FTX Token(FTT)

Bankrupt crypto lender BlockFi is reportedly trying to block attempts by FTX and Three Arrows Capital (also bankrupt) to retrieve millions of dollars to pay back their creditors. BlockFi has claimed that, by its estimates, legal battles with FTX and Three Arrows Capital could cost its customers up to $1 billion. BlockFi Looks To Stop FTX And 3AC Repayment BlockFi claimed in a 21st August filing at the New Jersey bankruptcy court that its own creditors must not be pushed to the back of the line because FTX’s creditors were harmed thanks to the exchange allegedly misappropriating the $5 billion that BlockFi had initially lent it. In an attempt to safeguard the interest of its creditors, BlockFi has stated it will actively look to block attempts by FTX and Three Arrows Capital to claw back billions to pay off their own creditors. The crypto lender argued that its bankruptcy directly resulted from the fraud perpetrated by FTX and 3AC. BlockFi stated in its filing, “FTX seeks to recover on over $5 billion of claims filed against the BlockFi estates at the direct expense of the ultimate victims of FTX’s fraud: BlockFi’s clients and other legitimate creditors. To prevent further injustice to the creditors of BlockFi’s estates, the Court should disallow the FTX Claims under the doctrine of unclean hands.” FTX had also given $400 million to BlockFi in June 2022 in an attempt to remedy the situation. This was in addition to purchasing BlockFi equity pursuant to a loan agreement, the filing added. However, BlockFi has stated that this was not a standard loan agreement. Instead, the crypto lender has stated that it was an unsecured, 5-year term which was also well below market rates. It further added that repayments were not due until the firm would supposedly mature. BlockFi called FTX’s investment a gamble, one that BlockFi’s creditors should not be held liable for. BlockFi stated in its argument, “Just because FTX’s fraudulent actions caused FTX’s bet to fail does not mean BlockFi’s creditors are now somehow liable to refund the purchase price.” BlockFi Owes Billions To Creditors Several estimates have shown that BlockFi reportedly owes up to $10 billion to over 100,000 creditors. This figure includes $1 billion to three of its largest creditors and $220 million to bankrupt crypto hedge fund Three Arrows Capital. Three Arrows Capital’s creditors have reportedly expressed considerable frustration with the slow pace of bankruptcy proceedings. BlockFi has argued that Three Arrows Capital, like FTX, was not entitled to repayment and claimed that the crypto hedge fund used fraudulent means to borrow the funds. Three Arrows Capital had previously taken loans from BlockFi, on which it subsequently defaulted. This led to the foreclosure on the collateral, leading to what liquidators have described as a $220 million preferential payment to BlockFi. BlockFi’s creditors have also accused the company of ignoring several warnings and red flags when dealing with FTX and its sister concern Alameda Research, just months prior to the FTX collapse. The creditors claimed that the CEO of BlockFi ignored advice from BlockFi’s risk management team, which had stated that Alameda Research’s balance sheet primarily consisted of FTX’s own FTT token. However, the CEO dismissed such concerns and urged the risk management team to get comfortable with Alameda Research being a borrower similar to Three Arrows Capital. “As early as August 2021, BlockFi’s risk management team was advised that Alameda’s balance sheet was largely comprised of ‘~7bb unlocked FTT and 11bb total including locked tokens based on unaudited financials. This set off alarms at BlockFi. Mr. Prince dismissed the concerns, urging the risk team to learn to ‘get comfortable [with Alameda] being a three arrows size borrower, just with FTT and other collateral types instead of GBTC shares.” However, BlockFi’s creditors settled with the company last month on moving ahead with a repayment plan. BlockFi collapsed just weeks after FTX, filing for Chapter 11 bankruptcy on the 28th of November. