There was a significant and what could largely be considered as a positive update for FTX customers this week. The defunct crypto exchange launched its claims portal which allows users globally to file a claim to their lost funds on Tuesday.
Although the portal went offline around an hour after its launch for unknown reasons, a quick check on Friday morning shows that the site is now fully functional.
Here are some major crypto stories from around the world this week.
Terra co-founder’s first court hearing
Seoul Southern District Court on Monday conducted the first hearing for Daniel Shin, the defunct Terraform co-founder and seven other employees of the company.
According to a report from local news outlet News1 Korea on Monday, the Seoul court held the preliminary hearing for Shin who was indicted in April by South Korea on violations of capital-markets law among other charges, and seven of his alleged accomplices.
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However, the former Terra exec reportedly did not personally show up for the hearing. His attorneys argued that this case is more technical and asked for extra time. Judge Jang Seong-hoon approved the request and adjourned the case till August 28
South Korean companies to disclose crypto holdings from 2024
According to draft rules released by the South Korean Financial Services Commission (FSC) on Tuesday, the Asian country will require companies that own or issue crypto to disclose their holdings in financial statements from 2024 onwards.
Under the proposed rules by the financial regulator, companies will need to disclose information about the quantity, characteristics, business models and accounting policies regarding the sale of virtual currencies as well as profits, volume and market value of their crypto.
The Financial Services Commission (FSC) said the measures aim to improve accounting transparency, following the passing of the Virtual Asset User Protection Act on June 30.
FTX claim portal goes live
Bankrupt cryptocurrency exchange FTX has launched a customer claims portal which offers customers of the failed crypto exchange who had accounts with FTX, FTX US, Blockfolio, FTX EU, FTX Japan and Liquid the opportunity to access their account information and submit claims for consideration in the firm’s restructuring proceedings.
According to FTX’s Kroll page, users have until September 29 to submit claims. The FTX claim portal says users would be able to access their account balances as of November 11, 2022 (the day FTX filed for bankruptcy in the United States).
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Recall that debtors in FTX’s bankruptcy case announced in June that the firm planned to launch an online portal for customer claims. With the plan now reaching the implementation stage, it is positioned to serve as an incentive to revive trust in the exchange ahead of the grand reopening of the trading platform.
Stablecoin company, Circle cuts workforce
According to a statement issued on Wednesday, Stablecoin issuer Circle has cut its workforce. In a statement to Coindesk, a spokesperson said:
“To maintain our strong balance sheet, Circle is redoubling its focus on core business activities and execution. As a result, we have reduced or ended investments in non-core activities and reduced operational expenses which includes a marginal reduction in headcount. At the same time, we have identified new areas for investment and are continuing to hire in key areas of focus on a global basis.”
This has made Circle join the list of crypto companies, including Coinbase, Chainalysis and Gemini that have had to cut workforce recently for various reasons.
Former Celsius CEO reportedly arrested
The former CEO of now-bankrupt crypto lender Celsius, Alex Mashinsky, was reportedly arrested on Thursday morning.
According to a Bloomberg report which cited sources familiar with the matter, Alex was arrested after a probe into the company’s collapse and he was indicted on charges of fraud and intention to manipulate the market by the United States Department of Justice.
The trouble for Celsius and its former CEO began in June last year when the crypto lender abruptly suspended withdrawals on the platform. On June 16, 2022, securities regulators from five different U.S. states opened an investigation into Celsius, and within a month, the platform filed for bankruptcy.
A CFTC investigation found that Celsius and its former CEO broke several banking laws and misguided and lied to their customer base.
That is all from us this week, see you same time next week.
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