ChainCatcher news, the decentralized cross-chain liquidity protocol THORChain announced this morning the implementation of a 90-day network restructuring plan. Node operators have suspended THORFi lending and savings redemption functions, but core functionalities such as Swap transactions, liquidity provision (LP) operations, and RUNE transfers remain operational.The project team stated that during the restructuring period, the focus will be on community proposals to achieve a reasonable restructuring of liabilities. Node operators plan to meet with proposal authors early next week to discuss specific solutions. Relevant proposals have been submitted on the THORChain developer community Discord, and the project team emphasizes that they will ensure the comprehensiveness and feasibility of the solutions through open dialogue.

ChainCatcher news, according to X user TCB, THORChain is currently in a state of insolvency. Data shows that THORChain's current liabilities include $97 million in loans (ETH and BTC) and approximately $102 million in savings and synthetic assets, while available assets are only $107 million in external liquidity.TCB stated that THORChain's borrowing obligations are fulfilled by minting and selling RUNE tokens, a design that has led to high reflexivity, exacerbating the problem. After repaying $4 million in RUNE liabilities yesterday, the protocol has accrued additional millions in RUNE debt. Validator nodes have paused network operations and are voting on a restructuring plan.THORChain faces two options: first, to maintain the status quo, where about 5-7% of the value will be withdrawn by the first exiters, causing RUNE to continue to decline; second, to declare a debt default, retaining valuable parts through bankruptcy restructuring, and gradually repaying creditors without affecting the protocol's viability. TCB recommends adopting the second option, protecting liquidity providers' rights, maintaining network value, and achieving long-term development.

ChainCatcher news, Indian cryptocurrency exchange WazirX suffered a $235 million cyber attack in July 2024, and the company announced a restructuring plan aimed at compensating affected users. WazirX's parent company Zettai applied to the Singapore High Court in August 2024 for a debt moratorium and proposed a restructuring plan under Singapore's scheme.As of December 2024, WazirX reported liquid assets of $566.38 million, exceeding the total claims of $546.47 million USDT submitted by users in July 2024.

ChainCatcher news, according to Bloomberg, Donald R. Wilson, the founder of one of the world's largest trading firms, DRW Holdings LLC, stated in an interview that the regulatory framework of the U.S. securities industry needs to be rethought.He pointed out, "The friction between the SEC and CFTC has always been a counterproductive force, suggesting starting from scratch, abolishing the existing SEC and CFTC, and creating a brand new regulatory agency."

ChainCatcher news, according to informed sources, President-elect Trump is considering a reshuffle of the leadership of the Federal Bureau of Investigation (FBI), including the dismissal of the FBI Director.Informed sources revealed that Trump is considering appointing former FBI agent and former Michigan Congressman Mike Rogers as the next FBI Director, while appointing former federal prosecutor Kash Patel as the Deputy Director of the FBI.

ChainCatcher news, FTX Trading Ltd. and its affiliated debtors announced that FTX is nearing the completion of the final prerequisites for the court-approved bankruptcy reorganization plan, paving the way for FTX to begin distributing compensation to creditors and customers. The effectiveness of the bankruptcy reorganization plan means that the court-approved reorganization plan officially begins implementation. This typically marks a critical step in the bankruptcy process, where the bankrupt company has reached agreements with creditors and other stakeholders and is prepared to proceed with actual debt repayment and asset distribution according to the plan.FTX provided the following update regarding the expected distribution timeline:In early December, the debtors expect to finalize arrangements with professional distribution agents who will assist FTX in distributing compensation to global customers within supported jurisdictions. At that time, the debtors will provide instructions to guide customers in establishing approved accounts on the existing customer portal.By the end of December, the debtors expect to announce the exact effective date after the court order approving the disputed claims reserve amount, which is a prerequisite for distribution according to the confirmation order.The debtors currently anticipate that the bankruptcy reorganization plan will become effective in early January 2025. According to the confirmation order, the first distributions will occur within 60 days after the effective date, targeting convenience class creditors allowed to claim under the plan. The record date for the initial distribution will be the same as the effective date.

ChainCatcher news, according to Decrypt, WazirX plans to submit over 240,000 wallet addresses and balances to the Singapore High Court during its debt restructuring, aiming to enhance transparency and restore user trust.Previously, the exchange had frozen user funds due to a $230 million network attack in July and suspended most cryptocurrency withdrawal services. WazirX is currently undergoing legal restructuring and is working to restore user access and return funds.

ChainCatcher news, according to Fortune, as OpenAI's valuation skyrockets to $157 billion, its unique hybrid structure of nonprofit and for-profit is facing severe challenges. Experts believe that OpenAI may have reached or exceeded the limits of its corporate structure, which could lead to costly and complex restructuring. OpenAI currently operates as a nonprofit organization with the mission of developing artificial intelligence that benefits "all of humanity," while controlling a for-profit subsidiary. UCLA law professor Jill Horwitz emphasizes that when conflicts arise between the nonprofit and for-profit sectors, charitable purposes must take precedence.If the nonprofit sector loses control over its subsidiary, OpenAI may need to pay fair market value for interests and assets that originally belonged to the nonprofit sector. This involves complex asset evaluations, including intellectual property, patents, commercial products, and licenses. Experts anticipate that OpenAI may face rigorous scrutiny from the IRS, the Delaware Attorney General's office, and the California Attorney General's office.OpenAI CEO Sam Altman recently confirmed that the company is considering restructuring, potentially transitioning to a public benefit corporation, but specific details have not been disclosed. OpenAI board chair Bret Taylor stated that the board is focused on fulfilling its fiduciary duties, and any potential restructuring will ensure that the nonprofit organization continues to exist and thrive. However, some observers, including former board member Elon Musk, express skepticism about whether OpenAI remains true to its mission.

