Web3đWednesday Buzz: Grayscale's Ethereum ETF, FTX Creditors' Cashback, SEC's Ripple Response, Coincheck's Nasdaq Aspiration
1. Grayscale retracts Ethereum Futures ETF application from SEC.
2. FTX creditors to receive 118% funds in cash, as per estate plan.
3. SEC concludes response in Ripple XRP case.
4. Coincheck's Nasdaq listing gains momentum, proposal filed with SEC
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In the ever-evolving landscape of cryptocurrency exchanges, FTX has recently made headlines with its proposal to repay creditors a staggering 118% of their claims in cash. This bold move, outlined in a new reorganization plan, signals a significant development in the ongoing saga of FTX's bankruptcy proceedings. Let's delve deeper into the details of this proposal and its potential implications for the cryptocurrency market and FTX stakeholders.
1. Grayscale retracts Ethereum Futures ETF application from SEC.
Grayscale, a prominent crypto asset manager, has decided to retract its application for an Ethereum futures exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC). Despite several delays in the review process since its initial filing in September 2023, Grayscale did not provide specific reasons for the withdrawal. Analysts speculate that the move might be strategic, aiming to challenge the SEC's differential treatment between Bitcoin futures and spot ETFs. Concerns arise over the uncertain fate of Ethereum spot ETFs amid regulatory scrutiny, especially after reports suggested that the SEC categorized Ethereum as a regulated security. This development reflects the complexities and challenges faced by crypto companies navigating regulatory frameworks in the pursuit of introducing innovative financial products to traditional markets. The crypto community awaits further insights into Grayscale's intentions and the implications for Ethereum ETFs.
Ryan Ozawa
2. FTX creditors to receive 118% funds in cash, as per estate plan.
In a groundbreaking move, bankrupt crypto exchange FTX unveils a reorganization plan promising 98% of creditors 118% of their claims in cash, pending Delaware court approval. This bold initiative, filed Tuesday, outlines a swift payout strategy, aiming to address long-standing concerns over fund accessibility. The plan exceeds prior estimates, demonstrating FTX's commitment to rectifying customer losses amidst market volatility. While the proposal awaits legal scrutiny, FTX highlights its exhaustive efforts to amass $14.5 to $16.3 billion in liquid assets, leveraging investments and asset sales. Despite former CEO Sam Bankman-Fried's sentencing for fraud, creditors remain vigilant, advocating for justice and transparency in the resolution process. The plan also outlines settlements with regulatory bodies, including the IRS and CFTC, signaling a comprehensive approach to resolving outstanding obligations. FTX's proactive stance reflects a pivotal moment in crypto finance, fostering hope for equitable restitution and regulatory compliance.
Cheyenne Ligon
3. SEC concludes response in Ripple XRP case.
SEC challenges Ripple's defense, advocating for injunctions despite Ripple's compliance claims post-lawsuit initiation. Ripple's assurances of behavioral changes post-lawsuit are contested by the SEC, emphasizing potential future breaches. Ripple's international and accredited investor sales defenses were refuted. The SEC maintains the necessity of injunctions to prevent future violations, while Ripple's Chief Legal Officer criticizes the SEC's approach, highlighting inconsistencies and expressing optimism for resolution. Anticipated final judgment expected by September. Ripple poised to introduce XRPL solutions to Japan via partnership with HashKey DX.
Amaka Nwaokocha
4. Coincheck's Nasdaq listing gains momentum, proposal filed with SEC
Coincheck and Thunder Bridge SPAC are advancing toward a Nasdaq listing, marking a significant milestone for crypto investors. The proposed merger aims to establish Coincheck Group N.V., subject to regulatory approvals and shareholders' consent. Despite previous setbacks, Monex Group, Coincheck's parent company, remains steadfast in its commitment to the endeavor. Originally scheduled for completion by July 2, 2023, the merger faced a one-year delay, attributed to a shareholders' meeting in June 2023. Under the agreement, Thunder Bridge plans to inject $237 million into the combined entity, with its President and CEO, Gary Simanson, slated to assume the CEO role. Monex will retain an 82% stake in the new entity, affirming its dedication to Coincheck's growth trajectory despite listing challenges.
As FTX's bankruptcy proceedings continue to unfold, the proposed reorganization plan offers a glimmer of hope for creditors and investors. With the potential for substantial repayments and resolutions to regulatory claims, stakeholders eagerly await the outcome of the upcoming hearing in June. However, the specter of former CEO Sam Bankman-Fried looms large, serving as a reminder of the challenges and controversies that have surrounded FTX's downfall. As the cryptocurrency industry navigates through these turbulent times, one thing remains certain: the resilience of the community in the face of adversity. Stay tuned for further updates on this unfolding story and its impact on the broader crypto ecosystem.
