Russian President Vladimir Putin recently announced that the BRICS bloc aims to establish an independent payment system, free from political pressure and external interference. Putin stated that the addition of new members has increased BRICS’ share of global GDP to 36% and its share of the global population to 45%. Putin Announces BRICS Open to […]
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Independent Presidential Candidate Robert F. Kennedy Jr. Joins Consensus as a Headline Speaker
PRESS RELEASE. May 7, 2024, Austin, TX – In less than four weeks, independent presidential candidate Robert F. Kennedy Jr. will take the stage in Austin, TX, at Consensus 2024, the world’s largest, longest-running, and most influential gathering that brings together all sides of the crypto and Web3 community. As an environmental lawyer, scion of […]
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Behind MDC Walls — Independent Reporter Captures Photo of Sam Bankman-Fried’s New Reality
This week, a prison snapshot featuring Sam Bankman-Fried (SBF), the ex-FTX chief, was released by the independent journalist Tiffany Fong. Capturing the first glimpse of SBF since his detention, the image places the once-prominent cryptocurrency magnate alongside five other detainees within the confines of the Metropolitan Detention Center (MDC) in Brooklyn. First Look: SBF Behind […]
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FTX Under New Scrutiny: Appellate Court Orders Independent Investigation
An independent examiner was initially barred from delving into the FTX bankruptcy case. However, the Third Circuit Court of Appeals in Philadelphia has recently overturned this decision, mandating that the defunct crypto exchange undergo an investigation by an external party. This ruling points out that such an inquiry may intensify oversight and inform prospective investors about the inner workings of these types of operations.
Court Mandates External Probe into FTX, Highlighting Potential Crypto Market Risks
The U.S. government has expressed a strong desire for an independent examination of the FTX debacle. When U.S. trustee Andrew Vara, overseeing the case, requested a third-party investigation, Judge John Dorsey rejected the plea. Consequently, the government escalated the matter to the Appellate Court, seeking to reverse this decision. Ultimately, the trustee’s efforts proved successful, achieving the sought-after objective.
The Third Circuit Court of Appeals in Philadelphia, in a verdict announced on Friday, now requires a court-appointed independent examiner to scrutinize the business and bankruptcy issues, ensuring that this party holds no ties with the debtors. The ruling raises concerns about FTX Group’s development of FTT and the manner in which FTX, along with its quantitative trading desk, Alameda Research, escalated the value of the exchange token.
This situation might signal “potential investors to undisclosed credit risks in other cryptocurrency companies,” as detailed in the decision of the Philadelphia Appellate Court.
Vara initially suggested the court-appointed independent examiner a month following FTX’s bankruptcy filing. Yet, John Ray III, the current CEO and restructuring leader of FTX, resisted this proposal. In February 2023, Judge Dorsey aligned with the debtors, rejecting the idea of a third-party examination.
The decision from the Philadelphia court indicates that an investigation conducted solely by the estate and its attorneys falls short of adequacy. This latest directive might hinder the estate’s current reorganization strategy, which intended to compensate customers based on the value of their crypto assets as of Nov. 11, 2022.
What do you think about the judge deciding that an independant examiner is needed for the FTX bankruptcy case? Share your thoughts and opinions about this subject in the comments section below.
NFT-Based Firm Remilia Corporation Sues Independent Contractors Accused of Siphoning $1 Million
Remilia Corporation, a digital art and non-fungible token (NFT)-related business, has filed a lawsuit against three independent contractors whom it accuses of siphoning million from the company. Founder Krishna Okhandiar denied claims the three had at any point “sought equity shares in Remilia while negotiating their contracts.”
Trio ‘Failed to Perform at an Adequate Level’
Remilia Corporation, a digital art and non-fungible token (NFT)-related business, has filed a lawsuit against three individuals accused of illegally taking control of the company’s revenues. In the lawsuit filed with the U.S. District Court of Nevada, Remilia and founder Krishna Okhandiar allege that John Duff, Henry Smith, and Maxwell Roux acted illegally when they allegedly took control of million belonging to the business.
Good morning. A developer who worked on Bonkler took steps that allowed him to divert ~MM USD in Remilia’s generated fees.
The Bonkler reserves, main contract and NFTs are safe; only Remilia’s revenue from Bonkler was compromised.
