Crypto exchange bankruptcy: FTX proposes a plan to return up to 90% of creditor holdings
In the aftermath of the recent crypto exchange bankruptcy, FTX has proposed a plan to return up to 90% of creditor holdings. The plan is set to be filed with a U.S. bankruptcy court by December 16. Customers with a preference settlement of less than $250,000 can accept the settlement without any reduction of claim or payment. Creditors would also receive a “Shortfall Claim” against the general pool corresponding to the estimated value of missing assets. However, there are potential obstacles to the recovery process, such as taxes, government claims, and token price fluctuations.
Binance experiences temporary disadvantage compared to Kraken and Coinbase
The world’s largest cryptocurrency exchange, Binance, faced a temporary disadvantage compared to Kraken and Coinbase on Monday. The buy-side liquidity on Binance dropped significantly due to increased volatility caused by a false report about BlackRock’s spot ETF approval. Bitcoin’s price briefly surged in response to the rumor, but later retraced its gains after BlackRock denied the report.
California Governor signs crypto licensing bill into law
On Friday, California Governor Gavin Newsom signed a crypto licensing bill into law. The Digital Financial Assets Law, considered California’s version of New York’s “BitLicense,” has faced criticism from the industry. The law requires the Department of Financial Protection and Innovation to establish a regulatory framework for the crypto sector, including a licensing regime. The department will have enforcement and rulemaking authority over the industry.
24-hour change in trading volume in bitcoin options
The chart of the day shows the 24-hour change in trading volume in bitcoin options at various strike prices. The call option at the $30,000 strike had the highest trading volume in the past 24 hours, likely due to traders taking a bullish stance following the spot ETF approval rumor.
In conclusion, the crypto exchange bankruptcy has led FTX to propose a plan to return up to 90% of creditor holdings. The plan will be filed with a U.S. bankruptcy court by December 16, and customers with a preference settlement of less than $250,000 can accept the settlement without any reduction of claim or payment. Despite potential obstacles to the recovery process, such as taxes, government claims, and token price fluctuations, this plan aims to provide relief to creditors.
Meanwhile, Binance experienced a temporary disadvantage compared to Kraken and Coinbase due to increased volatility caused by a false report about BlackRock’s spot ETF approval. The buy-side liquidity on Binance dropped significantly, but the situation has since stabilized.
Additionally, California Governor Gavin Newsom signed a crypto licensing bill into law, which has faced criticism from the industry. The Digital Financial Assets Law requires the Department of Financial Protection and Innovation to establish a regulatory framework for the crypto sector, including a licensing regime.
Finally, the 24-hour change in trading volume in bitcoin options at various strike prices shows that the call option at the $30,000 strike had the highest trading volume. This is likely due to traders taking a bullish stance following the spot ETF approval rumor. As the crypto market continues to evolve, it is crucial for investors and traders to stay informed about the latest developments and trends.
