Judge Gives FTX Go-Ahead to Start Selling Crypto Holdings Worth Billions
A US bankruptcy court has approved FTX's motions to begin selling its cryptocurrency holdings, allowing the collapsed exchange to raise funds for creditors. FTX leaders argued the estimated $3.4 billion in assets—including $1.16 billion of SOL and $560 million of BTC—must be liquidated. While some raised concerns over tracing individual customers' funds in the pooled assets, the judge granted approval.
FTX can now sell up to $100 million per week of most tokens, with the cap potentially increasing to $200 million on a case-by-case basis, under guidance from a financial advisor. Proceeds will go towards bankruptcy proceedings. The decision was viewed favorably as helping to expedite the process for creditors, though others worry large volumes entering the already shaken crypto market could drive further price drops across assets. With approval granted, FTX can commence slowly liquidating its substantial cryptocurrency reserves aimed at addressing obligations following its implosion in November of 2022.
Crypto Adoption Highest in Developing Nations According to 2023 Chainalysis Index
The 2023 Chainalysis Global Crypto Adoption Index, which analyzes on-chain transaction data and web traffic to determine which countries have the highest cryptocurrency usage among citizens, found that developing nations are leading the way. India, Nigeria and Vietnam topped the list. Lower-middle income countries ranked by the World Bank saw the strongest recovery in grassroots crypto adoption following the collapse of FTX in late 2022. This group is unique in that adoption levels remain higher than in mid-2020 prior to the last bull market.
Experts suggest cryptocurrency can fill important financial needs as economies in these lower-middle income nations continue developing. The findings imply crypto may play a major role in their future economic growth. With over 40% of the world's population residing in lower-middle income countries, where grassroots crypto usage has proven most resilient, continued adoption trends there could be a significant driving factor for the digital asset class on a global scale moving forward. If current patterns persist, it appears cryptocurrency may become more deeply ingrained within emerging economies.
CoinEx Hit By Hack, Freezes Transactions As $27M Lost
Crypto exchange CoinEx has suspended withdrawals after detecting a suspected $27 million hack. On September 12th, the platform's risk control system found anomalous withdrawals from several hot wallets used to store exchange assets. Initial alerts indicated losses of millions in Ethereum, Tron and Polygon tokens. While the precise amount is still being determined, CoinEx acknowledged it was a small portion of total assets. In response, the exchange immediately suspended deposits and withdrawals to investigate. Several suspect wallet addresses have since been shared. Affected tokens also include Bitcoin, Arbitrum and Solana. CoinEx assured users their funds are secure and uncompromised, pledging full compensation for losses. Last month the exchange had boasted of never suffering a security breach thanks to world-class security, highlighting the serious nature of this incident. Users now await further updates as CoinEx works to determine the full scope and source of the suspected millions stolen in the apparent exploit.
Opera Debuts In-Browser Stablecoin Wallet for African Users
Opera has launched a new stablecoin wallet integrated into its popular mobile browser for users in Africa. Called MiniPay, the non-custodial wallet is built on the Celo blockchain and allows sending and receiving of stablecoins using mobile phone numbers. With over 100 million users across Africa from its Opera Mini browser, the new wallet aims to give its existing customer base affordable access to digital assets.
MiniPay enables fast transactions with sub-cent fees and supports local fiat onboarding/offboarding services. It automatically backs up wallets through Google authentication as well. Built in collaboration with Celo, MiniPay addresses concerns Africans have cited around high payment costs and lack of mobile data access. By deploying the wallet through its established browser platform, Opera intends for MiniPay to introduce stablecoin utilization and decentralized applications to its extensive African user base in a simple way.
OneCoin Co-Founder 20 Years Behind Bars For Lead Role in $4 Billion Crypto Fraud Scheme
Karl Greenwood, a co-founder of the infamous OneCoin cryptocurrency scheme, was sentenced to 20 years in prison by a US federal court for his role in the massive fraud. OneCoin, operated out of Bulgaria starting in 2014, fraudulently masqueraded as a cryptocurrency to dupe over 3.5 million investors worldwide of approximately $4 billion. However, OneCoin did not actually exist on any blockchain and was in fact a pyramid scheme. Greenwood, who received 5% of monthly sales as OneCoin's "global master distributor", helped engineer the scam. He pled guilty to wire fraud and money laundering charges last year. The court also ordered Greenwood to forfeit approximately $300 million, reflecting his illicit gains. OneCoin co-founder Ruja Ignatova remains at large with an FBI most wanted notice.
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