ChainCatcher news, FTX's bankruptcy administrator is being sued by creditor Lidia Favario for extravagant spending. Favario pointed out that the bankruptcy administrator's expenses during the handling of the FTX bankruptcy proceedings were excessively luxurious, including high-end hotel accommodations and exorbitant transportation costs. She mentioned that A&M professionals spent $971.74 for one night at a luxury hotel in New York, and one professional spent $1,733 on a taxi.Additionally, FTX paid $2,683 to have three taxis wait for CEO John Ray's testimony. Favario is urging the court to expand the review of expenses to ensure compliance with the Department of Justice's reasonable spending standards.

ChainCatcher news, Backpack Exchange, founded by former FTX and Alameda employees, has acquired the bankrupt FTX's former European entity for $32.7 million to expand its derivatives business in the region.FTX EU is one of the business units that ultimately went bankrupt after FTX collapsed in 2022. As part of the acquisition, Dubai-based Backpack will be responsible for distributing approximately €53 million ($55 million) in FTX bankruptcy claims previously approved by the court to FTX EU customers.The FTX bankruptcy asset manager filed a lawsuit attempting to recover millions of dollars from the original owners of FTX EU. The lawsuit was ultimately dismissed as part of a settlement agreement, which included the resale of the unit to FTX Europe's co-founders Patrick Gruhn and Robin Matzke. Backpack purchased the company from the co-founders. (Bloomberg)Yesterday's news, Backpack Exchange has received approval from the Cyprus Securities and Exchange Commission and the FTX bankruptcy court to officially acquire FTX EU. Backpack Exchange will be responsible for distributing the previously court-approved bankruptcy claims for FTX EU users.The trading platform is valued at $120 million in its Series A funding round in early 2024 and has obtained licenses from Dubai VARA and EU MiFID II. The newly established Backpack EU plans to launch in the first quarter of 2025, offering cryptocurrency derivatives trading services, supporting SEP A payments and major European currency wire transfers.

ChainCatcher news, according to Jinshi reports, data from S&P Global Market Intelligence shows that the number of corporate bankruptcy filings in the United States will reach 686 in 2024, an increase of 8% year-on-year, marking the highest level since 2010 (828 filings). Among them, at least 30 companies have debts exceeding $1 billion at the time of bankruptcy, including well-known companies like Party City, Tupperware, and Red Lobster.Specific data shows that there were only 777 corporate bankruptcy filings in the United States from 2021 to 2022, which surged to 636 in 2023. Fitch Ratings data indicates that the ratio of out-of-court restructurings to bankruptcies in 2024 is about 2:1, with the recovery rate for senior loans of issuers with total debts exceeding $100 million dropping to the lowest level since 2016.Gregory Daco, chief economist at EY, pointed out that rising costs of goods and services continue to suppress consumer demand, leading to cautious spending across all income groups. Although the Federal Reserve has begun to cut interest rates, it plans to lower rates by only an additional 50 basis points by 2025. Experts at Academy Securities believe that the current corporate bankruptcies pose limited risks of a chain reaction to the overall economy and banking system, but it is necessary to continue monitoring corporate debt conditions in a high-interest-rate environment.

ChainCatcher news, according to Dailyhodl, the Federal Deposit Insurance Corporation (FDIC) stated in its quarterly bank profile report that the number of U.S. banks on its "problem bank list" rose to 68 in the third quarter. The total assets held by problem banks increased by $3.9 billion, reaching $87.3 billion. Problem banks account for 1.5% of the total number of banks, which is within the normal range of 1% to 2% for all banks during non-crisis periods.Meanwhile, the amount of unrealized losses on bank balance sheets has decreased. As of the third quarter of this year, banks reported book losses of $364 billion, primarily due to their involvement in the residential real estate and treasury markets. Unrealized losses represent the difference between the price banks paid for securities and the current market value of those assets. In the third quarter, bank book losses decreased by $148.9 billion from $512.9 billion in the second quarter.

ChainCatcher message, according to recent court documents, the government believes that Sam Bankman-Fried's claims are baseless, asserting that the jury's verdict and trial outcome are reasonable.SBF had filed a request in September with the Second Circuit Court of Appeals to overturn his conviction. He argued that Judge Lewis Kaplan's judicial bias and procedural errors undermined his trial. Bankman-Fried stated that the judge's decisions limited key defense arguments and restricted evidence regarding his investments. He also suggested that FTX's financial issues were exaggerated, implying that customers could still recover their funds.The government dismissed these arguments, pointing out that SBF's appeal failed to demonstrate any errors or biases in the original trial. The government also supported the denial of SBF's request to compel third-party debtors to provide specific documents, stating that the court's actions were correct since those documents were not in the court's possession.

ChainCatcher news, CryptoQuant founder and CEO Ki Young Ju posted on the X platform that the probability of MicroStrategy going bankrupt is extremely low. For 15 years, Bitcoin has never fallen below the cost basis of long-term holders, which is currently around $30,000. MicroStrategy's debt is $7 billion, while the value of its Bitcoin holdings is $46 billion. Based solely on its Bitcoin holdings, its liquidation price is $16,500.

ChainCatcher news, according to Cointelegraph, the FTX bankruptcy group is seeking to recover over $100 million from SkyBridge Capital and founder Anthony Scaramucci to reclaim funds spent by former FTX CEO Sam Bankman-Fried (SBF) on sponsorship and investment agreements made with Scaramucci and SkyBridge since 2022.According to legal documents dated November 8, before FTX's collapse, Bankman-Fried engaged in a series of investments and partnerships with SkyBridge Capital and Scaramucci—first providing a $12 million sponsorship for Scaramucci's SALT conference in January 2022.Shortly thereafter, in March 2022, SBF directed Alameda Research to invest $10 million in the SkyBridge Coin Fund. Later, in September 2022, FTX acquired a 30% stake in the operating company managing SkyBridge investment vehicles for $45 million. FTX's lawyers argue that this investment lacked financial prudence—believing that "the FTX group could have easily purchased a basket of cryptocurrencies for a significantly lower cost than the majority of the $45 million investment."

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 RootData market data, the "bankruptcy" concept tokens are leading the rise, among which:FTT briefly touched $2.99, currently quoted at $2.5, with a 24-hour increase of 80.58%;USTC (TerraClassicUSD) currently quoted at $0.0274, with a 24-hour increase of 47.47%;LUNA currently quoted at $0.48, with a 24-hour increase of 18.56%;LUNC currently quoted at $0.0001, with a 24-hour increase of 17.11%.

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 Cointelegraph, the U.S. Securities and Exchange Commission (SEC) seems to have made concessions in its proposed crypto accounting policy SAB 121.According to an analysis by Galaxy's research director, the SEC's chief accountant Paul Munter has proposed some exemptions that allow bank holding companies and introducing brokers to circumvent the custody provisions in SAB-121.If banks obtain written permission from state regulators to custody customer assets in a bankruptcy-remote manner, clearly specify standards in contracts, and conduct regular risk assessments, they can avoid the reporting requirements of SAB-121. Introducing brokers can also be exempt from SAB-121 requirements by meeting three conditions. Brokers cannot hold customers' private keys, cannot act as a third party or agent for introducing brokers in transactions. Introducing brokers must obtain a legal opinion stating that they qualify as introducing brokers under the digital asset exemption conditions.