Tag: ftx bankruptcy

FTX debtors report over $4 billion in scheduled assets

FTX, the cryptocurrency exchange founded by Sam Bankman-Fried, filed for Chapter 11 bankruptcy protection in November 2022 following allegations of fraudulent activities. In a recent filing with the United States Bankruptcy Court for the District of Delaware, FTX debtors reported more than $4 billion in scheduled assets across various company silos as of November 2022.

The report submitted to the committee of unsecured creditors detailed the scheduled assets and claims of the company. The West Realm Shires silo, which includes FTX US and Ledger X, FTX.com, Alameda Research, and FTX Ventures, had roughly $4.8 billion in scheduled assets and $11.6 billion in scheduled claims.

According to the filing, Alameda Research held the majority of scheduled assets at approximately $2.6 billion. However, the report noted that the company had “potentially material claims that have been filed as undetermined,” suggesting that the actual value of Alameda’s assets could be even higher.

FTX.com had over $11.2 billion in scheduled claims, but claims from FTX Ventures were undetermined. The report also revealed that the data surrounding cryptocurrency holdings or transactions was limited. While the debtors reported more than 53 million FTX Tokens collateralized loans, including Bitcoin, Ether, XRP, and USD Coin, they stated that “additional tracing of wallet and blockchain activity remains an ongoing matter.”

The debtors’ report also noted that an investigation into crypto transactions as part of payments to FTX company insiders was ongoing. The former CEO of FTX, Sam Bankman-Fried, received more than $2.2 billion of the payments, according to the report.

In addition to the bankruptcy case, Bankman-Fried is facing both criminal and civil cases for his alleged involvement in fraudulent activities at the company.

The news of FTX’s bankruptcy and subsequent investigations have raised concerns about the transparency and security of the cryptocurrency industry. However, the company’s scheduled assets of over $4 billion suggest that FTX was a significant player in the crypto market, and the ongoing investigations will shed more light on the company’s operations and dealings.

Wintermute Accuses Near Foundation and Aurora Labs of Failing to Honor USN Redemptions

Wintermute, in an unexpected public disclosure, has raised a serious allegation against the Near Foundation (NF) and Aurora Labs regarding the redemption process of the USN stablecoin. In a series of tweets, Wintermute’s CEO, Evgeny Gaevoy, criticized the entities for not honoring their public and private commitments to redeem USN tokens for USDT, leading to substantial financial repercussions for Wintermute and possibly setting a detrimental industry precedent.

USN’s Troubled Journey

Initially launched as an algorithmic stablecoin similar to Terra’s UST, USN underwent a transformation to a non-algorithmic model backed by USDT amid the market’s instability. Despite the changes and a subsequent collateral deficit, NF announced the USN Protection Programme, assigning Aurora Labs to oversee its operation. However, the program has since been marred by a failure in implementing redemption promises.

The Unresolved Transaction

Wintermute, in its role in asset liquidation for the FTX bankruptcy estate, sold 11.2 million USN, expecting to redeem the tokens for over $11M for FTX creditors. This expectation was based on NF’s assurances and Aurora’s private confirmations. The subsequent refusal to redeem these tokens has left Wintermute in a state of limbo, with negotiations leading to a disappointing offer from NF amounting to only a fraction of the original value.

The Path Forward

Highlighting the lack of accountability and clarity from NF and Aurora, Wintermute is preparing to take legal steps. Gaevoy’s disclosure is not only a call for resolution but also a signal to the industry about the importance of corporate responsibility and transparency. The company is reaching out to others similarly impacted and is firm on its stance to switch to an adversarial mode if their calls for redemption continue to be ignored.

The unfolding scenario raises questions about trust and integrity in the crypto market, as prominent entities like NF and Aurora Labs face scrutiny. Wintermute’s commitment to transparency and the industry’s ethical standards is evident as they navigate through this challenging episode.

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