Bankruptcy News

FTX’s bankruptcy estate is uncertain whether it is legally entitled to distribute payouts to creditors in countries such as China amid local crypto restrictions.

FTX lawyers argued that creditors should not serve as a “backstop” for Three Arrows Capital’s risky leveraged strategy.

Alex Mashinsky and related entities have forfeited all claims to Celsius’ bankruptcy estate as the court prioritizes restitution to creditors.

FTX creditors are awaiting progress on at least $2.2 billion worth of disputed claims, with some users reporting issues with the KYC verification process.

The UK Insolvency Service has hired a former police investigator to help creditors recover cryptocurrency from failed companies and criminal cases.

The payouts to FTX creditors have sparked both controversy and speculation that the payouts could be reinvested back in the crypto markets.

Not all FTX account holders will be reimbursed in the second distribution of assets, but the trust said it will send more than $5 billion “within 1 to 3 business days” of May 30.

Former Cred CEO Daniel Schatt and ex-financial chief Joseph Podulka admitted to misleading customers about the firm’s financial troubles as part of a plea agreement.

Backpack allows former FTX EU users to reclaim euro balances after KYC verification, following its acquisition of the bankrupt crypto platform's EU arm.

FTX has sued NFT Stars and Kurosemi, which operates as Delysium, in the collapsed crypto exchange’s latest bid to try to scrape together money for its creditors.

Nearly 400,000 FTX users risk losing $2.5 billion in crypto repayments unless they complete KYC verification before the extended June 1 deadline.

Privacy advocates and government officials are urging users to delete their DNA data from 23andMe while blockchain builders seek to bring genomics onchain.

Backpack acquired FTX EU in January 2025 to offer crypto derivatives throughout Europe.

Mt. Gox also shuffled a total of 12,000 Bitcoin worth over $1 billion on March 6 and another 11,833 Bitcoin on March 11.

The missing $1.5 billion may still not have been enough for 3AC to cover creditor claims before the $10 billion crypto hedge fund’s collapse in 2022, Nansen analysts told Cointelegraph.