ChainCatcher news, according to The Block, FTX's restructuring administrator disclosed the voting results of its restructuring plan, with over 94% of FTX Dotcom customers voting in favor.Monday's filing shows that in the "dotcom customer equity claims" category that participated in the vote, 94.48% of creditors (by value, with claims amounting to approximately $6.83 billion) support the restructuring plan. The confirmation hearing for the restructuring plan is scheduled for October 7.According to FTX's bankruptcy plan, approximately 98% of creditors are expected to receive at least 118% of the value of their claims in cash. However, these bankruptcy claims are assessed based on the value of the relevant cryptocurrencies at the time.

ChainCatcher news, according to The Block, based on a newly disclosed agreement, FTX debtors will allocate up to $230 million from the proceeds of government seizure actions to compensate preferred shareholders. The finalization of this agreement after the deadline for FTX creditors to vote on the claims plan, and its announcement 30 days later, has surprised and angered some creditors. Before the voting deadline on August 16, creditors overwhelmingly approved the FTX restructuring plan, but they were unaware of this provision. Although shareholders typically receive compensation last in bankruptcy proceedings, FTX debtors stated that compensating preferred shareholders would help avoid high litigation costs and delays associated with the seized proceeds.Additionally, according to the latest FTX bankruptcy filings, the claims plan has not yet been approved by the court. The next court hearing to confirm the restructuring plan is scheduled for October 7, 2024. If the plan is approved, creditors with claims under $50,000 may begin to receive compensation by the end of 2024. Those with larger claims may have to wait until the first or second quarter of 2025 to receive compensation.

ChainCatcher message, WazirX posted on X that it plans to hold the second Townhall meeting on September 16 at 18:00 to discuss the proposed restructuring plan draft.

ChainCatcher news, the Indian cryptocurrency exchange WazirX, which was previously hacked, stated that the reason for applying for a stay order in the Singapore High Court is to have breathing space to finalize solutions for restructuring and compensation, and during the stay period, it will seek to negotiate with potential investors. WazirX primarily seeks the following relief measures in its stay order application:An order prohibiting any resolutions regarding liquidation;An order prohibiting any lawsuits against WazirX from being initiated or continued, unless permitted by the court and in accordance with the terms set by the court;An order prohibiting any execution, seizure, or other legal proceedings against any property of WazirX, unless permitted by the court and in accordance with the conditions set by the court.These relief measures are essentially protective, allowing WazirX to focus on finding solutions for its platform users.

ChainCatcher news, the legal advisor of the Indian cryptocurrency exchange WazirX stated that the possibility of WazirX customers receiving full compensation for their cryptocurrencies through the restructuring process is extremely low.Advisors indicated that, under the current circumstances, it is unlikely that any customer will recover at least 43% of the funds held by WazirX. Restructuring expert George Gwee from Kroll stated that the best-case scenario for fund recovery is between 55% and 57%.

ChainCatcher news, WazirX tweeted that it plans to hold its first Townhall meeting on September 2 at 16:00 to discuss the restructuring and the Moratorium Application.Previous news, the Indian crypto exchange WazirX has submitted a Moratorium application to the Singapore High Court. WazirX expects that, according to the planned restructuring, the impact of the cyber attack will be proportionally allocated to users of the same class as unsecured creditors, and users will receive a share of the available token assets related to the platform, proportional to their share.

ChainCatcher message, WazirX stated on social media: "The decision to take a restructuring path may raise some concerns, but we want to emphasize that this is the most favorable and legitimate way to address the current crypto-related issues.We believe this direction is in the best interest of the platform's users, allowing us to move forward effectively. Unfortunately, external parties who have not invested in the platform may attempt to prolong this situation for their own reasons. Their intent seems to be to maintain uncertainty rather than seek solutions.Our primary goal is to help users recover as much of their funds as possible while exploring ways to enhance value. Rest assured, we are continuously evaluating all available options, but as mentioned, these solutions require time and patience.Additionally, we are actively seeking various legal avenues and bounty programs to recover stolen assets. These efforts are ongoing, and we remain fully committed to achieving the best outcomes for our users.We will provide more details about the restructuring process next week. Please remember, this is not bankruptcy or liquidation—those paths take years to resolve. Be cautious of individuals who may attempt to guide you into making choices for personal gain.Unfortunately, some people are trying to exploit this situation for their own benefit. We encourage everyone to focus on achieving the most effective and swift resolution through restructuring."

ChainCatcher news, according to The Block, the latest documents in the FTX bankruptcy case show that the U.S. trustee and some creditors have raised objections to the exchange's revised reorganization plan. U.S. trustee Andrew R. Vara pointed out ten major flaws in the plan, primarily concerning the overly broad scope of legal waivers, unequal compensation for creditors, and the refusal to bear costs related to data breaches.Vara specifically emphasized that "convenience" category customers will receive a lower compensation ratio solely due to their smaller claim amounts.At the same time, the largest group of FTX creditors, represented by Sunil Kavuri, has also submitted a complaint, questioning the plan's waiver provisions as too broad and calling for the establishment of a physical repayment mechanism to avoid triggering taxable events for creditors.Currently, the confirmation hearing is scheduled for October 7, Beijing time, and it is expected that no further objections will be submitted. These objections could have a significant impact on FTX's reorganization process.