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The bankrupt crypto exchange FTX is reportedly primed to begin paying its main group of creditors at the end of May. Business restructuring lawyer Andrew Dietderich said in court last week that the payouts are scheduled to begin on May 30th, Bloomberg reports. FTX will use its $11.4 billion cash reserves, which were amassed after the crypto exchange went down, to reimburse major creditors. FTX classifies its main creditors as individuals and institutions that had millions of dollars stashed in the platform prior to its collapse. Meanwhile, smaller creditors categorized in FTX’s “Convenience Class” started receiving distributions in February, per a press release from the exchange. In October, a US bankruptcy court greenlit FTX’s plan to distribute between $14.7 billion and $16.5 billion worth of payouts to the crypto exchange’s former customers. The plan calls for 98% of the exchange’s creditors to receive approximately 119% of the value of thei...

The Mt. Gox claims site has been down for more than 24 hours with users claiming they’ve been hit with a flurry of attempted login emails, potentially as part of a large-scale brute-force password attack. Creditors in the Mt. Gox insolvency Reddit thread claimed on Wednesday that they are getting upwards of 22 emails notifying them of attempted logins from their Mt. Gox claim accounts.  One claimed to have had six attempted email logins, and questioned, “Is this a successful hacking attempt or a side effect of the Kraken news?” Dozens of users in the threads claim that they are receiving multiple attempted login emails out of the blue.  A screenshot of the login emails shared on Reddit. The Mt. Gox claims portal has been down since Wednesday . At the time of writing it displays a maintenance message that reads, “This website is temporarily down for maintenance. Thank you for your patience. Please check back shortly.” Users unsure if Mt. Gox has bugs or hackers Multiple use...

Digital Currency Group (DCG), the parent company of the insolvent crypto lending firm Genesis, is pushing for a repayment plan for its creditors , which includes participants in the Gemini Trust Co.’s Earn program. In a filing on Wednesday, Sep. 12, DCG assured Gemini Earn program investors that they could potentially receive complete reimbursement, equal to or even exceeding their initial investment. pic.twitter.com/vw4ONdHB0u — Digital Currency Group (@DCGco) September 13, 2023 Partial repayments will be made in Bitcoin (BTC) and Ethereum (ETH). The filing also indicates that other unsecured creditors of Genesis could potentially recover between 70% and 90% of their investments, which stands as a notable improvement compared to the expected payouts to customers of other insolvent crypto services like Voyager Digital and BlockFi Inc. You might also like: Genesis suing DCG to recover $620m in outstanding loans This suggestion comes as part of ongoing effor...

BlockFi said selling its cryptocurrency lending platform might not generate value for creditors. Disgruntled creditors of the bankrupt cryptocurrency lending firm BlockFi have submitted a new court filing in response to the company’s latest restructuring plan. On May 12, BlockFi outlined its Chapter 11 plan of reorganization in a filing with the United States Bankruptcy Court in Trenton, New Jersey. The firm said that selling BlockFi might not generate enough value for creditors as it owes nearly $1.3 billion to its top 50 creditors . In response, BlockFi creditors submitted another court filing on May 15, arguing that BlockFi deliberately took measures to delay the trial. Represented by the law firm Brown Rudnick, BlockFi creditors wrote that BlockFi sold about $240 million worth of crypto before filing for bankruptcy in late November 2022. The creditors emphasized that the crypto lender sold the assets “at the nadir,” referring to a massive market slump following the collapse of F...