ChainCatcher news, according to Reuters, a U.S. bankruptcy judge stated at a court hearing that the cryptocurrency lending firm Celsius Network may need to seek new creditor votes for its proposal to transform into a Bitcoin mining company. U.S. Bankruptcy Judge Martin Glenn, who oversees Celsius's Chapter 11 bankruptcy proceedings, indicated that this is not a deal approved by creditor votes, and the modified agreement may face strong opposition from creditors.

According to ChainCatcher news reported by CoinDesk, the crypto hedge fund Three Arrows Capital attempted to claim $284 million from the crypto lending platform BlockFi but failed. The U.S. bankruptcy judge overseeing the BlockFi case hopes to include it in the mediation process, ruling that both parties will mediate the $284 million dispute. The mediation window is open until January next year. If the parties cannot reach an agreement during the mediation process, Judge Kaplan has scheduled a two-day hearing on February 5 to determine how much should be paid.

ChainCatcher news, Cointelegraph reports that U.S. Bankruptcy Judge Michael A. Kaplan approved BlockFi's third amended Chapter 11 bankruptcy plan during a court hearing on September 27. The amount repaid to BlockFi's unsecured creditors will largely depend on whether BlockFi can achieve success in its legal battles with FTX and other bankrupt crypto companies. It is estimated that BlockFi owes over 100,000 creditors up to $10 billion, including $1 billion to its three largest creditors and $220 million to the bankrupt crypto hedge fund Three Arrows Capital.

ChainCatcher news, according to Reuters, a U.S. bankruptcy judge has approved Bittrex's request to borrow 250 BTC (7 million USD) from its parent company Aquila Holdings to facilitate the bankruptcy proceedings. Bittrex will also attempt to secure another loan of 450 BTC by applying at a hearing in June; if the price of Bitcoin remains stable before next month, that loan will be worth 12.4 million USD. (source link)

ChainCatcher news, according to Reuters, U.S. bankruptcy judge Michael Wiles approved Voyager's reorganization plan during a hearing in New York, allowing it to sell its assets and transfer its customers to Binance.US. Wiles rejected the previous "vague" objections from the U.S. Securities and Exchange Commission (SEC) regarding Binance's acquisition, as SEC investigators believed that Binance.US was operating an unregistered securities exchange. However, Wiles was not convinced, stating that the agency failed to provide any evidence and should not have raised specific issues at the last minute.Binance has agreed to pay Voyager $20 million in cash and accept the cryptocurrency assets held by Voyager's customers. According to Voyager, the customers' cryptocurrency assets were valued at $1.3 billion in February, accounting for the majority of the transaction's valuation. However, Voyager can still abandon the deal. Its financial advisor stated in court on Friday that the company would need up to four weeks to review new questions regarding Binance.US's commitment to the acquisition, Binance.US's regulatory compliance, and the safety of Binance.US customer deposits. The transaction also faces additional scrutiny from the Committee on Foreign Investment in the United States (CFIUS), which is investigating national security risks related to foreign investment in Voyager. (source link)

ChainCatcher news, according to CoinDesk, U.S. Bankruptcy Court Judge Michael Wiles expressed serious skepticism on Thursday during the Voyager Digital bankruptcy hearing regarding the U.S. Securities and Exchange Commission's (SEC) attempt to block Binance US from acquiring Voyager Digital's assets.Michael Wiles stated, "This is a strange objection, and I feel that this objection is a disguise. The SEC can specifically explain what the issues are, but they have done nothing. I need to know the specifics."The SEC has stated that the transaction should be blocked because Voyager's tokens may constitute unregistered securities. William Uptegrove, representing the SEC, indicated that creditors did not receive sufficient regulatory risk warnings but declined to take a clear stance on whether VGX is a security. (source link)

ChainCatcher news, according to The Wall Street Journal, U.S. Bankruptcy Judge Martin Glenn ruled that approximately $4.2 billion in cryptocurrency held in interest-bearing accounts at the crypto lending platform Celsius Network belongs to Celsius, not to the thousands of customers. The judge's ruling stated that each company's rights to its customers' digital assets are clearly defined in their terms of use, and the contract between Celsius and its users is "clear" regarding the company's ownership, allowing Celsius to use the $4.2 billion in cryptocurrency at its discretion.This decision will directly impact Celsius's ability to sell $18 million in stablecoins to cover costs associated with staying longer in bankruptcy protection. Celsius executives previously testified in bankruptcy court that the company's funds would run out in March, after which they would need to raise money to cover the costs of maintaining bankruptcy protection. (source link)

ChainCatcher news, as part of its investigation, seeks access to FTX's international customer information database on behalf of the Bahamian Securities Commission's lawyers.According to CNBC, Bahamian lawyers submitted an emergency motion to a U.S. bankruptcy judge in Delaware requesting access to FTX's customer database to assist with their ongoing investigation. The motion emphasizes that their previous attempts to access FTX-related databases have all failed. The lawyers claim that FTX's employees and attorneys have obstructed authorities from obtaining critical financial information.The database is stored in Amazon AWS and Google Cloud Portal databases, which include personal information such as wallet addresses, customer balances, deposit and withdrawal records, transaction and accounting data. According to the lawyers, if the motion is granted, it will not harm or complicate the bankruptcy proceedings in the U.S. (Cointelegraph

ChainCatcher news, according to Bloomberg, U.S. bankruptcy judge Martin Glenn has refused to immediately approve Galaxy Digital's $44 million acquisition of Celsius Network's subsidiary self-custody platform GK8, requesting more details about the sale structure, after which the sale may be approved.Martin Glenn expressed surprise at the terms of the deal that would transfer potential legal claims from Celsius to Galaxy Digital, asking Celsius's lawyers for additional evidence regarding the value of the claims. (Bloomberg)

ChainCatcher news, according to Bloomberg, U.S. Bankruptcy Judge Martin Glenn in the Southern District of New York (Manhattan) will rule on the ownership of assets in the interest-bearing accounts of the crypto lending platform Celsius. Previously, Celsius requested Glenn to allow it to sell $18 million worth of crypto assets on its balance sheet, which were deposited by users in interest-bearing accounts before Celsius filed for bankruptcy in July.Glenn will have to decide whether these interest-bearing account assets belong to Celsius or the depositing users, and the ruling on this legal issue will impact other crypto bankruptcy cases. (Bloomberg)

Chain Catcher News, U.S. Bankruptcy Judge Martin Glenn ruled during a court hearing on Friday that the independent examiner for the bankruptcy case of the crypto lending platform Celsius, Shoba Pillay, needs to provide an interim report around mid-November. This report must detail Celsius's financial management and the handling of customer accounts. According to the ruling, this interim report will be crucial in determining who owns the cryptocurrency assets held in the custody and withholding accounts, and under what circumstances the holders of these accounts can access their assets. (CoinDesk)

Chain Catcher News, a bankruptcy judge in the Southern District of New York has approved an order to appoint a neutral third party to review the financial condition of the troubled crypto lending platform Celsius. This process was pushed by attorneys from the Department of Justice, securities regulators, and representatives of creditors and consumers seeking to recover losses, and Celsius itself does not oppose this step. (The Block)