DeFI News by Thebittimes.Com

FTX, the defunct cryptocurrency exchange founded by Sam Bankman-Fried, will start a $1.6 billion distribution to verified creditors on September 30, marking its third payout under bankruptcy proceedings. The payment will be disbursed to creditors within one to three business days via Bitgo, Kraken, or Payoneer, covering both so-called Convenience and Non-Convenience classes, an  announcement said. FTX will pay out $1.6B to creditors on September 30th. Will they buy, or will they sell??? pic.twitter.com/F2bkBeTl35 — Kyle Chassé / DD🐸 (@kyle_chasse) September 19, 2025 Smaller victims with claims under $50,000 are set to recover 120% of their funds, while international customers’ cumulative recovery will climb to 78%. The latest distribution underscores FTX’s progress in repaying creditors, with more than $15 billion recovered so far toward an estimated $16.5 billion liability. Eligibility Depends On Pre-Distribution Compliance Creditors are ...

RootData, a provider of visual and structured data on companies in the digital finance industry, has published a list of deceased crypto projects that failed to make it through 2023. The biggest names to make the list were Prime Trust, Yield Protocol, Wyre, Multichain and Clockwork. In total, the RootData list included 116 crypto projects that announced their closure or bankruptcy in 2023 and had inactive Internet resources for a long time. RootData analysts note: in total, the funds previously allocated for creating and financing “dead projects of 2023” exceeded $940 million. The most difficult period and the peak of the most high-profile fiascoes was the second half of 2023. At the end of June, amid the consequences of the crypto winter and Bolt Financial’s refusal to purchase, the Wyre payment platform closed. In July, after the arrest of its founder and a series of hacks, Multichain went bankrupt. You might also like: SafeMoon seeks bankruptcy amid arrests and SE...

Bankrupt crypto exchange FTX seeks details about the millions of dollars it had earlier donated to the Center for AI Safety (CAIS). New details were revealed in an Oct. 25 filing in a Delaware Bankruptcy Court. FTX’s legal team stated that the exchange had donated $6.5 million to CAIS, a nonprofit focused on AI safety, between May and September 2022. This was just months before FTX faced financial collapse and filed for bankruptcy. The exchange now requests the court’s permission to issue subpoenas requiring CAIS to disclose any payments , funds, communications, or agreements with FTX, its affiliates, and former executives. FTX alleges that CAIS has been unresponsive to its requests for voluntary accounting related to the financial transfers between the two entities. The exchange further revealed that there had been communications between the firms, including an August phone call and emails in early October. You might also like: Breaking: FTX founder Sam Bankman-...

Genesis Global is suing its parent company, Digital Currency Group (DCG), to recover $620 million in unpaid loans amid ongoing bankruptcy proceedings and settlement talks. The lawsuit was filed in a New York bankruptcy court on Wednesday, Sep. 6. Genesis’ lawsuit centers on loans they claim matured in May. This debt includes a $500 million loan to DCG and another to DCG International Investments Ltd., worth roughly 4,550 Bitcoin (BTC). The lawsuit also aims to recover accrued interest and late fees. “The action to freeze the turnover has been mutually deferred so that a formal agreement, agreed upon in principle among Genesis, the UCC [Unsecured Creditors Committee], and DCG, can be thoroughly documented.” DCG representative told Bloomberg The loans will be repaid once a formal standstill agreement is legally prepared and presented to the bankruptcy court. Genesis Global filed for Chapter 11 bankruptcy protection earlier this year, joining a string of crypt...

It is understood that BlockFi wants to get bids in quickly as possible to make the most of the current market conditions. Bankrupt crypto lender BlockFi has been granted court approval to sell off its crypto mining equipment as part of ongoing efforts to  repay its creditors. A court document filed on Jan. 30 in the United States Bankruptcy Court for the District of New Jersey stated that the approval for BlockFi to sell its assets was on the grounds that it was “fair, reasonable and appropriate under the circumstances.” The court acknowledged the sale of the assets is “designed” to maximize the recovery and “realizable value” of the company. With the court giving BlockFi the green light, more bids are now expected to roll in for the crypto lender's crypto mining assets. The document stated “all qualified bids” must be sent to the parties specified in the bidding procedures by the Feb. 20 deadline. The bids must be filed with the court by Mar. 2 and the creditor's representat...

Cumberland – an institutionally focused crypto asset trading company – claims Genesis published misleading information about its unsecured claims against the lending giant in its bankruptcy filing on Thursday.  Clearing the Air on Creditor’s Claims “Genesis’ bankruptcy filing today reflects misleading and incorrect information, and as part of our commitment to transparency, we are providing more details,” said Cumberland over Twitter on Friday.  The filing , which provided a list of 50 creditors with the largest unsecured claims, listed Cumberland as number 37, citing an “unliquidated” claim of 18,720,061. Cumberland, however, said it notified Genesis that it would liquidate its $18 million loan on November 16, surrendering its cash collateral and closing out the loan. The loan was fully collateralized.  KYC & Audit Solutions! SolidProof “This left an outstanding balance due to us of approximately $46,064.34 consistent with our November tweet,” the compan...

The Bitcoin mining community took up massive loans during the 2021 bull market, negatively impacting their bottom lines during a subsequent bear market. The recent Bankruptcy filing of Bitcoin (BTC) miner Core Scientific despite a $72M relief offer from creditors raised questions about the overall health of the Bitcoin Mining community amid a prolonged bear market. Turns out, the public Bitcoin miners owe more than $4 billion in liabilities and require an immediate restructuring to get out of the unsustainably high debt levels. The Bitcoin mining community took up massive loans during the 2021 bull market, negatively impacting their bottom lines during a subsequent bear market. Bitcoin mining data analytics by Hashrate Index show that just the top 10 Bitcoin mining debtors cumulatively owe over $2.6 billion. Public Bitcoin mining companies with highest debt. Source: Hashrate Index Core Scientific, the biggest debtor among the lot — with $1.3 billion in liabilities on its balance sheet...

The community has been questioning Gemini for not listing Cardano [ ADA ], despite it being a top ten token. Rick McCracken, the Project Manager at DripDropz—a token delivery platform built on the Cardano blockchain—asked the founders of the exchange, Tyler and Cameron Winklevoss, their reason for not listing ADA , despite having the native tokens of other Proof of Stake protocols. Cardano Founder Charles Hoskinson replied back to the same and said that not listing the ADA token was “pretty tightly correlated with bankruptcy and risky behavior.” At this point, not listing ada is pretty tightly correlated with bankruptcy and risky behavior. Makes you think… https://t.co/VS4UI2sg9K — Charles Hoskinson (@IOHK_Charles) December 4, 2022 The macro state of affairs Companies from the crypto space are currently trying to find their feet and stand up post the FTX episode. Crypto exchange Gemini, on its part, is reportedly trying to recover ...

Marathon has outlined that at this stage its operations hosted by Compute North will continue to operate as usual, and highlighted an improved BTC mining production in Q3. Source: https://thebittimes.com/marathon-reports-80m-exposure-to-bankrupt-mining-firm-tbt25725.html?utm_source=blogger_source&utm_medium=blogger_medium&utm_campaign=blogger_cam Category: Bitcoin News Post by: TheBitTimes.com