Bankruptcy

The #bankruptcy exchange #Mt.GOX has again shifted the deadline for paying creditors. Now the victims of the platform's collapse will receive their money only by October 31, 2025

Cryptocurrency #exchange Mt. Gox went bankrupt back in 2014 and has not yet completed the process of paying out funds to creditors affected by the collapse of the trading platform.

The deadline is being pushed back again

The new document states that most creditors have already received basic, interim and early payouts. However, some of the creditors have still not completed all the necessary procedures or have faced some problems during the disbursements.

“Many creditors have still not received their disbursements because they have not completed the necessary procedures to receive them. In addition, a significant number of rehabilitation lenders have not received their disbursements for various reasons, such as problems encountered during the disbursement process,” Mt. Gox said in a statement.

As a result, the deadline to receive these payments has been extended from October 31, 2024 to October 31, 2025 (Japanese time).

Cryptans aren't too upset

As of this writing, $BTC
is trading at $61,074. Over the past 24 hours, the cryptocurrency has slipped just over 1%. At the same time, bitcoin did not show any reaction specifically to the news from #MtGox .

According to Arkham, the Mt. Gox crypto wallet currently holds 44,905 bitcoins totaling over $2.7 billion at the current exchange rate. This is a significant amount of money, which is why many members of the crypto community have long feared that the exchange's payouts could “sink” BTC.

“Now the selling pressure on bitcoin after the $4 billion payout is a problem as early as 2025,” rejoiced a user on X (formerly Twitter) in his tweet.

Meanwhile, the bankrupt exchange has already moved its BTC holdings in the past. For example, on May 28, Mt. Gox moved $8.7 billion worth of crypto. Then representatives explained that this is how the trading platform is preparing for the first payments to creditors.

By the end of July this year, the platform had moved another 37,477 bitcoins worth $2.5 billion (at the exchange rate at the time). After that, the exchange reported that it had already completed 60% of payments to creditors.
#10MTradersLeague

The Cypriot securities regulator has once again extended the suspension of FTX Europe’s operations, allowing customers to withdraw their funds while keeping the platform closed for trading.
Suspension Extended by Another Six Months
The Cyprus Securities and Exchange Commission (CySEC) announced on November 5 that the suspension has been extended until May 30, 2025. This decision prohibits FTX Europe from offering its services, accepting new clients, or advertising in Europe. The regulator is responding to the need to protect client funds and ensure continuity in the restructuring process.

Ban on Operations, But Option to Return Client Funds
FTX Europe is allowed to conduct transactions necessary to return funds to clients, but it cannot expand its services or accept new customers. This suspension has now been extended for the fourth time since the initial operations halt on November 11, 2022, shortly after FTX filed for bankruptcy in the United States.
Brief History of FTX Europe
FTX Europe began operating as a regulated EU investment company offering multi-asset derivative trading only eight months before FTX’s bankruptcy. Following the bankruptcy filing in the U.S., the Cypriot regulator suspended FTX Europe’s license, citing the “suitability of management board members” and the need to protect client assets. Around this time, approximately $600 million in cryptocurrencies was reported to have been drained from FTX wallets.
Sale Back to Original Owners
FTX Europe, originally the Swiss startup Digital Assets AG, was acquired by FTX in 2021 for $323 million. FTX’s restructuring team later attempted to reclaim part of the funds spent on the acquisition due to an alleged “massive overpayment.” This dispute ended with a countersuit from the original owners. In February, an agreement was reached, with FTX selling its European division back to the original founders for $32.7 million.
FTX Europe Website Only for Withdrawals
FTX Europe’s website no longer offers trading, but users can view their balances and request withdrawals. Clients who do not withdraw their funds will see them transferred to a “client segregated account,” where they will be held for up to six years, as indicated in the FAQ section.

#cryptoregulation , #Ftx❓ , #CryptoNewsCommunity , #bankruptcy , #cryptoexchange

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Celsius, a once-prominent crypto lending platform now mired in bankruptcy, has made a significant move by transferring approximately $1 billion worth of Ethereum ($ETH ) to various centralized exchanges. This large-scale transfer has ignited speculation that Celsius may be gearing up to start repaying its creditors as part of its bankruptcy proceedings.
Pivotal Aspects of Celsius's Ethereum Movement
Massive Transfer of Ethereum:
Celsius moved a colossal amount of 443,961 ETH($ETH ) to exchanges like Coinbase Prime, Paxos, and FalconX. This series of transactions took place over January 25 and 26, with the largest single transaction involving 443,961 ETH, equivalent to about $984 million at the time of transfer.
Speculations on Repayment Plans
There is growing speculation that these transfers are a precursor to Celsius beginning repayments to its creditors. The platform has previously indicated that a limited number of corporate accounts might recover cryptocurrency through Coinbase, while distributions to U.S.-based non-corporate accounts are expected to be made via PayPal and for those outside the U.S. through Coinbase.
Ongoing Bankruptcy Proceedings:
Celsius filed for bankruptcy in July 2022 and has since been engaged in a complex restructuring process. The platform's administrators had earlier indicated their intent to notify certain account holders who withdrew substantial amounts before the bankruptcy declaration that they might need to return these funds.
Implications for the Crypto Market
Market Response to the Transfer:
While $ETH prices have remained relatively stable, there's concern about how such large transfers could impact the market, especially considering the current market conditions and the scale of the assets involved.
Creditor Expectations:
The Celsius creditors, are keenly observing these developments, with expectations that repayments could commence as early as mid-February. However, the exact timelines for these distributions are still unclear.
Remaining Assets:
Despite these significant transfers, Celsius reportedly still holds a substantial amount of ETH, valued at nearly $139 million, which could play a role in future creditor repayments.
Final Thoughts:
Celsius's transfer of $1 billion in Ethereum to exchanges is a critical development in its ongoing bankruptcy proceedings. It not only signals potential preparations for repaying creditors but also highlights the ongoing challenges and complexities within the crypto lending market. As the situation unfolds, the crypto community and investors are closely watching for further actions by Celsius, which could have broader implications for the market and the treatment of digital assets in bankruptcy scenarios

#ETH #Celsius #bankruptcy #selling #TrendingTopic