SEC Faces Subpoena Threat Over FTX, Binance Exits Russia, BlockFi Cleared For Payouts in Bankruptcy
Summary:
U.S. House Financial Services Committee Chairman, Rep. Patrick McHenry, threatens to subpoena the SEC over its dealings with FTX. Meanwhile, Binance fully withdraws from Russia, selling its operations to newly-formed exchange, CommEX. In other crypto-related news, BlockFi, a crypto lender undergoing bankruptcy proceedings, gets court approval for a liquidation plan, bringing customers closer to getting their crypto assets repaid.
The Chairman of the U.S. House Financial Services Committee, Representative Patrick McHenry, has issued a stern warning to the U.S. Securities and Exchange Commission (SEC), threatening to subpoena if they fail to provide crucial documents concerning dealings with FTX. Coupled with this is the big news about Binance pulling out of Russia entirely. The world-renowned crypto exchange plans to hand over its Russian operations to a freshly established exchange, CommEX, but did not disclose the financial specifics of the transaction. In related news, BlockFi, the beleaguered crypto lending service, may be the first in a series of similar situations where customers see their crypto assets returned in bankruptcy cases.
In a congressional hearing on September 27, Patrick McHenry criticized SEC Chairman Gary Gensler's handling of the digital asset landscape, accusing him of stunting its growth. He also expressed dissatisfaction over Gensler's purported lack of transparency concerning the SEC's interactions with FTX and Sam Bankman-Fried. McHenry attests that his committee repeatedly requested documents regarding the circumstances of Bankman-Fried's arrest but to no avail. Bankman-Fried, the former FTX CEO, was imprisoned in August facing 12 criminal charges after a judge nullified his bail on allegations of witness intimidation. His initial trial is scheduled to start next month.
Binance's complete withdrawal from Russia came with the announcement of its impending sale of its Russian segment to CommEX on September 27. To ensure the transition goes smoothly for the existing user base, there will be a gradual wind-down of services over the course of a year, all the while safeguarding the assets of existing Russian clientele. Binance's Chief Compliance Officer, Noah Perlman, emphasized that operating in Russia does not align with Binance's compliance objectives, yet remains optimistic about the potential for growth in the Web3 domain globally.
On the verge of launching, CommEX made itself known on September 26, seeking to offer a variety of crypto-transaction services. CommEX's user interface currently supports just Russian and English and appears to be primarily marketing towards the former.
In developments concerning BlockFi, customers might soon witness a payout following the approval of the liquidation plan by a United States Bankruptcy Court in New Jersey. The presiding Bankruptcy Judge Michael A. Kaplan greenlighted BlockFi's third revision of their Chapter 11 plan during a court hearing on September 26. Indications are that BlockFi is indebted to over 100,000 creditors, amounting to nearly $10 billion, with $1 billion and $220 million due to its top three creditors and Three Arrows Capital respectively, the bankrupt crypto hedge fund. It should be noted, this piece does not offer investment advice or recommendations, as each investment or trading move carries risks which readers need to consider independently.
Published At
9/27/2023 6:13:46 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.