FTX creditors list, BlockFi $1.2B exposure and new Celsius token…

Top Stories This Week

FTX creditor list shows airlines, charities and tech firms caught in collapse

The complete list of creditors owed money by the bankrupt cryptocurrency exchange FTX has been released, revealing a wide range of global companies. Among the potential creditors are airlines, hotels, charities, banks, venture capital companies, media outlets and crypto companies, along with United States and international government agencies. According to another headline regarding the FTX scandal, U.S. federal prosecutors allege that Sam Bankman-Fried invested $400 million in the venture capital firm Modulo Capital with money from the FTX’s customers. Investigators allege that Modulo was likely built with criminal proceeds or misappropriated funds. Lawyer costs in the case are estimated to reach hundreds of millions of dollars before the firm’s bankruptcy investigation is over.

BlockFi uncensored financials reportedly shows $1.2B FTX exposure

Bankrupt crypto lending firm BlockFi uploaded uncensored financials by mistake, revealing $1.2 billion in assets tied up with bankrupt exchange FTX and defunct trading firm Alameda Research. The unredacted filings show that, as of Jan. 14, BlockFi had $415.9 million worth of assets linked to FTX and a whopping $831.3 million in loans to Alameda. BlockFi filed for Chapter 11 bankruptcy on Nov. 28, citing the collapse of FTX just weeks earlier as the cause of its financial troubles.

New ‘Celsius token’ may be used to repay creditors

Bankrupt crypto lending firm Celsius may issue its own token to repay creditors. In a court hearing, Celsius attorney Ross M. Kwasteniet said the firm is negotiating with its creditors on how to relaunch the platform and adequately pay them back. If approved by creditors and the court, the relaunched version would be “a publicly-traded company that is properly licensed,” which is expected to provide creditors with more money than by simply liquidating  the company.

Binance holds token collateral and user funds on same wallet by ‘mistake’

Cryptocurrency exchange Binance admitted to mistakenly storing some customer funds in the same wallet with its collateral for Binance-minted tokens, or B-Tokens. The exchange already started the process of transferring the assets to dedicated collateral wallets, and stressed that B-Tokens are always fully collateralized and backed 1:1. Binance previously said that its corporate holdings were recorded in separate accounts and should not form part of the proof-of-reserves calculations.

Genesis creditors file securities lawsuit against Barry Silbert and DCG

Crypto conglomerate Digital Currency Group (DCG) is facing more legal issues following the filing of a new class action lawsuit against its subsidiary Genesis Capital. A group of Genesis creditors filed a lawsuit against DCG and its CEO Barry Silbert, alleging violations of securities laws by executing lending agreements with securities without qualifying for an exemption from registration under the federal laws. Genesis filed for Chapter 11 bankruptcy on Jan. 19, and it expects to emerge from the proceedings by May.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $23,129, Ether (ETH) at $1,600 and XRP at $0.41. The total market cap is at $1.06 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Threshold (T) at 115.05%, Aptos (APT) at 86.22% and dYdX (DYDX) at 64.91%.

The top three altcoin losers of the week are Hedera (HBAR) at -7.72%, Decentraland (MANA) at -7.71% and Maker (MKR) at -5.77%.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“With the help of blockchain technology, we can achieve medical advances so powerful and undeniable that existing systems will have no choice but to change.”

Keith Comito, co-founder and president of Lifespan.io

“It’s very early days, but we continue to…