🚨🚨Crypto Market News You Can’t Miss! (26/12/23) 🚨🚨

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28 Dec 2023

The crypto world is always full of surprises and developments. In this article, we will cover three of the most important and interesting news stories that happened in the past week. These are:

Mt. Gox starts paying back some of its creditors via PayPal
FTX debtors reach a separate deal with Sam Bankman-Fried over Embed acquisition
zkSync network goes down for 5 hours on Christmas Day but is back online

These news stories have significant implications for the crypto industry and its participants. Let’s dive into each one of them and see what they mean.

Mt. Gox Starts Paying Back Some of Its Creditors Via PayPal 💰

Mt. Gox was once the largest and most popular Bitcoin exchange in the world. However, in February 2014, it announced that it had lost 850,000 bitcoins, worth about $450 million at the time, due to a hack. This caused a huge shock and panic in the crypto community, and many people lost their funds and trust in the exchange. Since then, Mt. Gox has been undergoing a long and complex bankruptcy process, with thousands of creditors waiting for their money back.
Recently, some of these creditors have reported that they have received partial repayments in Japanese Yen through PayPal. This is a surprising and welcome development, as it shows that Mt. Gox is finally making some progress in returning the funds to its users. However, the repayments are not complete, and only cover a fraction of the total amount owed. According to Mt. Gox’s repayment plan, the creditors will receive their money in several stages, including the base repayment, the early lump-sum repayment, and the intermediate repayment.
This news is a positive sign for the Mt. Gox creditors, who have been waiting for almost a decade for their money back. However, it is still unclear when they will receive the full amount, and whether they will get any of their bitcoins back. The Mt. Gox saga is not over yet, and there are still many legal and technical challenges to overcome.

Source (https://www.theblock.co/post/269212/mt-gox-reportedly-starts-repaying-some-creditors-via-paypal)

FTX Debtors Reach a Separate Deal With Sam Bankman-Fried Over Embed Acquisition ⚖️

FTX was another prominent and successful crypto exchange, founded and led by Sam Bankman-Fried, also known as SBF. However, in July 2022, FTX announced that it was shutting down its operations, citing regulatory pressure and operational difficulties. This left many of its users and investors in a limbo, as they were unsure of the fate of their funds and assets. FTX then filed for bankruptcy in the United States, and a legal battle ensued between the debtors and the creditors.
One of the main points of contention was the acquisition of Embed, a stock-clearing platform, by FTX US, the American subsidiary of FTX, in June 2022. FTX US paid $220 million for Embed, and issued two simple agreements for future equity (SAFEs) to SBF, giving him the right to buy a number of shares in the crypto hedge fund Alameda Research, which he also founded and runs. The debtors claimed that this deal was unfair and fraudulent, and that SBF should return the money and the assets to the FTX estate.
On Dec. 22, 2023, the debtors announced that they have reached a separate settlement with SBF, regarding the Embed acquisition. According to the agreement, SBF will give up his right to the assets held in his name at Embed, and transfer them to the debtors. He will also forfeit his right to the SAFEs, and the value they conferred upon him. The debtors stated that this agreement is in the best interest of their estates, creditors and stakeholders, and that it will recover 100% of the value that SBF gained from the Embed deal.
This news is a major breakthrough in the FTX bankruptcy case, as it resolves one of the most contentious and complicated issues. It also shows that SBF is willing to cooperate and compromise with the debtors, and that he is not trying to evade his responsibilities or liabilities. However, there are still other aspects of the FTX bankruptcy that need to be addressed, such as the distribution of the remaining funds and assets, and the claims of the other creditors.

Source (https://cointelegraph.com/news/ftx-debtors-deal-sam-bankman-fried-embed)

zkSync Network Goes Down For 5 Hours on Christmas Day but Is Back Online 🥶

zkSync is a layer-2 scaling solution for Ethereum, based on zero-knowledge proofs. It aims to provide fast, cheap and secure transactions, without compromising on decentralization or security. zkSync claims to be able to process up to 20,000 transactions per second, with fees as low as $0.01 per transaction. zkSync is also compatible with Ethereum’s smart contracts, and supports various tokens and NFTs.
However, on Dec. 25, 2023, zkSync experienced a network outage, which lasted for about 5 hours. During this time, the network was unable to process any transactions, and the users were unable to access their funds or assets. The zkSync team explained that the outage was caused by a bug in the server, which triggered one of the network’s automated safety protocols. The team said that they had to inspect the network during the holiday, and fix the issue as soon as possible.
The zkSync network was restored to normal operation after 5 hours, and the team assured the users that their funds and assets were safe and secure. The team also apologized for the inconvenience and frustration caused by the outage, and thanked the users for their patience and support. The team said that they will conduct a thorough post-mortem analysis of the incident, and implement measures to prevent such occurrences in the future.
This news is a reminder of the challenges and risks involved in developing and maintaining layer-2 scaling solutions for Ethereum. While these solutions offer great benefits and potential, they also face technical and operational difficulties, and sometimes fail to deliver on their promises. The zkSync outage also shows the importance of having robust and reliable safety protocols, and a responsive and transparent team, to handle such situations and minimize the damage.

Source (https://cointelegraph.com/news/zksync-went-down-5-hours-christmas-day-now-back-online)

Conclusion

In this article, we have covered three of the most important and interesting news stories that happened in the crypto world in the past week. These stories have significant implications for the crypto industry and its participants, and reflect the dynamic and evolving nature of the crypto space. We hope that you have enjoyed reading this article, and that you have learned something new and useful. If you want to stay updated on the latest and greatest news and developments in the crypto world, make sure to follow me on Bulb, and subscribe to our newsletter. Thank you for reading, and happy holidays!

Disclaimer: The information and content provided in this article are for informational and educational purposes only and do not constitute any financial, investment, or legal advice. Trading, buying, or investing in cryptocurrencies involves significant risks and may result in the loss of your capital. You should do your own research and consult a professional before making any decisions. This article is not a suggestion or an endorsement of any cryptocurrency or platform.

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