We’ve temporarily paused Bonkler’s daily mint… pic.twitter.com/1QOQDiXka3
— ♡ Charlotte Fang
Crown Prince (@CharlotteFang77) September 11, 2023
In addition, the company and its founder denied that the three, who worked as independent contractors, had “sought equity shares in Remilia while negotiating their contracts.” Instead, Remilia asserts that the three were assigned managerial roles that “each failed to perform at an adequate level.” The trio’s poor performance culminated in their demotion, the lawsuit said.
‘Serious Miscalculations’
Commenting on the legal steps that the company has taken to recover lost funds, Okhandiar, who goes by the name Charlotte Fang on X (formerly Twitter), said Remilia has since “temporarily paused Bonkler’s daily mint.” The founder also explained how the trio orchestrated the conspiracy and why this ultimately failed.
“The developer also seized codebases and coordinated with two others on the team in an attempt to seize control of our social media, followed by demands for a significant portion of our treasury, including the NFT reserves. However, some serious miscalculations were made—we easily identified the individuals involved and will pursue them to the fullest extent of the law. We expect all our property to be returned,” Charlotte Fang wrote on X.
The founder added that Remilia’s reserves were not affected and that users’ assets remain secure. Okhandiar, however, acknowledged that Remilia has lost control of three social media accounts and said users should now avoid using these.
Meanwhile, in the lawsuit filed on Sept. 11, Remilia and Okhandiar said they are seeking the court’s favorable judgment on 11 charges being leveled against Duff, Smith, and Roux.
What are your thoughts on this story? Let us know what you think in the comments section below.
Ethena Raises $6.5 Million to Develop an Ethereum-Based, Banking System Independent Stablecoin
Ethena, a protocol that seeks to build a banking system independent stablecoin, has announced that it has raised .5 million in its seed round. The round, led by Dragonfly, aims to help issue Ethena’s decentralized stablecoin product in Q3 2023, which was inspired by an article written by former Bitmex CEO Arthur Hayes.
Stablecoin Protocol Ethena Raises .5 Million in Seed Funding Round
Ethena, an Ethereum stablecoin protocol, has raised .5 million in its seed round. The funding round led by Dragonfly Capital also had the participation of former Bitmex CEO Arthur Hayes and some derivatives exchanges such as Deribit, Bybit, Okx, Gemini, and Huobi. Ethena’s goal is to bring to fruition a stablecoin that has no connection with the traditional financial system.
The protocol was inspired by the “Dust on Crust” Arthur Hayes article, where he explains how a stablecoin can be constructed using delta-neutral techniques, derivatives, and onchain collateral. Ethena uses the concept of the “Nakadollar,” which Hayes proposed using Bitcoin, and applies it to Ethereum instead, looking to turn this cryptocurrency “into the first crypto-native yield-bearing stablecoin which is not reliant on the banking system.”
To Ethena, this stablecoin has a potential market of more than 130 billion, given that they view their permissionless savings return product as “the largest market opportunity that crypto can provide for the world.”
Usde and the Internet Bonds
Ethena projects to issue their financial instruments in two phases. The first one includes the rollout of usde, an on-chain collateral derivatives-based stablecoin product, estimated to be available by Q3 2023, using the funds raised during this round.
A later phase will include issuing what Ethena calls the internet bond. The internet bond is projected to behave as a traditional U.S. treasury without being linked to any central bank or financial institution, building on staked Ethereum deposits and usde, developing “the first globally accessible and permissionless crypto savings instrument.”
Dragonfly general partner Tom Schmidt reinforced the relevance of a truly decentralized, stable, and capital-efficient stablecoin product due to the growth of the usage of stablecoins around the world for savings and remittance-related uses.
Schmidt stated:
Ethena has a breakthrough design that remedies these issues while also benefiting a broad user-base. We’re thrilled to be partnering with them to bring their vision to life.
What do you think about Ethena and its goal of creating a banking system independent stablecoin? Tell us in the comments section below.
US Government Presses for Independent Examiner in FTX Bankruptcy Case
Following the U.S. bankruptcy court judge’s rejection of the U.S. Trustee’s plea to designate an impartial investigator for the FTX bankruptcy case, the government is now appealing this verdict. In essence, the U.S. Trustee’s appeal has been forwarded to the U.S. Third Circuit Court of Appeals, and chief judge Colm F. Connolly acknowledged that he is compelled to comply with the Trustee’s request.
