2022 was generally a rough year for digital asset markets. In May, the Terra stablecoin depegged, causing the Terraform Labs ecosystem to disintegrate (and Do Kwon is still on the run as of 12/28/2022). This caused a domino effect leading to the bankruptcy of some large organizations and left others scrambling for bailouts. For a … [Read more…]
U.S. District Judge Ronnie Abrams recused herself from the Sam Bankman-Fried fraud case due to a potential conflict of interest. Her husband is a partner at a law firm named Davis Polk and Waddell, which advised FTX in 2021. The law firm also represented parties who may have a dispute with Sam Bankman-Fried and his … [Read more…]
During a recent creditors’ meeting, FTX management revealed that it is working on consolidating about $1.2 billion in cash into accounts at financial institutions approved by the United States Department of Justice. It already has almost $500 million in U.S. banks and found another $720 million that it will work on consolidating. $130 million in … [Read more…]
The presiding judge in the FTX bankruptcy case, John Dorsey, approved FTX’s request to redact its creditors. A legal team representing FTX’s unsecured creditors supported FTX’s request, citing privacy reasons. The legal team for the unsecured creditors said that exposing their identities could discourage investors from participating in the bankruptcy process and harm their ability … [Read more…]