Crypto exchange Uphold has denied owing around $784 million to the liquidation trust of bankrupt crypto investment platform Cred. At a court hearing on Jan. 11, Uphold filed a motion to dismiss all counts in the suit served against the firm by Cred in June 2022. Cred was a crypto lending service that filed chapter 11 bankruptcy in November 2020. In June 2022, Cred’s liquidation trust filed an adversary complaint against Uphold and two affiliates. It claimed that Uphold worked with Cred co-founders to promote CredEarn and claimed that it owes the crypto lender $783.9 million. According to the lawsuit, …

The names of up to nine million FTX customers are set to remain confidential for at least three more months following the latest ruling in FTX bankruptcy proceedings. The decision was reportedly made by Judge John Dorsey in the Delaware-based bankruptcy court on Jan. 11 in response to a 168-page filing by FTX on Jan. 8 which requested the court to withhold confidential customer information. Judge Dorsey said that he remains “reluctant at this point” to disclose the confidential information, as it may put creditors “at risk,” despite increased pressure from several media outlets: "We're talking about individuals here who …

Miami-Dade County will soon start to remove FTX's advertising brand from the NBA’s Miami Heat arena, after granting the right from a United States bankruptcy judge in Delaware on Jan. 11, the Associated Press reports. County officials negotiated in 2021 a $135 million deal with the crypto exchange for renaming rights to the Miami Heat's arena as FTX Arena until 2040. A number of entrances, the roof of the arena, the basketball court, the security polo shirts, as well as many of the cards employees use to access the facility are branded with FTX logos. Following FTX’s bankruptcy filing, officials …

Kyle Davies, the co-founder of bankrupt hedge fund Three Arrows Capital (3AC), disclosed in a Twitter thread that the first meeting of 3AC creditors was held on Jan. 11. Davies invited all creditors to join the group and announced that it would meet regularly. According to Davies, creditors continue to express frustration with the ongoing costs and handling of assets in the bankruptcy process, suggesting that, "inter creditor disputes are delaying the process, and the estate value is not being maximized." Today we held an ad hoc 3AC creditor meeting. All creditors are open to join and this will be …

Bankrupt crypto lender Voyager Digital received initial court approval for its proposal to sell its assets to Binance.US for $1.02 billion amid a national security probe Voyager is seeking to speed up. On Jan. 10, United States Bankruptcy Judge Michael Wiles allowed Voyager to enter into the asset purchase agreement and seek creditor approval, but the sale will not become final until a future court hearing, according to a Jan. 11 Reuters report. It comes as Voyager wants to expedite a review of its proposal to sell assets to Binance.US which could result in the deal being blocked or delayed. …

A group of four United States senators have criticized one of the law firms involved in the bankruptcy case of crypto exchange FTX for conflicts of interest. In a Jan. 9 letter to Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware, Senators John Hickenlooper, Thom Tillis, Elizabeth Warren, and Cynthia Lummis — a bipartisan group — called on the judge to approve a motion appointing an independent examiner into FTX’s activities prior to its collapse in November. The U.S. lawmakers said Sullivan & Cromwell, the law firm currently tasked with the investigation, had previously provided …

Dallas Mavericks owner Mark Cuban is set to be “deposed” next month as part of a defense against a proposed class-action lawsuit alleging that he promoted an alleged “ponzi-scheme” in the form of now-bankrupted crypto lender Voyager Digital. A deposition in legal terms generally refers to answering a line of questioning under oath during the pre-trial discovery stage of a potential court case. In a Jan. 9 court order, U.S. Magistrate Judge Lisette M. Reid denied Cuban's request to split the deposition into two occasions, and outlined that his full deposition will be taken on Feb. 2 in Dallas, Texas. …

As many as 117 parties have expressed interest in buying up one or more of FTX’s independently operated subsidiaries including FTX Japan, FTX Europe, LedgerX and Embed. In a Jan. 8 court filing made by Kevin Cofsky, a partner at Perella Weinberg, the investment bank representing FTX US and affiliated firms. Cofsky stated: “Approximately 117 parties, including various financial and strategic counterparties globally, have expressed interest to the Debtors in a potential purchase of one or more of the Businesses.” He added that the debtors have entered into 59 confidentiality agreements with potential counterparties who have expressed interest in any …

Crypto lending firm BlockFi has announced it will disclose information on its assets and liabilities as well as payments received prior to its bankruptcy filing in November. In a Jan. 9 Twitter thread, BlockFi said it had filed a presentation for its stakeholders detailing plans for future court filings and a rundown of the bankruptcy proceedings. According to the lending firm, the company reached out to 106 potential buyers shortly after its first bankruptcy hearing in November and will ask for the court’s approval regarding the bidding process on Jan. 30. BlockFi expects to file both its Schedules of Assets …

Bankrupt crypto brokerage Voyager Digital filed documents in United States court Jan. 8 in response to objections raised to the Binance US proposal to buy out its debt. Voyager announced it had approved the offer Dec. 19. The Securities and Exchange Commission (SEC), four states, the U.S. Trustee and Alameda Research filed objections to it. Voyager stated in one document that objections to the Binance US offer “fail to put forward any factual or legal support” in their arguments, while Binance US offered creditors higher recovery rates than other proposals and expeditious recovery. Voyager’s decision to accept the Binance.US plan …

Bankrupt crypto exchange FTX's plans to sell its digital currency futures and clearinghouse LedgerX, among other businesses, were challenged by the U.S. Trustee on Jan. 7, according to Reuters. As per the filing, U.S. Trustee Andrew Vara called for an independent investigation before any sale, claiming that valuable information related to the exchange's bankruptcy could be compromised. The document states: "The sale of potentially valuable causes of action against the Debtors' directors, officers and employees, or any other person or entity, should not be permitted until there has been a full and independent investigation into all persons and entities that …

FTX's new management is seeking to recover millions of dollars in donations made by the crypto exchange and its former CEO Sam Bankman-Fried, reports the Wall Street Journal. At the end of September, FTX's charity arm, Future Fund, had committed more than $160 million to more than 110 nonprofit organizations, including biotech startups and university researchers developing Covid-19 vaccines and working on pandemic studies, as well as nonprofit organizations in India, China and Brazil. As per the report, Future Fund committed $3.6 million to AVECRIS, a company working on a genetic vaccine platform, and another $5 million were donated to …