The FTX Debtors, made up of FTX and its affiliated debtors, and FTX Digital Markets (FTX DM), the Bahamian subsidiary of FTX, announced Jan. 6 that they have reached a cooperation agreement regarding the FTX Debtors’ Chapter 11 bankruptcy case in Delaware and the provisional liquidation of FTX DM in the Bahamas. Under the agreement, the parties will “share information, secure and return property to their estates, coordinate litigation against third parties and explore strategic alternatives for maximizing stakeholder recoveries.” They have also set parameters for cooperation in each other’s court cases. In addition, the parties agreed the joint provisional …

The legal team for former FTX chief executive officer Sam Bankman-Fried has filed a motion in an effort to stop the exchange’s debtors from controlling more than $450 million worth of shares of Robinhood. In a Jan. 5 court filing regarding FTX’s bankruptcy case, Bankman-Fried’s lawyers said FTX debtors had “failed to carry their heavy burden” establishing that they had a legal claim to more than 56 million Robinhood shares. The legal team confirmed reports that the United States Departure of Justice was in the process of seizing the shares, but said SBF was “compelled to reply” given the stakes …

A group of FTX customers has filed a limited objection to FTX’s plan to sell four independently-operated subsidiaries, arguing that they should be privy to the sales process to ensure customer interests are represented. It has also shared concerns that "misappropriated customer funds” may have been used to acquire, or keep these firms running. The limited objection was filed on Dec. 4 by an ad hoc committee of non-U.S. customers, which comprises 18 members who collectively have claims against FTX in excess of $1.9 billion. In its filing, the committee argued that previous public statements by FTX, the Securities and …

Three Arrows Capital (3AC) founders Zhu Su and Kyle Davies were subpoenaed on Twitter on Jan. 5, after the liquidators granted permission from Singapore authorities following a United States bankruptcy court order. As reported by Cointelegraph, liquidators' lawyers have repeatedly failed to engage with the founders in recent months. “A communication protocol was agreed between the liquidators and founders but has not yielded satisfactory cooperation,” according to a hearing presentation. The subpoena requests Su and Davies to "furnish all documents available to you regardless of whether this information is possessed directly by you, your agents, representatives, employees, or investigators; or …

The United States Securities and Exchange Commission (SEC) has filed a “limited objection” to crypto exchange Binance.US’s proposed $1 billion takeover of bankrupt crypto lender Voyager Digital, citing a lack of “necessary information.” The limited objection was filed on Jan. 4, with the SEC pointing to a lack of detail regarding Binance.US’s ability to fund the acquisition, what Binance.US’s operations would look like following the deal, and how customer assets will be secured during and after the transaction. A limited objection is similar to a normal objection but only applies to a specific part of the proceedings. Additionally, the regulator …

The United States Departure of Justice has reportedly seized or was in the process of seizing more than $400 million worth of Robinhood shares linked to FTX as part of the case against the crypto exchange. According to a Jan. 4 report from Reuters, U.S. officials told a judge they were in the process of seizing assets tied to FTX and its former CEO Sam Bankman-Fried, which included 56 million shares of Robinhood — worth roughly $468 million at the time of publication. The report followed a judge in the criminal case against SBF ordering him not to access or …

Judge Martin Glenn, who is presiding over the Celsius bankruptcy case, ruled on Jan. 4 that the funds in the Celsius interest-bearing Earn program belong to Celsius under the terms of the program’s terms of use. The funds reportedly amount to more than $4 billion. “The issue of ownership of the assets in the Earn Accounts is a contract law issue,” Judge Martin wrote, citing the latest version of the Earn program’s terms of use that stated lending platform Celsius held “all right and title to such Eligible Digital Assets, including ownership rights.” Related: Core Scientific shuts down 37K mining …

The United States Attorney’s Office for the Southern District of New York (SDNY) has formed an FTX Task Force to “trace and recover” missing customer funds, as well as handle investigations and prosecutions related to the exchange’s collapse. The announcement came via a statement from U.S. Attorney Damian Williams who is the federal prosecutor in the FTX case involving founder Sam Bankman-Fried. Charges from the Manhattan attorney’s office against Bankman-Fried include wire and securities fraud, conspiracy to commit wire and securities fraud, money laundering and violation of campaign finance laws. “The Southern District of New York is working around the …

Bankrupt cryptocurrency lender Celsius Network agreed to let Bitcoin (BTC) miner Core Scientific shut off more than 37,000 mining rigs it had been hosting for Celsius during the miner’s bankruptcy proceedings. Core Scientific filed a revised proposed order on Jan. 3 which incorporated “revisions acceptable to Celsius” noting “all Celsius rigs will be powered down effective January 3, 2023 and will not be restarted during the transition period.” Previously, Core Scientific accused Celsius of failing to pay its power bills on Oct. 19 citing the non-payment as a major factor leading to its liquidity issues after the Bitcoin miner filed …

The collapse of FTX Group may not yet be the end of its contagious spread, as clawback provisions could force business and investors to return billions of dollars paid in the months leading up to the crypto exchange's collapse, an insolvency attorney told Cointelegraph. In short, a clawback refers to money paid out that is required to be returned due to special circumstances or events, such as an insolvent company that needs to recover funds paid within 90 days before filing for Chapter 11. If the creditor is an insider, the 90-day period is extended to one year. As a …

A group of non-U.S. FTX customers are pushing to have their names and private information redacted from court documents as part of the crypto exchange’s Chapter 11 bankruptcy process. In a Dec. 28 joinder filing, the “The Ad Hoc Committee of Non-US Customers of FTX.com” (Ad Hoc Committee) stressed that publicly revealing the names and private information of customers runs the potential risk of identity theft, targeted attacks and “other injury.” “Requiring the Debtors to disclose the FTX.com customers’ names and other identifying information to the general public would cause irreparable harm, further victimizing the FTX.com customers whose assets were …

Bankrupt crypto lender Celsius Network is planning to file a motion that would extend the deadline for users to submit their claims by another month. The crypto community has started to grow impatient, noting that Celsius’ lawyer fees have continued to stack up and are eating away at the lender's estate. In a Dec. 29 Twitter post, Celsius announced that it would be seeking an extension that would extend the current deadline for claims from Jan. 3, 2023 to early Feb. 2023. The bankruptcy court is set to hear the motion on Jan. 10, and according to Celsius, the Jan. …