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BlockFi returns from bankruptcy and opens wallet withdrawals

Crypto lending platform BlockFi has emerged from bankruptcy and is ready to pay back some of its creditors, according to an Oct. 24 blog post. Withdrawals “are currently available to nearly all Wallet customers,” the post stated, adding that BlockFi Interest Account (BIA) and Loan customers will be able to withdraw some assets in early 2024.

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Crypto lending platform BlockFi has emerged from bankruptcy and is ready to pay back some of its creditors, according to an Oct. 24 blog post. Withdrawals “are currently available to nearly all Wallet customers,” the post stated, adding that BlockFi Interest Account (BIA) and Loan customers will be able to withdraw some assets in early 2024.

According to the post, BlockFi’s emergence from bankruptcy means that it can now attempt to recover assets from other firms it believes owe it money. This includes bankrupt crypto platforms such as Three Arrows Capital (also known as “3AC”) and FTX. The firm will also be able to continue distributing assets to its creditors and processing claims.

The team instructed Wallet customers with assets on BlockFi to log in to the app and submit a withdrawal request, which will allow the team to process the withdrawal. As for BIA and Loan customers, BlockFi said it’s preparing for initial distributions in accordance with the bankruptcy plan. They expect the first distributions to be made in early 2024. Further distributions will be made after this point, but the amount of distributed funds will depend on BlockFi’s success in FTX bankruptcy litigation, among other factors.

BlockFi was a crypto lending platform that first ran into liquidity problems in mid-2022 as Terra’s stablecoin collapsed. At the time, FTX rescued the platform with a $400-million credit line. FTX subsequently went bankrupt in November, taking down BlockFi with it. On Aug. 17, a United States court ordered that BlockFi be allowed to repay U.S.-based Wallet customers, as a plan to wind down the company and repay creditors had been approved by the bankruptcy court. However, the court did not allow U.S. customers to withdraw at that time. The current BlockFi Wallet withdrawal FAQ contains an update stating that international users are now allowed to withdraw.

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Bitcoin price risks drop to $71K as Trump tariffs hurt US business outlook

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Bitcoin is setting its sights on the $71,000 mark as market conditions shift in response to geopolitical and economic developments, including a new tariff agreement and weakening U.S. business sentiment.

Recent market activity suggests that Bitcoin is benefiting from concerns over traditional economic indicators, with investors turning to digital assets as a hedge against economic uncertainty. A rare slump in U.S. business outlook has fueled speculation that risk assets, including Bitcoin, could see increased inflows.

Additionally, ongoing global trade negotiations and tariff adjustments have contributed to market volatility, prompting investors to seek alternative stores of value. Analysts suggest that if macroeconomic pressures persist, Bitcoin could continue its upward trajectory, potentially testing the $71,000 resistance level.

Despite short-term fluctuations, Bitcoin remains a focal point for investors navigating inflation concerns, regulatory shifts, and global economic trends. The coming weeks will be critical in determining whether Bitcoin can sustain its momentum and break through key price barriers.

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Crypto donations top $1B in 2024, gain traction after Myanmar, Thailand quake

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Changpeng “CZ” Zhao, the former CEO of Binance, has donated 1,000 BNB to aid relief efforts following a powerful earthquake that struck the Thailand-Myanmar border region. The donation, valued at approximately $600,000, aims to support those affected by the disaster and assist in recovery operations.

The earthquake caused significant damage in several areas, displacing residents and impacting local infrastructure. CZ’s contribution highlights the growing role of cryptocurrency in humanitarian aid, providing fast and transparent relief funding.

The donation will be distributed to organizations working on the ground to deliver emergency assistance, including shelter, food, and medical supplies. Crypto-based aid is increasingly being utilized in disaster response efforts due to its efficiency in reaching affected communities without the delays of traditional banking systems.

As the affected regions begin the recovery process, the crypto community continues to demonstrate how blockchain technology can play a meaningful role in global humanitarian initiatives.

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Hackers are selling counterfeit phones with crypto-stealing malware

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Security researchers have uncovered a wave of counterfeit Android devices preloaded with malware designed to steal cryptocurrency, posing a significant threat to users worldwide. The infected devices, which mimic popular smartphone brands, contain malicious software capable of hijacking digital wallets and siphoning funds.

The malware, embedded at the firmware level, allows attackers to gain remote access, intercept sensitive data, and execute unauthorized transactions. Because the malicious code is deeply integrated into the device’s operating system, it is difficult to detect and remove, making it a persistent threat.

Cybersecurity experts warn that unsuspecting buyers may unknowingly expose their crypto holdings to risk by purchasing these compromised devices from unverified sellers. Users are urged to exercise caution by only purchasing smartphones from trusted retailers and manufacturers.

The discovery highlights the growing sophistication of cybercriminals targeting the cryptocurrency sector. As mobile-based crypto transactions become more common, security measures such as hardware wallet usage and multi-factor authentication are increasingly essential to safeguard digital assets from emerging threats.

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