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Bankrupt Crypto Exchange FTX Exploring Sales of Subsidiaries, CEO Reveals – Featured Bitcoin News

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Bankrupt cryptocurrency exchange FTX is exploring sales, recapitalizations, and other strategic transactions with respect to its solvent subsidiaries. The firm’s new CEO has instructed the FTX team “to prioritize the preservation of franchise value as best we can in these difficult circumstances.”

New FTX CEO Outlines Priorities

Cryptocurrency exchange FTX and approximately 101 affiliated companies announced Saturday that they are “launching a strategic review of their global assets to begin to maximize recoverable value for stakeholders.” The review is part of their Chapter 11 bankruptcy process.

The new FTX CEO, John J. Ray, III, who replaced Sam Bankman-Fried after the crypto exchange filed for bankruptcy on Nov. 11, explained:

Based on our review over the past week, we are pleased to learn that many regulated or licensed subsidiaries of FTX, within and outside of the United States, have solvent balance sheets, responsible management, and valuable franchises.

He explained that some financially attractive subsidiaries, such as Ledgerx and Embed Clearing, are not debtors in the chapter 11 cases while others are, including FTX Japan, Quoine, FTX Turkey, FTX EU, FTX Exchange FZE, and Zubr Exchange.

Ray revealed:

It will be a priority of ours in the coming weeks to explore sales, recapitalizations, or other strategic transactions with respect to these subsidiaries, and others that we identify as our work continues.

The executive added that he has instructed the team at FTX “to prioritize the preservation of franchise value as best we can in these difficult circumstances.”

In addition, FTX filed various motions with the bankruptcy court Saturday “seeking interim relief from the court that, if granted, would allow the operation of a new global cash management system and the ordinary course payment of critical vendors and vendors at foreign subsidiaries.”

One of the court filings shows that the crypto company asked for permission to pay critical vendors that are essential in keeping its operations functioning while it attempts to reorganize. The exchange said that without the requested court relief, its businesses will suffer “immediate and irreparable harm.” A hearing has been scheduled for Tuesday, Nov. 22.

Ray said last week after going through FTX records: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”

What do you think about FTX selling its businesses? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.




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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Uzbekistan Approves Rules for Issuance and Circulation of Crypto Assets – Regulation Bitcoin News

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The authority responsible for crypto oversight in Uzbekistan has determined the order of issuing and circulating digital assets in the country. The main reason behind the move is to establish a mechanism that would allow local companies to attract capital through coins and tokens.

Uzbekistan Government Sets Out to Regulate Digital Asset Investments

The National Agency of Perspective Projects (NAPP), under the President of Uzbekistan, has released a new regulation on the procedures for the issue, registration, and release in circulation of crypto assets in the Central Asian Nation.

The document provides basic legal definitions for crypto assets and makes distinction between the different types. It introduces requirements for crypto issuers, depositaries and custodians and determines their obligations, including those concerning relations with customers.

The authority has also approved rules for the establishment and maintaining of an electronic register of crypto assets and adopted accounting standards for the rights associated with them and those of their holders.

Crypto depositories will be responsible for providing services for the issuance, registration, circulation, and storage of crypto assets. Issuers can use them or other electronic platforms, the NAPP said, pointing out that the nominal value of the coins must be expressed only in the national fiat, the Uzbekistani som.

The agency emphasized that the issuance of unsecured tokens is prohibited. Using words such as “state,” “state-secured,” “state-supported,” “Uzbekistan,” “Uzbek,” “national,” and “som” in the names of the cryptos is banned. The regulator also clarified:

The main purpose of the adoption of this document is to create a new mechanism for business entities to attract investments and develop their activities by issuing and registering the issue of secured tokens.

The NAPP further warned against any unauthorized activities related to the circulation of crypto assets in the country or the use of services by providers that have not obtained a license to offer them. The same applies to firms involved in the mining of cryptocurrency.

Uzbekistan has been taking steps towards the comprehensive regulation of its crypto sector with several decrees signed by President Shavkat Mirziyoyev and resolutions by the National Agency of Perspective Projects. The country recently licensed two companies to provide exchange services.

