Cryptocurrency Analysis and News Portal
Court-appointed examiner Shoba Pillay submitted her final report on select aspects of operations at bankrupt cryptocurrency Celsius on Jan. 31. The document was commissioned on Sept. 29 and is 470 pages long, not counting the 31 appendices.Pillay is a former federal prosecutor and partner at law firm Jenner & Block.
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“In every key respect—from how Celsius described its contract with its customers to the risks it took with their crypto assets—how Celsius ran its business differed significantly from what Celsius told its customers,” Pillay wrote, after interviewing staffers, including former chief Executive Officer Alex Mashinsky, as well as customers of
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The defunct crypto lender Celsius is exploring the possibility of creating a debt token to repay creditors. The plan would need to be approved by regulators, but if approved by the trustee and financial authorities, the debt token would be called an “asset share token (AST).” Celsius Proposes ‘Asset Share Token’
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Customers are allowed to withdraw funds transferred to the platform after the bankruptcy petition date in the form of crypto "net of any gas fees or transaction costs," according to the order. The withdrawals will need to be approved by the appointed committee of creditors should the transfer amount exceed
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On Monday, the New York Department of Financial Services (NYDFS) published guidance on custodial structures to help protect customers’ money if a crypto firm goes bankrupt. New York’s top financial regulator stressed that businesses should not commingle customer funds and that customer funds should be segregated with separate accounting. FTX Collapse
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After crypto exchange FTX's bankruptcy proceedings revealed poor segregation of customer funds, the New York regulator is reminding service providers to keep clean records. Source
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“But when you dollarize – regardless of what digital asset it is, what form of asset it is – as of the petition date, that is essentially giving the debtors the power to liquidate whatever’s on the exchange and say, ‘This is what you get at the bottom of the
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Shortly after FTX filed for bankruptcy, about $372 million worth of tokens were stolen from the exchange by an unknown actor thought to be an external hacker. Given media reports of a cyberattack on FTX, and possible looting of FTX-controlled wallets by former employees, the Commission said in its media
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The FTX-owned Japanese crypto exchange Liquid has announced plans to begin the process of returning customer assets in 2023. According to the Dec. 29 statement issued on its blog, the exchange is preparing to return assets entrusted by both customers from FTX Japan and Liquid Japan, and is working on a
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On Dec. 23, 2022, Matthew Russell Lee from the Inner City Press published the recently unsealed guilty plea transcript of Caroline Ellison, Alameda Research’s former CEO. In her statements, Ellison describes that she was the co-CEO and CEO of Alameda, and under those roles, she reported directly to the former
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