U.S. Trustee Drives for Independent Examiner in FTX Bankruptcy Proceedings With Third Circuit Appeals Motion
The U.S. government, particularly the Department of Justice-appointed U.S. Trustee designated to the FTX bankruptcy case wants an independent examiner assigned to the proceedings. Last December, an attorney for the U.S. Trustee submitted a written letter to the court insisting that an impartial examiner is needed. Additionally, a small group of bipartisan U.S. senators have also stressed that an independent investigator should be assigned to the FTX case.
The U.S. senators who wrote the letter asking for an inquiry included Cynthia Lummis (R-WY), Thom Tillis (R-NC), Elizabeth Warren (D-MA), and John Hickenlooper (D-CO). However, the team managing FTX has estimated a separate examiner could cost the estate roughly 0 million in expenses. Then during the first week of February 2023, judge John Dorsey delayed his decision to appoint an examiner, and a week later he denied the U.S. Trustee’s request.
In the court filing registered on May 30, chief judge Connolly said “I have no choice but to grant the Trustee’s motion” after appellant Andrew Vara filed the motion. “No one contests that the Trustee requested an examiner here or that the debtor’s fixed, liquidated, unsecured debts, other than debts for goods, services, or taxes, or owing to an insider, exceed million,” the judge stated.
Judge Connolly added:
The only issue is whether, given those facts, the bankruptcy court could lawfully reject the Trustee’s request for the appointment of an examiner.
Judge Connolly further decided that the court will issue an order in accordance with this memorandum opinion. He also stated that the evaluation of the appeal’s merits will be suspended until the Third Circuit delivers a ruling. It’s been approximately 200 days since Sam Bankman-Fried’s FTX filed for Chapter 11 bankruptcy protection in November 2022.
What are your thoughts on the U.S. government’s relentless pursuit of an independent examiner in the FTX Bankruptcy Case? Share your opinions and insights in the comments section below.
Russia Involved in De-Dollarization Talks With the Islamic World to Create Independent Financial System
Russia and the Islamic world are currently discussing how to deepen the de-dollarization agenda to create a new financial system. According to statements from Russian Deputy Prime Minister Alexey Overchuk, these topics are inscribed in broader deglobalization talks, and the Russian government is invested in developing these issues with Islamic countries.
Russia Talks De-Dollarization With Islamic Nations
Russia is veering to the east in order to build a less polarized world and is currently involved in talks about de-dollarization and the construction of a new financial system away from the dominance of the traditional hegemonies. According to Russian Deputy Prime Minister Alexey Overchuk, the Russian Federation is currently in broad talks with the Islamic world that include these subjects and other related topics.
During the international economic forum Russia-Islamic World: KazanForum, Overchuk stated:
Our relations with the countries of the Islamic world cannot but be influenced by the global shifts that are taking place and the global trends. We are talking about processes of de-dollarization and the creation of an independent financial system.
In this sense, Russia has been recently seeking the construction of an alternative financial system to let them transact with other countries without relying on SWIFT, the global banking linking system, and the U.S. dollar, as the Group of the Seven (G7) intends to further restrict Russian access to the financial system.
Deglobalization on the Table
However, these talks are not limited to the previously mentioned topics but are merely inscribed into more comprehensive subjects that include deglobalization and how to deal with the changing trends in how investments are moving in the countries in the current geopolitical context.
Overchuk explained he was positive about the outcome of these talks, remarking on the common problems that Russia and these countries are facing. Overchuk declared:
This broader agenda and how it affects countries and relationships enables us to see that relations between Russia and the Islamic states have a very large and very positive future. The government is doing a lot to ensure further development along these lines.
Russia has recently narrowed its relations with Iran, announcing the construction of the Rasht-Astara railway, a route prompted as a rival to the Suez Canal that would connect India, Iran, Russia, Azerbaijan, and other countries part of the Islamic world with 162 km of railway.
What do you think about the de-dollarization and deglobalization talks that the Russian Federation is conducting with Islamic countries? Tell us in the comment section below.
