|Bull Market for Bankruptcy Lawyers: Celsius Legal Fees Surpass $53 Million in Bankruptcy Case
Bankrupt crypto lender Celsius is seeking to extend the deadline by another month; the extension, which will be heard in bankruptcy court on January 10, is needed “to provide account holders with additional time to file any proofs of claim,” as per a Celsius Tweet. The company’s creditors have already filed more than 17,200 claims, with lawyers and other advisers seeking $53 million in legal fees for their services in just the four months following Celsius’ filing for bankruptcy.
China Launches State-owned Digital Asset Trading Platform
The trading platform was created jointly by several state-owned organizations: The China Technology Exchange, the Cultural Relics Exchange, and the Copyright Service Centre, which “aims to standardize the trading process to dampen speculation,” according to reports. Perhaps China is responding to demand in the country for a way to buy NFTs and other digital goods after several large technology firms such as Tencent and Baidu limited their offerings. China has previously announced a ban on Bitcoin mining and has generally taken a dim view of cryptoassets but has been a big proponent of Central Bank Digital Currencies. Details are scant but this is worth watching.
Ethereum Founder Vitalik Buterin Hopes For Solana’s Revival Amid Market Struggles
Ethereum founder Vitalik Buterin has expressed his support for rival cryptocurrency Solana, saying that he hopes the project and its developer community “gets its fair chance to thrive.” The price of Solana, which was once dubbed an “Ethereum killer,” has fallen by over 96% since its all-time high. Solana has faced criticism for being too centralized and unstable and has also been affected by its association with collapsed FTX Founder and Former CEO Sam Bankman-Fried, who invested heavily in the cryptocurrency and supported Solana projects with venture deals and market-making. The liquidation of Bankman-Fried’s companies’ assets could have severe implications regarding further Solana price slippage, as they collectively held over 58 million Solana, representing 15% of Solana’s current circulating supply.
FTX Founder Sam Bankman-Fried Pleads Not Guilty
FTX Founder Sam Bankman-Fried plead not guilty to criminal charges that he defrauded investors and looted billions of dollars in customer funds at his now-collapsed cryptocurrency exchange. Bankman-Fried is charged with two counts of wire fraud and six counts of conspiracy, including money laundering and campaign finance violations. He previously acknowledged these as “risk management failures” before discovering that former Alameda CEO Caroline Ellison and former FTX CTO Gary Wang had pleaded guilty and were cooperating with prosecutors.
Galaxy Digital’s $100 Million Investment Keeps Argo Blockchain Afloat
Bitcoin miner Argo Blockchain has struck a deal to sell its Helios mining facility in Texas to Galaxy Digital for a whopping $65 million. The facility, which was Argo’s largest and has 180 megawatts of power capacity, will become the flagship mining operation for Galaxy. In addition, Argo will receive a $35 million loan from Galaxy Digital, secured by Argo’s 23,000+ mining machines. The deal comes as a much-needed boost for Argo’s balance sheet after a previous $27 million funding deal fell through in October. Several miners have faced solvency issues, with rising energy costs and Bitcoin prices remaining low. Galaxy Digital’s investment ensured the stability of these miners, which is imperative for the Bitcoin network; the failure of Argo Blockchain or similarly sized mining companies would decrease the overall mining power of the network and cause slower transaction confirmation times.
Reboot or Selloff? FTX’s New CEO Weighs Next Steps FTX CEO John J. Ray III, who is leading the company…