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Bankrupt crypto lender BlockFi is reportedly trying to block attempts by FTX and Three Arrows Capital (also bankrupt) to retrieve millions of dollars to pay back their creditors. BlockFi has claimed that, by its estimates, legal battles with FTX and Three Arrows Capital could cost its customers up to $1 billion. BlockFi Looks To Stop FTX And 3AC Repayment BlockFi claimed in a 21st August filing at the New Jersey bankruptcy court that its own creditors must not be pushed to the back of the line because FTX’s creditors were harmed thanks to the exchange allegedly misappropriating the $5 billion that BlockFi had initially lent it. In an attempt to safeguard the interest of its creditors, BlockFi has stated it will actively look to block attempts by FTX and Three Arrows Capital to claw back billions to pay off their own creditors. The crypto lender argued that its bankruptcy directly resulted from the fraud perpetrated by FTX and 3AC. BlockFi stated in its filing, “FTX seeks to recover on over $5 billion of claims filed against the BlockFi estates at the direct expense of the ultimate victims of FTX’s fraud: BlockFi’s clients and other legitimate creditors. To prevent further injustice to the creditors of BlockFi’s estates, the Court should disallow the FTX Claims under the doctrine of unclean hands.” FTX had also given $400 million to BlockFi in June 2022 in an attempt to remedy the situation. This was in addition to purchasing BlockFi equity pursuant to a loan agreement, the filing added. However, BlockFi has stated that this was not a standard loan agreement. Instead, the crypto lender has stated that it was an unsecured, 5-year term which was also well below market rates. It further added that repayments were not due until the firm would supposedly mature. BlockFi called FTX’s investment a gamble, one that BlockFi’s creditors should not be held liable for. BlockFi stated in its argument, “Just because FTX’s fraudulent actions caused FTX’s bet to fail does not mean BlockFi’s creditors are now somehow liable to refund the purchase price.” BlockFi Owes Billions To Creditors Several estimates have shown that BlockFi reportedly owes up to $10 billion to over 100,000 creditors. This figure includes $1 billion to three of its largest creditors and $220 million to bankrupt crypto hedge fund Three Arrows Capital. Three Arrows Capital’s creditors have reportedly expressed considerable frustration with the slow pace of bankruptcy proceedings. BlockFi has argued that Three Arrows Capital, like FTX, was not entitled to repayment and claimed that the crypto hedge fund used fraudulent means to borrow the funds. Three Arrows Capital had previously taken loans from BlockFi, on which it subsequently defaulted. This led to the foreclosure on the collateral, leading to what liquidators have described as a $220 million preferential payment to BlockFi. BlockFi’s creditors have also accused the company of ignoring several warnings and red flags when dealing with FTX and its sister concern Alameda Research, just months prior to the FTX collapse. The creditors claimed that the CEO of BlockFi ignored advice from BlockFi’s risk management team, which had stated that Alameda Research’s balance sheet primarily consisted of FTX’s own FTT token. However, the CEO dismissed such concerns and urged the risk management team to get comfortable with Alameda Research being a borrower similar to Three Arrows Capital. “As early as August 2021, BlockFi’s risk management team was advised that Alameda’s balance sheet was largely comprised of ‘~7bb unlocked FTT and 11bb total including locked tokens based on unaudited financials. This set off alarms at BlockFi. Mr. Prince dismissed the concerns, urging the risk team to learn to ‘get comfortable [with Alameda] being a three arrows size borrower, just with FTT and other collateral types instead of GBTC shares.” However, BlockFi’s creditors settled with the company last month on moving ahead with a repayment plan. BlockFi collapsed just weeks after FTX, filing for Chapter 11 bankruptcy on the 28th of November. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Defunct crypto exchange FTX announced its plans for rebooting the platform and paying back its creditors; the FTT token reacted by a sudden 15% surge in price. The Restart of the FTX Offshore Exchange Will Depend on its Creditors On July 31, 2023, the bankrupt crypto exchange FTX Trading Ltd. filed a Draft Plan of Reorganization and a Term Sheet, confirming the rumors about a possible relaunch of the platform. According to the plan, FTX divided its claimants into different categories: FTX.com offshore exchange customers, referred to as “dotcom customers”; the U.S. exchange customers; customers of the non-fungible token (NFT) exchange; general unsecured claims; secured claims; and subordinated claims. The international “dotcom” users have the option to pool their assets and create a “rebooted” offshore FTX exchange, not available in the US. In this case, these customers are entitled to get a stake in the new platform instead of receiving a cash payout: “Rather than all cash, the Debtors may determine that the Offshore Exchange Company remit non-cash consideration to the Dotcom Customer Pool in the form of equity securities, tokens or other interests in the Offshore Exchange Company, or rights to invest in such equity securities, tokens or other interests.” The proposal stated that FTX administrators will use “the waterfall approach” to determine the priority of claims. This means that each class will receive a pro-rata payout from the pool of remaining assets after the payout to the preceding class is finished. What about FTT and its Holders? In response to the news, the FTX token jumped by about 15% reaching the mark of $1.55, even though it pulled back to $1.4 shortly after. However, the plan clarified that the FTT holders won’t receive any compensation for their losses as their claims are to be canceled and extinguished: “Claims by holders of FTT (whether or not held on any FTX exchange), preferred stock and equity investors in the Debtors and related claims. All these claims and interests will be canceled and extinguished as of the Effective Date and holders will not receive any distribution.” Moreover, there are rumors that the FTX token will be eliminated altogether, and the claimants will receive their payout in USD as of the date of bankruptcy. It’s also worth mentioning that FTT was previously labeled an unregistered security by the US Securities and Exchange Commission (SEC). The FTX Drama Continues The defunct exchange still struggles to deal with other consequences of its sudden fall in November, 2022. Earlier today, it has been announced that FTX almost reached a resolution in its dispute with another bankrupt crypto company Genesis. Meanwhile, ex-CEO of FTX Sam Bankman-Fried is still facing seven charges related to wire fraud, securities fraud, and money laundering, partly for misappropriating the FTX customer funds. As of recent developments, Bankman-Fried agreed to a gag order while waiting for an update on his bail status. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The re-booted exchange would only cater to the offshore customers and not US investors.

As cryptocurrency gains more mainstream adoption, there’s increasing need for more accessibility and real-world applications. However, while FTX looks to relaunch its crypto exchange, many investors seem more focused on a new AI crypto known as Avorak AI. What happened to FTX? FTX faced a series of unfortunate events that led to its eventual liquidation […]

Court documents have revealed that Zac Prince, CEO of bankrupt crypto lending firm BlockFi, ignored warnings from the company’s risk management team regarding exposure to FTX and Alameda Research. By the time it filed for bankruptcy, BlockFi had around $1.2 billion in assets tied to FTX and Alameda. Warnings Ignored The document revealing the details was filed on behalf of former customers of BlockFi. According to the document, Prince disregarded and blatantly ignored several warnings from the company’s risk management team over lending to FTX’s sister entity, Alameda Research. However, Price allegedly dismissed all concerns from the team, with BlockFi lending Alameda Research around $217 million by August 2021. The risk management team had also flagged several risks associated with the FTT token used to secure the loans if they required liquidation. However, these warnings were also ignored. The filing stated that the risk management team flagged concerns as early as 2021. “As early as August 2021, BlockFi’s risk management team was advised that Alameda’s balance sheet was largely comprised of ‘~7bb unlocked FTT and 11bb total including locked tokens based on unaudited financials. This set off alarms at BlockFi. Mr. Prince dismissed the concerns, urging the risk team to learn to ‘get comfortable [with Alameda] being a three arrows size borrower, just with FTT and other collateral types instead of GBTC shares.” In January 2022, the risk management team stopped issuing warnings to Prince about loaning to Alameda Research. Instead, discussions moved to Slack, where the CEO occasionally acknowledged BlockFi’s exposure to FTX and Alameda. BlockFi had around $1.2 billion in assets tied to Alameda and FTX when it filed for bankruptcy. Subsequently, BlockFi halted withdrawals on the 10th of November, 2022, citing the collapse of FTX