Bankrupt crypto exchange FTX is trying to retrieve hundreds of millions of dollars fraudulently transferred from scores bank accounts of its users, FTX’s creditors were informed on Tuesday.
From former FTX CEO Bankman-Fried’s extradition to Greenidge’s debt restructuring deal, here are some latest developments in the crypto world
Bankrupt crypto exchange FTX is trying to retrieve hundreds of millions of dollars fraudulently transferred from scores bank accounts of its users, FTX’s creditors were informed on Tuesday.
A new management had taken over the reins of FTX after its then CEO Sam Bankman-Fried resigned from his post on November 11.
Meanwhile, it was reported on Tuesday, that FTX executives testified in a hearing that the company had assets worth more than $1 billion.
The company said it could trace its $720 million previously deposited in various US banks. Another over $500 million is also held in US financial institutions.
“We are reaching out to banks and changing the signatories on the accounts so that we can get access to the accounts and move the cash as much as we can to authorised depository institutions,” said Mary Cilia, the new FTX CFO, in a bankruptcy proceeding.
Sam Bankman-Fried Signs Extradition Papers
Meanwhile, ABC News reported that jailed former FTX CEO, who faces up to 115 years in prison in the US, has signed the extradition papers in Bahamas and he could be turned over to the Federal Bureau of Investigation (FBI) soon.
The report quoted Doan Cleare, the interim commissioner of prisons in Bahamas, as saying that Bankman-Fried signed the extradition papers on December 20.
The US Department of Justice is pressing charges against Bankman-Fried for wire fraud, conspiracy to commit fraud, money laundering, and various other charges.
Greenidge Signs Debt Restructuring Deal
Bitcoin miner Greenidge and its creditor, fintech company NYDIG, have agreed to restructure debt totalling over $74 million, according to a filing with the US Securities and Exchange Commission (SEC) on December 20. The agreement would substantially alter Greenidge's present business model by moving it away from self-mining toward hosting NYDIG's mining rigs.
Within three months of debt restructuring and hosting arrangements, NYDIG would enable the rights to a mining site by purchasing miners with a capacity of roughly 2.8 exahashes per second (EH/s) to be hosted by Greenidge. The company would agree to a debt reduction of $57 million to $68 million for Greenidge in exchange for the miner purchases, the transfer of mining infrastructure and credits to NYDIG, and other considerations.
To secure the remaining amount of the NYDIG loan, Greenidge would also pledge a sizeable chunk of its unencumbered assets as security. The company would continue to be the owner of miners with a 1.2 EH/s capacity. Greenidge had over 24,500 miners, with a 2.5 EH/s mining capacity as of October 31, 2022.