FTX creditors are still waiting to receive full payment of their funds following the platform’s collapse in November 2022. As a key decision on the company’s restructuring approaches, payments are expected to generate volatility in the Cryptocurrency market.
According to Sunil Kavuri, creditor activist at FTX, clients could recover between 10% and 25% of their cryptocurrencies. This update comes as the platform transfers 18% of the confiscated funds, equivalent to $230 million, to shareholders. Which has generated concern among FTX creditors.
FTX is transferring 18% of DOJ forfeiture funds up to $230m to FTX equity holders (Plan supplement)
FTX crypto holders are getting 10% to 25% of their crypto back pic.twitter.com/3f6BePpoNU
— Sunil (FTX Creditor Champion) (@sunil_trades) September 28, 2024
Additionally, there are rumors that FTX will begin distributing up to $16 billion starting in October. Although this information has not yet been confirmed.
The next court hearing to decide the restructuring plan is scheduled for October 7. And, it is expected to determine how and when payments will be made to those affected.
Crypto whale loses more than $32 million after falling for scam
A crypto whale has lost more than $32 million in tokens after signing a malicious transaction, Blockchain security service ScamSniffer reported in a post on estimated value of $32.4 million at current price.
The malicious transaction was orchestrated by the “Inferno Drainer” scam-as-a-service, according to blockchain intelligence firm Arkham. This service deceives users with fake versions of DeFi applications, thus managing to steal more than 215 million dollars from more than 200,000 victims. According to data from a Dune Analytics dashboard created by ScamSniffer.
“Inferno Drainer” charges a 20% commission for stolen tokens. Although the service had been closed in November 2023, it reappeared in May of this year with “new staff” and “new functions.” Currently, the service claims to support 28 blockchains and hundreds of DeFi applications.
Senator Cynthia Lummis: A Republican Senate would benefit digital assets
A change in control of the US Senate, from Democrat to Republican, would be positive for digital assets, according to Republican Senator Cynthia Lummis in an interview with CNBC. Lummis noted that the Senate Banking Committee, currently led by Democrat Sherrod Brown, has maintained a critical stance toward cryptocurrencies, pointing out the lack of “common sense protections” such as Know Your Customer (KYC) rules. .
If Republicans win control of the Senate, Sen. Tim Scott, R-South Carolina, would likely take over as committee chairman. Scott is a cryptocurrency advocate and has proposed the creation of a subcommittee focused on digital assets. According to Lummis, “the best thing for digital assets is for the Senate to be Republican.” Since Scott would promote a more favorable legal framework compared to Brown.
According to a forecast model by The Hill, Republicans have a 67% chance of winning control of the Senate, while the House of Representatives remains in dispute. Legislators from both parties continue to work on bills to regulate cryptocurrencies. Including a regulation of stable currencies and another focused on market structure.
Canada extends deadline for crypto platforms to comply with regulations on stablecoins
The Canadian Securities Administrators (CSA) has announced a new extension of the deadline for cryptocurrency trading platforms to comply with stablecoin regulations.
This is the second extension of the regulations, which were initially introduced in February 2023 and prohibit the use of algorithmic stablecoins. Allowing only those backed by a single fiat currency (FBCAs).
Originally, the deadline to comply with the regulations was April 30, 2024, but following technical issues reported by the platforms, it was extended to October 31. Now, the new deadline has been set for December 31, 2024.
The CSA indicated that it is open to exploring other solutions that address its investor protection concerns. “The extension is intended to provide more time for CTPs (cryptocurrency trading platforms) to comply or propose alternatives,” the CSA stated.
As a result of the new regulations, several foreign platforms such as OKX, dYdX, Paxos, Bybit and Binance closed their operations in Canada between March and May 2023. However, others such as Kraken have decided to stay, with its CEO, Mark Greenberg, praising regulators for their “collaboration and regulatory clarity.” Additionally, Gemini submitted its pre-registration commitment in April 2023, the first step to becoming a restricted merchant in the country.
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