FTX, BlockFi to Continue Claims Settlement; Fake XRP Trust Filing Causes Shift; CBOE to Start BTC, ETH Futures; Tether Mints 4B USDT
Summary:
A court ruling permits bankruptcy-struck crypto firms FTX and BlockFi to continue claims settlement negotiations. Meanwhile, a phony representation of XRP's price using a fake BlackRock trust filing led to market fluctuations. CBOE intends to introduce Bitcoin and Ether margin futures trading, while stablecoin company Tether issues 4 billion USDT, accounting for about 18% of all USDT distributed in 2023 so far.
A court ruling has allowed FTX and BlockFi, two crypto firms that have filed for bankruptcy, to continue negotiations relating to claims settlement. At the same time, a fake representation of XRP's price triggered a rapid shift in its value by imitating a filing from BlackRock for an XRP trust. In other related news, CBOE announced it will soon kick off Bitcoin and Ether margin futures trading, whereas Tether, the stablecoin company, issued 4 billion USDT over the past month, which forms approximately 18% of all USDT issued so far in 2023.
According to a recent court order, FTX and BlockFi, the bankrupted crypto corporations, now have the green light to engage in settlement discussions over their claims. Michael Kaplan, the United States bankruptcy judge, lifted an automatic stay that was previously hindering the progress of legal proceedings between these two companies. This now allows FTX's debtors to put forward their respective stands, counterclaims, defenses, and offsets pertaining to the BlockFi claims in connection to FTX's bankruptcy case.
Both companies sought Chapter 11 bankruptcy in November 2022 after FTX crashed at the start of that month. It's speculated that around $355 million in funds of BlockFi were frozen on the FTX platform, another $671 million was due from Alameda Research. The court order states that there will be no allowance for FTX debtors to receive any form of distribution from BlockFi debtors. Both parties are expected to lodge mediation with the Delaware Bankruptcy court shortly.
On November 13, there was a sudden jump and crash in XRP's value within an hour due to a fabricated BlackRock filing hinting that the asset manager was setting up an XRP exchange-traded product. The fakeness of this was confirmed soon after. A rapid 12% surge was observed in XRP's value, shooting it up to the $0.73 mark within the initial 30 minutes post the news of the filing. Not long after, however, it shed all its gains in the following 30 minutes once it turned out to be a hoax as confirmed by Eric Balchunas, the Bloomberg ETF analyst.
Cboe Digital has announced it will kickstart its Bitcoin margin futures trading come January 11, 2024. This would make it the first U.S. crypto-oriented exchange that provides both leveraged derivatives trading and spot trading on one platform.
Lastly, stablecoin issuer Tether has been actively issuing new tokens, marking the release of 4 billion USDT in the last month. This comprises almost 18% of all USDT that has been issued so far in 2023. Meanwhile, Tether is also destroying certain coins while new ones are being minted. On August 22, Tether destroyed 1.2 billion USDT on the Tron blockchain. Before this, the stablecoin firm also destroyed 3.1 billion Tron USDT in June and 2 billion Ethereum USDT in February.
Please note that this article does not offer investment guidance or suggestions. All investment and trading actions come with a certain degree of risk. Thus, readers should carry out their own thorough research before arriving at any decision.
Published At
11/13/2023 9:05:00 PM
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