FTX Payouts Begin as Bitcoin Takes a Dip 🚀
To begin the last edition of your favorite weekly news round-up for the month…
Years of waiting have gone by, and FTX creditors can finally see some light at the end of the bankruptcy tunnel. That’s some massive payout on the horizon while Bitcoin’s out here giving us the familiar “here we go again” feeling.
Seems like a proper correction after partying too hard at $88k. But hey, that’s crypto as we know it. And elsewhere, the SEC is suddenly playing nice with Crypto.com, Kraken, and Consensys. Maybe a new administration, new rules..
Here are the highlights:
- FTX to Begin $11.4B Creditor Payouts in May After Years-Long Bankruptcy Battle
- Bitcoin tumbles below $82k as global markets grapple with impending ‘Liberation Day’
- Trump pardons 3 BitMEX co-founders
- SEC Drops Cases Against Crypto.com, Kraken, Consensys
FTX to Begin $11.4B Creditor Payouts in May After Years-Long Bankruptcy Battle
FTX, the collapsed cryptocurrency exchange once helmed by Sam Bankman-Fried, plans to begin paying its main creditors at the end of May, Bloomberg reported based on court proceedings in Delaware this week. The company has gathered $11.4 billion in cash to distribute to thousands of parties affected by its 2022 bankruptcy, with the first payments to major creditors set for May 30. These include institutional investors and firms that held crypto on FTX’s platform. Smaller creditors with claims below the $50,000 mark have already begun receiving distributions. FTX’s collapse left a financial crater and a trail of frustrated creditors—many of whom expected to be repaid in crypto, not dollars.
Bitcoin tumbles below $82k as global markets grapple with impending ‘Liberation Day’
Bitcoin is starting the week around $81,800, marking a 1.98% decrease over the past 24 hours and continuing a weeklong downtrend that has seen the asset fall over 7% from its March 25 local peak of $88,400. The sustained decline has triggered roughly $220 million in liquidated crypto positions, extending Bitcoin’s streak of lower lows to a seventh consecutive day. The pullback coincides with widespread losses across the broader digital asset market. The global crypto market capitalization has dropped to $2.65 trillion, a 1.77% decrease over the same 24-hour period, and daily trading volume has fallen by 1.4% to $57 billion.
Trump pardons 3 BitMEX co-founders
US President Donald Trump reportedly issued pardons to three co-founders of the cryptocurrency exchange BitMEX, who had pleaded guilty to felony charges. According to a March 28 CNBC report, Trump granted pardons to Arthur Hayes, Benjamin Delo and Samuel Reed, who were facing a range of criminal charges related to money laundering or violations of the Bank Secrecy Act. Hayes and Delo pleaded guilty in February 2022, admitting they “willfully fail[ed] to establish, implement and maintain an Anti-Money Laundering program” at BitMEX, while Reed entered a plea a few weeks later.
SEC Drops Cases Against Crypto.com, Kraken, Consensys
The U.S. Securities and Exchange Commission (SEC) has officially closed a number of cases against the crypto industry, including Crypto.com, Kraken, and Consensys. In a statement, Crypto.com revealed that the regulator had dropped its case and will not file enforcement against it. “We are pleased that the current SEC leadership has made the decision to close its investigation into Crypto.com with no enforcement action or settlement,” said Nick Lundgren, Chief Legal Officer of Crypto.com. “Under the previous administration, the SEC weaponized and attempted to expand its congressionally granted power in order to harm an industry that its former chair disfavored.
Other Highlights Worth Mentioning
Coinbase Users Lose Over $46M in Suspected Thefts This Month - Coinstats
Tether Mints $1 Billion in USDT Tokens to Meet Future Demand - Blockchainreporter
Iranian Officials Embezzle $21 Million in Crypto During Corruption Investigation - Coincentral
Australia Puts Crypto ATM Providers 'On Notice' Over Money Laundering Concerns - Decrypt