BlockFi emerges from bankruptcy, Worldcoin stops USDC payments and more.
Crypto lender BlockFi announced its emergence from bankruptcy this week, just days after FTX announced that it had successfully recovered nearly $7 billion in assets. FTX's creditors, FTX and Associates, estimate that $8.7 billion was stolen from customers. BlockFi has lent more than $650 million to FTX, making it one of its top lenders, meaning that its customers' repayment success is tied to FTX's ability to acquire assets.
FTX's new management is carefully considering its future options, including selling the entire exchange — which includes its vast customer base of more than nine million — or partnering with another entity to revive the exchange. The possibility of a neutral return is also on the table.
On the other hand, BlockFi has no other option but to cease operations based on the lawsuit it filed with the court.
This week's CryptoBiz looks at blockchain's emergence from bankruptcy, BlackRock's position on Bitcoin exchange-traded fund (ETF) developments, and changes to Worldcoin's payment plan.
There is finally light at the end of the tunnel for lenders to some of the companies that emerged from the 2022 crypto bear market. Almost a year after filing for bankruptcy, companies like FTX and BlockFi have begun returning their customers' funds.
BlackRock's Spot Bitcoin ETF Now Listed on Nasdaq Trade Clearinghouse – Bloomberg Analyst
The iShares spot Bitcoin ETF offered by investment firm BlackRock has been listed on the Depository Trust & Clearing Corporation (DTCC), indicating approval by the United States Securities and Exchange Commission. In an October 23 X (formerly Twitter) thread, Bloomberg ETF analyst Eric Balchunas said the DTCC listing is “all part of the process” of bringing a crypto ETF to market. “this is [the] The first position ETF listed on DTCC, none of them are out there (yet),” said Balchunas. Balchunas speculated that BlackRock may have received the green light from the SEC to list the ETF, or that it was “preparing everything in anticipation.” Based on the filing date of BlackRock's application, the SEC has until January 10, 2024 to make a final decision on whether to approve or reject the ETF.
The iShares Bitcoin Trust is listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the token will be $IBTC. All part of the process of bringing the ETF back to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0
— Eric Balchunas (@EricBalchunas) October 23, 2023
BlockFi exits bankruptcy and opens wallet withdrawals.
Crypto lending platform BlockFi has emerged from bankruptcy and is ready to repay some lenders, according to a blog post on October 24. Withdrawals are “currently available to almost all Wallet customers.” BlockFi emerging from bankruptcy can now try to recover assets from other firms it believes are owed money. This includes bankrupt crypto platforms like Three Arrows Capital and FTX. The total amount distributed depends on BlockFi's bankruptcy of FTX and other factors.
Registry Hardware Wallet releases a cloud-based private key recovery tool.
Hardware wallet company Ledger is rolling out its cloud-based private key recovery solution despite heavy criticism from the crypto community. The solution offered by blockchain security platform Coincover is a paid subscription service that allows users to back up their secret recovery phrases. The birth comes months after he left rehab in May 2023 for community response. Ledger CEO Pascal Gauthier further stated that the company will launch the product once the open source code is released. The Ledger Recover code is now available on GitHub.
Worldcoin will stop paying Orb operators in USDC until the beginning of November
Worldcoin is set to begin paying its orb operators — who are rewarded for scanning people's eyes — in its native Worldcoin (WLD) token and US dollar coin (USDC) next month. The change will affect most regions. Worldcoin said the move to fully pay Orbi operators through WLD is part of a “transitional phase” after the official launch of the project on July 24. Worldcoin's official Dune Analytics dashboard data shows that the supply of WLD tokens has grown from approximately 100. million to around 134 million at the start of this week.
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