Daily Digest - 12 January 2023

Headlines

▌El Salvador passed the digital asset bill

El Salvador’s Legislative Assembly approved a law on the issuance of digital assets other than Bitcoin on Wednesday. A legal framework for the issuance of bitcoin-backed bonds, also known as volcano bonds, is included in the legislation. Sixty-two lawmakers voted in favor of the bill, while 16 voted against it.

Cryptocurrency

▌Three Arrows Capital Creditors Express Dissatisfaction with Continued Cost and Asset Disposal in Bankruptcy Proceedings

Kyle Davies, the co-founder of Three Arrows Capital, disclosed on Twitter that the first meeting of creditors of Three Arrows Capital was held on January 11. Davies invited all creditors to join the group and announced that regular meetings would be held. Davies said creditors continued to express dissatisfaction with the ongoing disposition of costs and assets in the bankruptcy process, suggesting that "disputes among creditors are dragging out the process and companies are not maximizing their residual value after bankruptcy." The group discussed several topics, including how to reduce “ongoing legal costs, filing claims against Luna Consortium/FTX/Genesis on a contingency basis, and organizing better ways to handle asset sales/distributions.”

▌Delaware judge: Senator's letter to court will not affect FTX's judicial ruling

Delaware judge John Dorsey said at a court hearing on Wednesday that the bipartisan letters from four U.S. senators were an "inappropriate" intervention in FTX's bankruptcy proceedings, but would not affect judicial decisions. This letter from John Hickenlooper (D-Colo.), Thom Tillis (RN.C.), Elizabeth Warren (D-Mass.) and Cynthia Lummis (R-Wyo.) asks whether the law firm Sullivan & Cromwell has the capacity to the new executive who fairly represented the cryptocurrency company challenged and called for the appointment of an independent examiner to investigate the FTX bankruptcy case.

▌Federal Bankruptcy Judge Terminates FTX and Miami Center Stadium Naming Agreement

A federal bankruptcy judge on Wednesday terminated FTX’s naming rights agreement with Miami-Dade County for the downtown stadium where the NBA’s Miami Heat play their home games. The order states that Miami-Dade County will immediately stop using the FTX name and plans to remove all signs from the arena, the newspaper said. Officials in Miami-Dade County said in November they would be looking for a new naming rights partner and working to end their business relationship with FTX after it filed for bankruptcy. The complex, known as the FTX Arena since a $135 million naming rights deal was announced about two years ago, is located in downtown Miami and also hosts non-basketball events.

▌Source: Twitter is reportedly considering selling usernames to increase revenue

Two sources said that Twitter is considering selling user names to increase new revenue. Related discussions have started at least since December last year, and online auctions for user names are one of the ways. A username is a word, a number, or a string of characters following the @ symbol. For example, Musk’s username is @elonmusk. It was unclear whether the project would go ahead or whether the plan would affect all or just a subset of usernames, the people said. But Musk said last month he wanted to start purging Twitter of inactive accounts, freeing up 1.5 billion usernames. Only certain usernames may be valuable, such as famous people, brands, and popular names.

▌Delaware judge allows FTX creditor list to remain secret for at least another three months

Jinse Finance reported that Delaware bankruptcy judge John Dorsey allowed FTX's creditor list to remain secret for at least another three months. At Wednesday's hearing, Judge Dorsey dismissed calls from media organizations and the U.S. government to keep the legal process transparent, but said he may change his mind at a future hearing. Law firm Finger & Slanina, representing Bloomberg, Dow Jones, The New York Times and the Financial Times, advocated for transparency by publishing the list. They argue that the public has a right to inspect judicial records and that only in very limited circumstances can federal courts restrict or deny such access. John Dorsey said: "I will overrule the objection and allow them the 'list of creditors' to remain sealed at this point, we are talking here about individuals who are not present, individuals who may be at risk if their names and information are disclosed .”