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agency, capital, Circulation, Coins, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, Digital Assets, Investments, issuance, licenses, NAPP, Regulation, Regulations, regulator, Tokens, Uzbekistan, Uzbekistani, Uzbekistanis, watchdog

Do you think Uzbekistanis will benefit from the new regulations adopted by the country’s crypto watchdog? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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U.S. Data Foils Bitcoin Bulls’ Rally Attempt To Retake $17,000

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Bitcoin is retracing and might be at the end of the short-term bullish momentum; the macroeconomic data might have shifted once again against it. The cryptocurrency saw profits after weeks of trending to the downside, but the rally is losing steam. 

The number one crypto by market cap is moving sideways after the collapse of FTX pushed it below critical support. As of this writing, Bitcoin trades at $16,900. The BTC price has yet to reclaim that level at around $17,500. 

BTC’s price moved sideways after a major crash on the 4-hour chart. Source: BTCUSDT Tradingview

Bitcoin Continues The Struggle, A New Status Quo Is In The Making

Over the previous week, the market rushed to the upside on the back of a potential U.S. Federal Reserve (Fed) monetary policy pivot. The Fed Chair Jerome Powell hinted at a change in their strategy during a speech at the Brookings Institution. 

Powell spoke about moderation for the first time in months since hiking interest rates to slow down inflation. During this speech, the Fed Chair said:

Thus, it makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down. The time for moderating the pace of rate increases may come as soon as the December meeting.

Bitcoin, crypto, and legacy financial markets were trending to the downside due to this monetary policy. Powell speaking of moderation gave them room to rally, but today the U.S. posted data on its job sectors that killed the bullish sentiment in the market. 

The nonfarm payrolls and private payrolls came in hotter than expected. The market was expecting much lower results. The metrics recorded 263,000 and 221,000, respectively. This data hints at a strong jobs market, which contributes to inflation, and allows the Fed to keep hiking rates. 

Immediately after this data became public, the market began pricing in a higher probability of a 75-basis point (bps) hike in interest for December. Analyst Ted Talks Macro believes the previous week’s rally and subsequent price action could be part of a new status quo. 

The market might be stuck in a game of ping-pong, a game of frustration, between bullish and bearish forces. A strategy employed by the Fed to keep inflation in check without harming the economy. Ben Lilly, Co-Founder at analytics firm Jarvis Labs, said the following about the status quo in the markets in response to Ted’s thesis:

This process of bullish macro conditions, met shortly after with a reason to be hawkish (moving goalpost/expectations of FED action) is a level of uncertainty that is strategic. If things are stressing ever so slightly and rates need to settle… what’s your next option? This.

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South Korean judge dismisses arrest warrants for Terra co-founder Do Kwon’s former associates

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A judge with the Seoul Southern District Court has reportedly set aside arrest warrants for Terra co-founder Shin Hyun-seong along with those of 3 Terra investors and 4 developers.

According to an Dec. 3 report from South Korea’s Yonhap News Agency, Judge Hong Jin-Pyo said there was little risk of Shin or the Terra associates destroying evidence related to the case against the crypto firm, and dismissed warrants that the Seoul Southern District Prosecutors Office issued on Nov. 29. The report added that Terra co-founder Do Kwon, also facing legal action in South Korea for his role in the firm’s collapse, was unlikely to return to the country.

“The Seoul Southern District Court’s ruling on Dec. 3rd to reject South Korean prosecutors’ detention warrant requests for former Terraform Labs employees once again illustrates the unfounded nature of the prosecutors’ claims,” a Terra spokesperson said to Cointelegraph.

Authorities in South Korea arrested Terraform Labs’ head of business, Yoo Mo, in October, but Judge Hong dismissed the warrant in a similar manner within 48 hours, saying it was difficult to see the “necessity and significance” of the arrest. In contrast, Kwon was still the target of lawmakers and regulators, having his name added to Interpol’s Red Notice list and no longer holding a valid South Korean passport for international travel.

Related: South Korean prosecutors accuse Do Kwon of manipulating Terra’s price

Kwon has continued to be active on social media following the collapse of Terra despite many crypto users directly blaming him for their loss of funds and the events surrounding the current bear market. In September, the Terra co-founder said he was “making zero effort to hide” from authorities. He subsequently spoke with infamous hedge fund manager and pharmaceutical head Martin Shkreli on a Twitch podcast discussing FTX and life in prison.