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FTX plans to fully repay customers

Cryptocurrency exchange FTX said its restructuring plans did not include a “reboot” of the firm but focused on repaying customers in full.

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Cryptocurrency exchange FTX said its restructuring plans did not include a “reboot” of the firm but focused on repaying customers in full.

In a Jan. 31 hearing in United States Bankruptcy Court for the District of Delaware, FTX attorney Andy Dietderich from law firm Sullivan and Cromwell said the exchange could “cautiously predict” fully repaying users and creditors but added this was “an objective” and not a “guarantee.” He said that “after an exhaustive effort,” there was no plan to restart FTX — dubbed FTX 2.0 — in its current Chapter 11 bankruptcy plan.

“Based on our results to date and current projections, we anticipate filing a disclosure statement in February describing how customers and general unsecured creditors with allowed claims will eventually be paid in full,” said Dietderich. “No investor is ready to commit the needed capital to a restart of the offshore exchange, nor has a buyer emerged for that exchange as a going concern.”

Dietderich reiterated concerns that under former CEO Sam Bankman-Fried, FTX had kept poor financial and company records regarding assets and employees. The lawyer said that LedgerX — one of the only FTX arms claimed to be solvent when the firm filed for bankruptcy in November 2022 — had been a “horrible investment.”

Bankman-Fried was found guilty of seven felony counts related to fraud at FTX and Alameda Research in November 2023. His sentencing hearing is scheduled for March 28. At roughly the same time as Dietderich’s announcement, FTX Token’s (FTT) price surged more than 12% from $2.67 to $3.01 before falling to $2.24.

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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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