Celsius Recovers from Bankruptcy, Bitcoin ETFs Grow as Ripple Chairman Faced Hacking in January 2024
Summary:
In January 2024, Bitcoin exchange-traded funds (ETFs), excluding Grayscale Bitcoin Trust, expanded their collective holdings by 142,294 Bitcoins. Emerging from Chapter 11 bankruptcy, Celsius is planning to distribute $3 billion worth of crypto and fiat to creditors. Ripple's chairman, Chris Larsen, fell victim to a hack, losing 213 million XRP tokens. In the same month, the Web3 ecosystem experienced a $38.9 million loss due to multiple security breaches.
Excluding the Grayscale Bitcoin Trust (GBTC), all Bitcoin (BTC) spot Exchange-Traded Funds (ETFs) collectively grew by 142,294 Bitcoins in January 2024 since they kicked off. Celsius, successfully emerging from its U.S. Chapter 11 bankruptcy, is poised to begin distributing crypto and fiat currency equivalent to $3 billion to debtors. Ripple chairman Chris Larsen became a victim of hacking, losing 213 million XRP tokens, as detected by blockchain investigator ZackXBT. The Web3 sphere witnessed a loss of $38.9 million due to varying security breaches during the first month of 2024.
Data from Cointelegraph reveals that while Grayscale Bitcoin Trust (GBTC) shed a total of 132,195 Bitcoins in January, reducing its Bitcoin holdings by 21% from 619,220 to 487,025 BTC, the remaining nine ETFs compensatively added 142,294 Bitcoins together from the start of trading. As the month came to end, these ten spot Bitcoin ETFs collectively held 647,709 BTC, an approximate 1.6% increase from the initial 637,610 BTC, currently valued at $27 billion, as per CoinGecko.
The roll-out of spot Bitcoin ETFs in America elicited a mixed response, with many viewing it as a “sell the news” moment and anticipating more pressure from the future market. ARK Invest's CEO, Cathie Wood, had suggested in 2023 that some investors might react to the spot Bitcoin ETF approval by "selling on the news."
After regaining its feet from bankruptcy on January 31, 2024, and concluding its restructuring process, Celsius is set to start returning fiats and cryptocurrencies totaling over $3 billion to its creditors. The majority of the creditors (approximately 98%) accepted the plan to exit bankruptcy, over a year and a half after Celsius froze withdrawals and declared bankruptcy. By converting altcoins to either Bitcoin or Ethereum and via past settlements, Celsius increased the cryptocurrency amount set for distribution to creditors by about $250 million.
Ripple chairman Chris Larsen lost an estimated $112.5 million to a hacker, who stole about 213 million XRP tokens from him. Larsen confirmed the unauthorized breach of his personal XRP accounts but mentioned that he quickly noticed the issue and requested exchanges freeze the affected addresses promptly while involving law enforcement.
Though the news led to a temporary dip in XRP's price, it recovered speedily. Security breaches and theft aren't uncommon in the cryptocurrency industry. PeckShield's data reveals that in 2023, more than 600 significant crypto-space hacks resulted in losses totaling about $2.61 billion, with over $674 million successfully recovered.
January 2024 saw various DeFi security startup Quantstamp-associated Web3 projects lose a cumulative $38.9 million due to numerous security breaches like key compromises, smart contract hacks, and scams. The worst-affected smart contract protocols include Radiant Capital, Gamma Strategies, Wise Lending, Socket, and Goledo Finance.
This piece does not offer investment advice. Every investment encompasses a degree of risk, suggesting that readers should carry out proper research before deciding.
Published At
2/1/2024 2:48:07 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.