and Alameda Research. Bad Business Practices When BlockFi filed for bankruptcy, it stated that it had significant exposure to FTX and its associated entities. Furthermore, FTX US received a $400 million credit line from BlockFi, further deepening their association. “BlockFi recalled its loans from Alameda [in June 2022], and Alameda repaid its outstanding balance to almost zero. BlockFi then could have walked away from the relationship. Instead, it re-lent Alameda nearly $900 million (between July and September 2022), almost exclusively collateralized by FTT.” The filing further stated that while the FTX collapse triggered BlockFi’s downfall, poor decision-making and bad business practices were the ultimate reason behind BlockFi’s bankruptcy. “It may be true that Alameda/FTX’s downfall triggered BlockFi’s downfall, but BlockFi’s demise was rooted in business practices and decisions well preceding Alameda/FTX’s bankruptcy filing.” The filing described BlockFi’s functioning as a “flawed business model” and that the company took an unnecessary and unreasonable risk, leading to cataclysmic losses. It also added that BlockFi was not a regulated lending institution and challenged claims that BlockFi debtors are in a better position compared to FTX debtors. BlockFi Disagrees A representative from BlockFi responded to the filing, stating the company disagrees with the report, adding that the report cherry-picked statements and does not deliver an objective analysis. BlockFi blamed direct exposure to FTX as the reason for its bankruptcy. “Ultimately, BlockFi failed because FTX and Alameda were and are fraudulent enterprises, and the Special Committee [of independent directors] has not uncovered any evidence that the Released Parties knew, should have known, or reasonably could have known, about FTX’s and Alameda’s true nature.” Meanwhile, FTX and other companies have opposed BlockFi’s bankruptcy plans in court filings, leading to delays in the execution of those plans. BlockFi currently owes between $1 billion to $10 billion to creditors. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Bitcoin cash added the most, almost tripling over the course of the month.

FTT jumped to a two-month high shortly after Ray shared details on the FTX reorganization strategy.

According to CZ, Binance has not sold BTC or BNB and even still holds its FTT position.

FTX's new management, led by CEO John J. Ray III, is considering a rebirth of Sam Bankman-Fried's defunct crypto exchange, according to the latest legal billings.

Geneva, Switzerland, May 16th, 2023, ChainwireThe TRON DAO team, community representatives of the TRON blockchain platform, revealed the results for the fourth season of their popular HackaTRON competition. 500,000 USDD, a TRON-based decentralized, overcollateralized, multi-chain stablecoin, will be shared among the top projects. Judge-selected qualifiers will also be given application accessibility to TRON DAO Ventures and Huobi Ventures for potential capital funding.There were over 625 participants from 172 projects across six tracks, including DeFi, Web3, NFT, and GameFi, alongside the new Builder and Eco-Friendly categories.“Our thriving community's incredible talent and innovation were on full display for this season’s HackaTRON,” said Ejaz Merchant, Developer Lead with TRON DAO. “I want to express my gratitude to all the outstanding projects who submitted, all the partners, and the committed community members who made this event a success. Together, we are expanding blockchain technology's potential and promoting a cooperative, self-maintained ecosystem.”Judge-Selected Top FivesFirst place in each of the judge-selected categories receives 20,000 USDD, with second place entries receiving 15,000 USDD, third place 10,000 USDD, and fourth and fifth places 8,000 and 6,000 USDD, respectively.The new Builder category recognized teams returning to the hackathon that have made significant updates to their projects. First place this season went to the “Farming-as-a-Service” project by Elk Finance. This update to Elk Finance’s customer offerings will “allow everyone to harness the most advanced farming contracts in DeFi.” The projects that placed second through fifth in the Builder track were:Galaxy Throne by Galaxy ThroneJustMoney Spot by JustMoneyTronNRG by TronNinjasTronQL by TronQLIn the Eco-Friendly track, which showcased projects working towards sustainability and environmental stewardship via the TRON Climate Initiative, first place went to Ecomarket, an open