The US Department of Justice (DOJ) has initiated a review of how victims of digital asset fraud are compensated, following concerns over outdated valuation methods. According to a recent internal DOJ memo, many investors affected by crypto platform collapses, such as FTX, Celsius, Voyager, Genesis, BlockFi, and Gemini Trust, have only received reimbursement based on […]
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Bankrupt FTX has received court approval to reject creditor claims from users who failed to begin the Know Your Customer (KYC) process before March 3, 2025. The April 2 court filing includes 2,378 pages of invalidated claims, representing around 500,000 entries. The court order clearly disallows any claim listed that is not backed by KYC […]
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Backpack, which purchased FTX EU for $32.7 million in January, directed customers to complete the first step of KYC verification.
With a May 15 deadline looming, just 43% of non-U.S. customers have claimed their distributions.
Crypto exchange Backpack has officially launched the claims process for users of the now-defunct FTX EU platform, according to an April 1 statement. BackPack CEO Armani Ferrante said: “It’s been a long, complicated process with multiple parties, but we’re happy to finally open up identity verification for FTX EU customers on [our website.]” According to […]
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Payments to FTX’s largest creditors will start May 30, nearly three years after the exchange collapsed.
Terraform Labs, the bankrupt firm behind the failed TerraUSD (UST) stablecoin, has launched a crypto claims portal. This platform is designed to compensate users affected by the project’s dramatic crash in 2022. Creditors can submit claims between March 31 and April 30, 2025. Claims submitted after the deadline will not be considered. To file a […]
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The Sei Foundation is exploring the acquisition of 23andMe, a bankrupt genetic testing company, with plans to bring its data infrastructure onto the Sei blockchain. In a statement released on March 27, the Foundation revealed that the acquisition would mark a significant step toward protecting genetic data through on-chain solutions. According to the Foundation: “We […]
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Large movements in the past have occasionally preceded creditor repayments, which have a deadline set for this October.
Sen. Warren raised concerns over potential incoming SEC Chair Paul Atkins' ties to collapsed crypto exchange FTX in a letter on Sunday.
A US bankruptcy court has ruled in favor of Three Arrows Capital (3AC), allowing the failed crypto hedge fund to increase its claim against the collapsed exchange FTX to $1.53 billion. This decision significantly raises the initial $120 million claim sought by 3AC’s liquidators. Legal battle According to the March 13 court filing, 3AC’s liquidators […]
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The ruling came despite FTX's argument that the motion to amend claims was untimely and would disrupt its reorganization plan.
Defunct FTX and its affiliate, Alameda Research, have unstaked and transferred 185,345 Solana (SOL), valued at $22.9 million, to 38 wallets within the past day, according to blockchain analytics platform SpotOnChain. Blockchain intelligence firm Arkham Intelligence corroborated the development and reported that the recipient wallets, which had previously received assets from staking addresses, now collectively […]
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Kraken reportedly confirmed that the second phase of FTX creditor repayments will start on May 30. On March 6, FTX creditors’ representative Sunil Kavuri shared a screenshot of an email allegedly from Kraken. The email indicated that the exchange would initiate another round of repayments in May for customers affected by FTX’s 2022 collapse. According […]
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A US federal court has postponed a key hearing in the case against Terraform Labs co-founder Do Kwon after prosecutors submitted an extensive amount of new evidence, significantly broadening the case. According to court filings, the status conference, originally scheduled for March 10 in the Southern District of New York, has been pushed to April […]
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Sunil Kavuri, a representative of the FTX Creditors’ group, revealed that the bankrupt crypto exchange is exploring ways to compensate creditors in multiple countries, including Russia, China, Egypt, Nigeria, and Ukraine. According to Kavuri, creditors from these regions are currently excluded from ongoing distributions despite making up a significant portion of FTX’s user base. For […]
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Sam Bankman-Fried, the convicted founder of the collapsed FTX exchange, maintains his innocence, claiming political bias influenced his prosecution. In an interview with The New York Sun, he argued that his case was unfairly handled and suggested that his legal troubles stemmed from his shifting political stance. This interview emerged less than a few days […]
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Creditors of the defunct crypto exchange FTX have begun receiving their initial payouts in their Kraken accounts, marking a major milestone in the company’s ongoing bankruptcy proceedings. Claimants with approved amounts under $50,000 are receiving full reimbursements, plus 9% annual interest accrued since FTX filed for Chapter 11 bankruptcy in November 2022. Screenshots shared online […]
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The payments are being distributed in U.S. dollars through BitGo and Kraken.
An initial batch of customers of bankrupt exchange FTX are beginning to receive their funds over the next few days.
A phishing attack is targeting FTX creditors just days before the bankrupt exchange begins its long-awaited payout process. On Feb. 16, FTX creditor Sunil Kavuri sounded the alarm on X about a potential data leak, warning that scammers are now sending phishing emails to creditors. According to Kavuri, the leak likely stems from FTX or […]
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Lawyers for former Celsius Network CEO Alex Mashinsky have asked a federal judge to postpone his sentencing by one month, citing the complexities of the case and the volume of material requiring review, according to a Feb. 5 court filing. Mashinsky, who pleaded guilty in his fraud case, is scheduled to be sentenced on April […]
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WazirX creditors will decide in the coming weeks whether to begin receiving compensation for their lost crypto as early as April 2025 or face a prolonged recovery process that could extend to 2030. The vote follows a Singapore High Court ruling allowing the embattled Indian exchange to pursue a restructuring plan rather than face liquidation. The […]
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FTX is set to begin distributing funds to small creditors on Feb. 18, marking a key development in the defunct crypto exchange’s bankruptcy process. The Joint Official Liquidators (JOLs) of FTX Digital Markets Ltd. confirmed Tuesday that creditors with approved Convenience Class claims — valued at $50,000 or less — will receive full repayment along […]
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FTX Digital Market's liquidator PwC had stated that non-Convenience Class creditors expected to receive reimbursement in Q2 2025.
The Singapore High Court has approved Zettai Pte Ltd’s request to convene a meeting with creditors of the crypto exchange WazirX, allowing the company to present its restructuring proposal. The decision is a critical step in Zettai’s efforts to address debts and recover from the $230 million hack of WazirX linked to North Korea’s Lazarus […]
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The bankrupt FTX exchange has challenged the announced sale of its European subsidiary, FTX EU, to Backpack, a crypto platform founded by former FTX employees. In a Jan. 8 statement, FTX clarified that its subsidiary FTX Europe AG wholly owns FTX EU. The company stated that the anticipated transfer of FTX EU shares to former […]
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An FTX creditor Lidia Favario has raised concerns about the excessive spending by bankruptcy managers handling the defunct exchange’s proceedings, according to a court filing. In a letter to Judge John Dorsey, Favario described the spending as extravagant and inconsistent with the Department of Justice (DOJ) guidelines on reasonable expenses. Questionable expenses Favario cited specific […]
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Backpack, a crypto exchange founded by former FTX executives, has taken a significant step into the European market by acquiring FTX EU, the European arm of the defunct FTX platform. According to a Jan. 7 statement, the acquisition was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC). European expansion […]
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Backpack EU will be responsible for distributing court-approved FTX bankruptcy claims to FTX EU customers as part of the acquisition.