BlockFi exits bankruptcy, USDC payments halted by Worldcoin among other developments.

BlockFi, a crypto lending platform, has announced its emergence from insolvency, following in the footsteps of FTX which recently recovered $7 billion in assets. FTX debtors, which includes FTX and affiliates, estimate that $8.7 billion has been misappropriated from customers. BlockFi, as one of the largest creditors to FTX, with loans totaling over $650 million, is closely tied to FTX’s ability to recover its assets.

While FTX’s new management is exploring options such as selling the exchange or partnering with another entity to revive it, BlockFi’s court filings indicate that it has no choice but to wind down operations.

In other news, BlackRock’s proposed spot Bitcoin exchange-traded fund (ETF) has been listed on the Depository Trust & Clearing Corporation (DTCC), a move that suggests potential approval by the United States Securities and Exchange Commission (SEC). Bloomberg ETF analyst Eric Balchunas believes this listing indicates that BlackRock may have received approval from the SEC or is preparing for it. The SEC has until January 10, 2024, to make a final decision on the ETF.

Meanwhile, BlockFi has emerged from bankruptcy and is now allowing customers to withdraw funds from their wallets. The platform will also enable BlockFi Interest Account and Loan customers to withdraw assets in early 2024. With its emergence from bankruptcy, BlockFi can now initiate the recovery of assets from other firms it believes owe it money, including Three Arrows Capital and FTX.

In another development, Ledger, the hardware wallet firm, is rolling out its cloud-based private key recovery tool. The solution, provided by Coincover, faced criticism from the crypto community, leading Ledger to pause the service earlier this year. Ledger has now released the open-source code for the service on GitHub and is offering it as a paid subscription.

Lastly, Worldcoin, the cryptocurrency project known for its eye-scanning technology, is set to stop paying Orb Operators in USDC and will instead compensate them with its native token, WLD. This transition is part of the project’s plan following its official launch in July. The supply of the Worldcoin token has grown from 100 million at launch to approximately 134 million.

In conclusion, the market is seeing some positive developments with BlockFi emerging from bankruptcy and returning funds to customers, while discussions about FTX’s future continue. BlackRock’s spot Bitcoin ETF listing on the DTCC suggests progress towards SEC approval. Ledger is launching a cloud-based private key recovery tool, and Worldcoin is changing its payment scheme for Orb Operators.

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