marketplace for procuring used and recycled plastics. EcoMarket wants to build a platform that incentivizes recycling and clean storage of used plastics, while providing companies with reliable and transparent sources of recycled materials. The projects that placed second through fifth in the Eco-Friendly category were:MusiCoinCity by ElfWebCarboEx by CarboExForGreen by ForGreenBlockForest by BlockForestThe DeFi category was topped by Ergon. This project’s goal is to simplify user access to TRON Stake 2.0, providing savings on transaction fees by renting energy while earning by staking TRX. The projects that placed second through fifth in the DeFi track were:Cloak by CloakMyFend by Fend GroupSorrel Banq by Paracosm LabsSwirl Ads by Team SudoIn the NFT track, judges selected BobbyBot.Trade for first place. This decentralized application will allow users and players to trade their virtual assets (NFTs) on Steam-based games, such as Team Fortress and Counter Strike, for TRX, USDT, and USDD on TRON. The projects that placed second through fifth in the NFT category were:Evoie by EvoieSamhita DAO by HeritageSpeakSealKey by TRONNuggetzWine Vault by Wine VaultThe GameFi category was led by Duelers from TRONJoy. Players can choose “duel” or “tournament” mode to engage, create, and conquer the TRON community in the ultimate GameFi showdown! The remaining top five included:RevoluTRON by Irruption LabtheRevolt by Spirit-TowerCukies: Rush & Run by Cukies WorldMETASENS by METASENSIn the Web3 track, first place went to TrustSight by The TRONacles. Their project’s goal is to increase decentralized trust on the TRON blockchain via user reviews. It is essentially a crowdsourced reputation platform for on-chain actors, enabling TRON users to navigate the ecosystem securely and confidently. The projects that placed second through fifth in the Web3 category were:Daren Market by Daren MarketTronSave by TRONSAVEProvyLens by LensCraftersYinbox by Jeffrey LewisThe judge-selected qualifiers received 30% of their allocated prize for placing in the top five of their respective category on May 15, 2023. They have until June 1, 2023 to deliver a functional, decentralized application onto either the TRON or BitTorrent Chain MainNets in order to receive the remainder of their prize.Feroz Lakhani, Enterprise Lead with TRON DAO, commented, “This season has been the best yet! I'm really looking forward to connecting more deeply with some of the projects focused on environmental sustainability, as it aligns with our focus on being as eco-friendly as possible. For fun, I also love ‘quality testing’ all of the GameFi projects. That's what my next few weekends will be dedicated to, and I can't wait!”Community Forum Top FivesThe HackaTRON Community Forum voted to select “community” winners, as well. Here are the top five from each category:Web3CryptoDo by CryptoDoProvyLens by LensCraftersZkTickets by ZKP Tech SolutionsBlockMenu by BlockMenuYinbox by Jeffrey LewisDeFiErgon by USTXSwirl Ads by Team SudoSorrel Banq by Paracosm LabsUpDawg by uDawgDAOCloak by CloakGameFiCukies: Rush & Run by Cukies WorldDuelers by TronjoyRevoluTRON by Irruption LabWorlds Hardest Maze by WHMtheRevolt by Spirit-TowerNFTTNS Domains by SolidityGodsTNFT Maker by CubieWine Vault by Wine VaultTronGallery by TronGalleryEnergyNFTs by TRONArmyBuilderJustMoney Spot by JustMoneyTuruVerse by TuruGlobalTronNRG by TronNinjasDeba's Wulf Pack by The PackCukies World Metaverse by Cukies WorldEco-FriendlyTronPower by Lomotey JosephineAurorAqua by AuroraMusiCoinCity by ElfWebCarboEx by CarboExEcoDAO by EcoDAOThis season, there were also three bonus prizes for the best performances in project engagement, determination, and community contribution. The project engagement and determination prizes will be announced on June 1, 2023. The community contribution prize recipients included Akainuu, antonio, fabsltsa, Gordian, HODL, manfred_jr, Nana66419, nweke-nature1, Prince-Onscolo, and Youngyuppie. Each selected community contributor will receive 500 USDD.The TRON DAO team is thrilled with the quality of projects from Season 4 of the HackaTRON. Hackathons are just one of the ways developers are welcomed to #BUIDLtheFUTURE with TRON. Learn more about all that’s happening across the TRON ecosystem at TRONDAO.org.About TRON DAOTRON DAO is a community-governed DAO dedicated to accelerating the decentralization of the internet via blockchain technology and dApps.Founded in September 2017 by H.E. Justin Sun, the TRON network has continued to deliver impressive