BlockFi, a cryptocurrency lending platform, has exited bankruptcy and is now set to repay some of its creditors after facing financial troubles during the 2022 cryptocurrency bear market. According to an October 24 blog post, BlockFi has resumed withdrawals for most wallet customers. It also stated that customers with BlockFi interest accounts would be able to withdraw some of their assets in early 2024. With its bankruptcy behind it, BlockFi now has the opportunity to seek the recovery of assets from other companies it believes owe it money, including entities like Three Arrows Capital and FTX. The extent of funds available for repayment will depend on various factors, including BlockFi's success in recovering assets from FTX through bankruptcy proceedings.
Meanwhile, FTX has successfully recovered approximately $7 billion in assets, including cryptocurrencies, following the revelation that FTX debtors, including FTX and its affiliates, had misappropriated an estimated $8.7 billion from customers. Notably, BlockFi had lent over $650 million to FTX, making it one of the largest creditors of the exchange. The resolution of BlockFi's bankruptcy is closely tied to FTX's ability to recoup assets and address its financial challenges. FTX is exploring various options for its future, including the sale of the entire exchange, potential partnerships, or even an independent comeback.
In other cryptocurrency news, the iShares spot Bitcoin exchange-traded fund (ETF) proposal from investment giant BlackRock has been listed with the U.S. Securities and Exchange Commission (SEC), a critical step in the ETF approval process. According to ETF analyst Eric Balchunas, this marks the first spot ETF to be listed with the Depository Trust & Clearing Corporation (DTCC), a significant development in the quest to bring cryptocurrency ETFs to the market. The DTCC listing suggests that BlackRock may be closer to receiving SEC approval for the ETF, with a decision expected by January 10, 2024.
Lastly, Worldcoin, a project focused on using eye scans for payments, is making changes to its rewards system. It will transition from paying Orb operators (those who scan people's eyes) with USD Coin (USDC) to using its native WorldCoin (WLD) token. This change will be implemented in most jurisdictions, and it's part of a "transitional phase" following the project's launch in July. The move is intended to align with Worldcoin's native token and phase out the use of USDC. The total supply of WLD tokens has grown significantly since the project's launch, from around 100 to approximately 134 million tokens, indicating an expansion of its ecosystem.
These developments demonstrate the ongoing changes and innovations within the cryptocurrency industry, as companies adapt to market conditions and regulations while exploring new possibilities for their services.
