As a seasoned crypto investor with years of experience navigating the volatile and complex world of digital assets, I can’t help but feel a mix of emotions upon reading about Alameda Research’s latest attempt to recover funds from Crypto.com. While I’ve grown accustomed to the ups and downs of this industry, it seems that each new development in the FTX saga manages to surprise even the most hardened investors.
Alameda Research, linked to the collapsed cryptocurrency exchange FTX and involved in its bankruptcy proceedings, aims to retrieve over $11 million deposited in a Crypto.com account as far back as 2022.
On November 7th, Alameda submitted a claim in the U.S. Bankruptcy Court for the District of Delaware, aiming to retrieve at least $11.4 million worth of assets from a Crypto.com account managed by the company. The company asked the court to issue an order compelling Crypto.com to transfer these significant assets (not of insignificant value) to the debtors’ possession.
As per Alameda’s claim, the company had previously opened an account named Ka Yu Tin prior to FTX filing for bankruptcy in 2022. However, after FTX initiated Chapter 11 proceedings, Alameda accused Crypto.com of locking the account and refusing to collaborate with their requests. Furthermore, they alleged that Crypto.com has unjustifiably withheld property belonging to the Debtors.
Significantly, the submitted documents contained a declaration from Caroline Ellison, a former CEO of Alameda, who is currently imprisoned in Connecticut for her part in FTX’s misuse of client funds. This statement, made on November 1 before she was apprehended by authorities, asserted that the $11.4 million in the account belonged to Alameda.
“In the FTX bankruptcy case, one of the recent attempts by involved parties is aimed at retrieving funds that are currently blocked or immobilized in other cryptocurrency exchanges. For instance, Alameda filed a complaint against KuCoin in October to recover around $50 million worth of assets that were frozen because of ‘suspicious activities’ they identified.
Bankruptcy and criminal cases winding down
In November 2022, FTX and its associated companies sought protection under bankruptcy laws, causing concern among investors and creditors over whether the company had sufficient resources to compensate them fully. After about two years in bankruptcy proceedings, a judge endorsed a plan that would see FTX debtors repay approximately 98% of users, with their total payout being around 119% of the stated account value.
The plan estimated reimbursement based on the price of crypto assets at the time of bankruptcy in 2022, ignoring potential gains in Bitcoin (BTC) and others. It’s unclear exactly when the debtors will begin reimbursing FTX users.
Three top officials connected with FTX and Alameda who have already been incarcerated are Ellison, ex-CEO Sam Bankman-Fried, and former joint CEO of FTX Digital Markets Ryan Salame. Nishad Singh, the previous engineering director of the exchange, received a sentence equivalent to time served. Gary Wang, co-founder of FTX, is set for sentencing on November 20th.
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2024-11-09 00:43