achievements since MainNet launch in May 2018. July 2018 also marked the ecosystem integration of BitTorrent, a pioneer in decentralized Web3 services boasting over 100 million monthly active users. The TRON network has gained incredible traction in recent years. As of May 2023, it has over 160.0 million total user accounts on the blockchain, more than 5.58 billion total transactions, and over $12.2 billion in total value locked (TVL), as reported on TRONSCAN.In addition, TRON hosts the largest circulating supply of USD Tether (USDT) stablecoin across the globe, overtaking USDT on Ethereum since April 2021. The TRON network completed full decentralization in December 2021 and is now a community-governed DAO. Most recently in October 2022, TRON was designated as the national blockchain for the Commonwealth of Dominica, which marks the first time a major public blockchain partnered with a sovereign nation to develop its national blockchain infrastructure. On top of the government’s endorsement to issue Dominica Coin (“DMC”), a blockchain-based fan token to help promote Dominica’s global fanfare, seven existing TRON-based tokens - TRX, BTT, NFT, JST, USDD, USDT, TUSD, have been granted statutory status as authorized digital currency and medium of exchange in the country.TRONNetwork | TRONDAO | Twitter | YouTube | Telegram | Discord | Reddit | GitHub | Medium | ForumContactHayward [email protected]

The Binance executive clarified that SBF's degenerative remarks were not behind the CZ’s decision to liquidate Binance's FTT holdings.

Pop sensation Taylor Swift pulled out of a $100 million deal with FTX, thus saving herself from a class-action lawsuit. Taylor Asked The Right Questions Taylor Swift did not fall for FTX because she asked one simple question. The pop star was on the verge of signing a million-dollar contract with the now-bankrupt crypto firm, which could have landed her in serious trouble today. Like many other celebrities, FTX had tried to rope in Taylor to promote the brand in a series of high-profile endorsements. However, she did not proceed with the deal because the company could not satisfy her query about FTX offering unregistered securities. Prosecutor Adam Moskowitz is leading the class-action lawsuit against celebrities who promoted the firm and recently spoke about Taylor Swift in a podcast. Moskowitz recently appeared on “The Scoop” podcast and claimed that, unlike the other celebrities who were signed on by the firm, Taylor has been asking questions about FTX’s offerings. According to Moscowitz, Taylor asked the question - “Can you tell me that these are not unregistered securities?” before pulling out of the deal. Celebrities In FTX Hot Water The plaintiffs behind the lawsuit are seeking damages over $5 billion from the celebrity endorsers like Tom Brady, Gisele Bundchen, Larry David, Shaquille O’Neal, Steph Curry, and a bunch of popular finance YouTubers. Moskowitz claimed that none of these celebrities did their due diligence to check if the company was breaking the law. Therefore the lawsuit is accusing them of promoting unregistered security and seeking recompense for customers who lost money in the FTX debacle. The lawsuit claims, "In order to induce confidence and to drive consumers to invest in what was ultimately a Ponzi scheme, [the defendants] made numerous misrepresentations and omissions." The FTX Drama Last November, news broke that the FTX crypto exchange was commingling funds with its sister concern, Alameda Research. This led to a surge of customers withdrawing their funds and investors pulling out of FTX. Unfortunately, owing partly to CEO Sam Bankman-Fried’s lavish spending and a $65 billion line of credit, the company did not have the liquidity pool to fund the mass withdrawals, resulting in the ultimate bankruptcy announcement. Are Cryptocurrencies Unregistered Securities? The company has also been charged by the SEC for dealing in what it calls “unregistered securities.” Any tradeable asset that holds value is called a security and needs to be registered with the SEC in order to be offered and sold in the U.S. E.g., Stocks or bonds are examples of securities companies must register with the regulatory body before offering their sale. Even though the argument of “is crypto a security?” an ongoing one, the SEC has filed a complaint against FTX that its native cryptocurrency, FTT, is classified as a security since it was sold as an investment contract. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

FTT jumped as much as 36%.