raised a $78 million loan for its subsidiaries.It was reported that the company proposed two debt restructuring plans before the deadline, but disagreements among shareholders led to a default. Under Chapter 11 voluntary bankruptcy, the company will be able to restructure its debts while continuing operations, allowing it to negotiate a repayment plan based on revised terms.

ChainCatcher news, according to The Block, DCG announced in its quarterly shareholder letter this week that it has fully repaid its short-term debts as of June. Over the past 18 months, the company has repaid more than $1 billion to creditors, particularly boosted by strong performance in the first half of this year.It is reported that the only remaining debt for the company is a $1.1 billion promissory note, which is due in 2032, at which point its crypto lending division Genesis will be bankrupt.

ChainCatcher news, according to the official announcement from Terra, the confirmation hearing for the Chapter 11 bankruptcy reorganization plan of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) is scheduled to be held on September 19, 2024, at 10 AM Eastern Time (10 PM Beijing Time).