Daily Digest - 10 January 2023

Headlines

▌BlockFi plans to file bankruptcy balance sheet on January 11

The encrypted lending company BlockFi announced that it will disclose information on its assets and liabilities, as well as payment information received before filing for bankruptcy in November. In a Twitter post on Jan. 9, BlockFi said it had submitted a presentation to its stakeholders detailing plans for future court filings and an outline of the bankruptcy process. It contacted 106 potential buyers shortly after its first bankruptcy hearing in November, and will ask the court on Jan. 30 to approve the bidding process, according to the lender. BlockFi said it plans to file its assets and liabilities and financial statements on Jan. 11. The announcement comes after the U.S. Department of Justice notified the court handling BlockFi’s bankruptcy that it had seized more than 55 million shares of Robinhood. BlockFi is one of the parties claiming rights to shares given certain financial ties to FTX.

Policies

▌CFTC Files Market Manipulation Charges Against Mango Markets Attackers

The U.S. Commodity Futures Trading Commission (CFTC) filed manipulation charges against Mango Markets attacker Avraham Eisenberg on Monday. Monday’s lawsuit accuses Eisenberg of violating federal commodity laws by using “manipulative or deceptive devices” to manipulate the price of MNGO tokens through swaps and manipulating the swaps to take advantage of Mango Markets last October. More than $100 million in cryptocurrency has been stolen from a decentralized exchange after a trader used multiple accounts to buy, sell and hedge the price of MNGO tokens. Like the DOJ, the CFTC also referred to Eisenberg's public statements that he "admitted his scheme" on a Discord server before exploiting the vulnerability and in tweets after the funds ran out. “Contrary to his belief that his actions were lawful, they in fact constituted blatant manipulation of spot prices and swaps,” the CFTC said.

Cryptocurrency

▌BlockFi management has not withdrawn any cryptocurrency since October

A lawyer for BlockFi told a New Jersey court on Monday that executives of bankrupt cryptocurrency lender BlockFi have not withdrawn any cryptocurrencies locked on the platform since October, and they are quarreling with bankrupt cryptocurrency lender Celsius. A comparison was made. BlockFi filed for bankruptcy in late November 2022, shortly after cryptocurrency exchange FTX plummeted. Joshua Sussberg, partner at law firm Kirkland & Ellis and representing BlockFi, said at the second hearing of its Chapter 11 bankruptcy proceedings that the company plans to file its Statement of Assets and Liabilities and Financial Statements (SOFA) on Jan. 11, which BlockFi later adopted. Its Twitter account confirmed this. The company also plans to ask the court to approve the bidding process at a Jan. 30 hearing, Sussberg said in his presentation. Sussberg also noted that five members of the management team withdrew about $15 million, including about $6 million from CEO Zac Prince, which was classified as "litigation settlements" or taxes paid through executives. No member of the BlockFi management team has withdrawn any cryptocurrency from the platform after October 14, 2022, and no member has withdrawn more than 0.2 BTC in value at any time after August 17, 2022.

▌Lawyer submits court motion requesting Celsius users to receive Flare airdrop tokens

According to lawyer John Deaton (John Deaton), although the encrypted lending platform Celsius has filed for bankruptcy, its users may receive Flare airdrop tokens. At present, the lawyer has filed a court motion for XRP holders on Celsius (snapshot back to December 2020), which hopes to authorize the debtor to credit Flare tokens to all eligible accounts, relevant court hearings Will be convened by bankruptcy judge Martin Glenn on January 24. If the motion is approved, relevant users will receive Flare airdrop tokens, and Flare Network CEO Hugo Philion also expressed hope that the motion will be approved by the court. According to Jinse Finance’s previous reports, Flare Network launched TDE at 23:59 UTC on January 9th, and was supported by wallets such as Atomic, Bybit, and Bitfrost Wallet.

▌Forbes report: Binance’s capital outflow reached 12 billion US dollars in less than 60 days

The latest analysis report released by Forbes shows that the cryptocurrency exchange Binance is experiencing capital outflows. On December 13, Nansen, an independent encrypted data company, broke the news that Binance lost $3 billion in assets within a week, accounting for 4% of the company's total assets at the time. But a Forbes investigation shows that since the same day Changpeng Zhao downplayed the Nansen withdrawal report on Twitter, Binance has lost 15% of its assets, or nearly a quarter of its assets in less than two months. of the funds left the Binance exchange, reaching $12 billion. In addition, the Binance platform currency BNB has fallen by 29% in the past two months. According to Forbes estimates, Binance has about 29 million tokens left, which is 51% less than the number disclosed by the exchange on November 10. At the same time, the volume of the company’s BUSD stablecoin has dropped by 40%. Binance also appears to be losing trust and influence, with investors in well-known altcoins such as Matic, APE, and gala cutting their holdings on the exchange by 40-50% despite a 24% drop in net assets since November.