FTX Bankruptcy Judge Denies US Trustee’s Request for Independent Examiner
The judge presiding over the FTX bankruptcy case has denied the U.S. Trustee’s request to appoint an independent examiner for the ongoing proceedings. The decision comes after judge John Dorsey postponed the ruling last week, citing concerns that the examiner could cost creditors tens of millions of dollars.
The U.S. Trustee’s Argument for an Independent Examiner Ultimately Overruled by the Court’s Authority
In the latest filing in the FTX bankruptcy case docket, judge John Dorsey has denied the appointment of an independent examiner. Dorsey stated that the current team, led by FTX CEO John J. Ray III, is “highly qualified” to handle the bankruptcy proceedings independently. The decision overrides the U.S. Trustee’s request to hire an independent examiner, which was said to be mandated by Congress.
The judge presiding over the FTX bankruptcy case stressed, however, that he had “no doubt that appointing an examiner would not be in the best interest of the creditors.” According to estimates, current management claimed that expenses for an independent examiner could reach between million and 0 million. “Every dollar spent on administrative expenses in these cases is less for the creditors,” Dorsey stated during the hearing, agreeing that an examiner could be very costly.
Since Dec. 1, 2022, an attorney for the U.S. Trustee, an arm of the U.S. Department of Justice (DOJ), has been attempting to appoint an examiner to the FTX case in the Delaware bankruptcy court. During the case, a representative for the Trustee argued that the appointment of an independent examiner was mandated by Congress and no longer within Dorsey’s authority.
The Trustee’s argument was supported by a letter from four bipartisan U.S. senators insisting that an independent examiner be appointed. However, the decision by the Delaware bankruptcy judge emphasizes that his court’s authority has overruled the government’s request.
What are your thoughts on the judge’s decision to deny the U.S. Trustee’s request for an independent examiner in the FTX bankruptcy case? Let us know in the comments section below.
FTX Bankruptcy: Judge Delays Decision on Appointing Independent Examiner Amid Cost Concerns
Judge John Dorsey has delayed his decision on whether to appoint an independent examiner in the FTX case. At the latest hearing, Dorsey acknowledged that the cost to debtors could reach tens of millions of dollars. Currently, the bankruptcy judge is hopeful that the issue will be resolved through a mutually agreed upon solution between both parties. A representative for the U.S. Department of Justice’s Trustee contended, however, that the appointment of an independent examiner was mandated by Congress and no longer within Dorsey’s authority.
FTX Bankruptcy Hearing Highlights Cost Concerns and Calls for Impartiality
Three days ago, Bitcoin.com News reported on the U.S. Trustee in the FTX bankruptcy case and the government’s request to appoint an independent examiner. At the latest hearing, FTX’s lawyers from Sullivan & Cromwell argued that the endeavor could be costly.
John J. Ray III, FTX’s new CEO, estimated that expenses could reach between million and 0 million. James Bromley of Sullivan & Cromwell said, “It’s just going to result in duplicated effort and a significant amount of expense. We don’t have enough money to pay back all of our creditors.”
Bromley maintained that there is “no evidence” that any outside professionals would be more impartial than FTX’s current experts. FTX debtors have a number of experts working on the case including the cybersecurity firm Sygnia. FTX’s executives and legal teams are collaborating with criminal investigators and top government regulators.
Ray, FTX’s new CEO, earned roughly 0,000 for his work last year and continued to work during Christmas and the holiday season. Juliet Sarkessian, representing the U.S. Trustee, characterized the FTX situation as a “dumpster fire” and emphasized that the appointment of an examiner was mandated by Congress in these circumstances.
Sarkessian’s comments align with the letter sent to the court by senators Cynthia Lummis (R-WY), Thom Tillis (R-NC), Elizabeth Warren (D-MA), and John Hickenlooper (D-CO). The senators urged the court to appoint an independent examiner, emphasizing that numerous questions “remain unanswered.” Sarkessian believes that an examiner may uncover information that would not be discovered otherwise and could reveal any wrongdoing by specific FTX employees.
During his testimony, FTX CEO Ray described the bankruptcy as “pure hell” when he listed his expenses from 2022. He also noted that FTX was unlike anything he had ever encountered and that former FTX executives did not maintain “a single list of anything.”
What are your thoughts on the ongoing FTX bankruptcy case and the potential appointment of an independent examiner? Share your insights in the comments section below.