Just days after FTX announced that it had successfully recovered approximately $7 billion in assets, cryptocurrency lender BlockFi announced this week that it was emerging from bankruptcy. FTX Debtors, including FTX and its affiliates, are estimated to have misappropriated $8.7 billion from customers. BlockFi has lent more than $650 million to FTX, making it one of the exchange’s largest creditors, meaning its customers’ repayment success is closely tied to FTX’s ability to recover assets.
FTX’s new management is also carefully considering its options for the future, including selling the entire exchange (which includes an extensive customer base of over 9 million) or partnering with another entity to revive the exchange. The possibility of an independent comeback is also on the table.
BlockFi, on the other hand, had no choice but to cease operations, according to court documents.
This week’s Crypto Biz looks at BlockFi’s emergence from bankruptcy, the development of BlackRock’s spot Bitcoin exchange-traded fund (ETF), and changes to Worldcoin’s payments scheme.
There is finally light at the end of the tunnel for creditors of some bankrupt companies in the 2022 cryptocurrency bear market. About a year after filing for bankruptcy, companies like FTX and BlockFi have begun giving back customers’ funds.
BlackRock’s Spot Bitcoin ETF Now Listed on Nasdaq Clearing Company – Bloomberg Analyst
The iShares spot Bitcoin ETF proposed by investment firm BlackRock has been listed on the Depository Trust and Clearing Corporation (DTCC), which means that the U.S. Securities and Exchange Commission may approve the ETF. Bloomberg ETF analyst Eric Balchunas said in an October 23 (formerly Twitter) post that the DTCC listing is “part of the overall process” of bringing crypto ETFs to the market. “This is the first spot ETF to be listed on the DTCC, and there is currently no other exchange listing,” Balchunas said. Balchunas speculated that BlackRock may have received SEC approval for the ETF listing or is “assuming everything is ready.” . Based on the date of BlackRock’s filing, the SEC must make a final decision on approving or rejecting the ETF by January 10, 2024.
The iShares Bitcoin Trust is listed on the DTCC (Depository Trust & Clearing Corporation, which clears Nasdaq transactions).The stock price will be $IBTC. part of the overall process of bringing ETFs to market again.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0
— Eric Balchunas (@EricBalchunas) October 23, 2023
BlockFi emerges from bankruptcy and opens wallet withdrawals
Cryptocurrency lending platform BlockFi has emerged from bankruptcy and is ready to repay some creditors, according to an October 24 blog post. “Withdrawals are currently available to nearly all Wallet customers,” the post said, adding that BlockFi interest account loan customers will be able to withdraw some of their assets in early 2024. BlockFi’s emergence from bankruptcy means it can now try to recover assets from other companies it believes owe it money. This includes bankrupt crypto platforms such as Three Arrows Capital and FTX. The total amount of funds allocated will depend on factors such as BlockFi’s success in FTX’s bankruptcy proceedings.
Ledger hardware wallet launches cloud-based private key recovery tool
Despite facing harsh criticism from the crypto community, hardware wallet company Ledger is rolling out its cloud-based private key recovery solution. The solution, provided by blockchain protection platform Coincover, is a paid subscription service that allows users to back up their secret recovery phrases. The launch comes months after Ledger paused resumption of services in May 2023 due to community backlash. Ledger CEO Pascal Gauthier later said the company would launch the product only after the open source code is released. The code for Ledger Recover is now available on GitHub.
Worldcoin will stop paying USDC fees to Orb operators as early as November
Worldcoin will start paying its Orb operators (those who are rewarded for scanning people’s eyes) with its native Worldcoin (WLD) token, phasing out USD Coin (USDC) as early as next month. This change will affect most jurisdictions. Worldcoin said the move to pay Orb operators entirely in WLD is part of a “transitional phase” after the project officially launches on July 24. Data from Worldcoin’s official Dune Analytics dashboard shows that the supply of WLD tokens has grown from approximately 100 to 100 tokens. As of this week, that number has grown to about 134 million, up from 1 million at the time of publication.
Crypto Biz is your weekly pulse on blockchain and the business behind cryptocurrency, delivered straight to your inbox every Thursday.
Svlook
