bankruptcy

The Kobeissi Letter posted on platform X, stating that according to Goldman Sachs data, over 1.2 million leveraged retail trading accounts in South Korea triggered margin call notifications, with an estimated 320,000 to 360,000 accounts completely liquidated, accounting for about 3.4% of the adult population in South Korea.As the Korea Composite Stock Price Index (KOSPI) has fallen approximately 18% since July 13, it is expected that the number of accounts that have been completely forcibly liquidated has now exceeded 500,000.

According to BBX data, global institutional capital and listed mining companies have been active in the allocation of funds and asset restructuring in the digital asset ecosystem over the weekend, with the following key developments:Traditional asset management giant Capital Group significantly increased its investment in cryptocurrency treasury: The top investment management company Capital Group's SMALLCAP World Fund recently disclosed its latest positions, having increased its holdings in the Bitcoin treasury company Strive by a total of 481,772 shares (worth approximately $5.52 million). After this increase, the fund currently holds a total of 2.93 million shares of Strive (total value approximately $33.62 million), highlighting the strong interest of traditional Wall Street asset management capital in indirectly allocating Bitcoin assets.Bitdeer disclosed mining ledger, adhering to "zero holdings" fiat operation: Nasdaq-listed Bitcoin mining company Bitdeer (NASDAQ: $BTDR) announced its latest production and holding data. As of the week ending July 24, its Bitcoin mining output was 274.6 BTC, while it sold 274.8 BTC on the open market, resulting in a net addition of 0 BTC. Amidst the frenzy of many peers hoarding coins, Bitdeer remains steadfast in maintaining its "Bitcoin zero holdings" strategy with pure fiat operations.Poolin applies for bankruptcy, selling Texas mining assets for $52 million: The established mining pool Poolin has officially filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey. Court documents show that its total debt before filing for bankruptcy was approximately $173.1 million (of which about $163.7 million was unsecured promissory notes issued to Poolin Wallet customers after the withdrawal suspension during the 2022 bear market), with the number of creditors estimated to be between 10,001 and 25,000. Currently, Poolin intends to sell its Texas mining assets for a total price of $52 million and has signed an agreement with Thor CALAP LLC, which will bid $15 million and $37 million respectively for the power usage rights and equipment of the Pyote and Tarbush mining areas.

According to TheMinerMag, the former largest Bitcoin mining pool in the world, Poolin, has applied for Chapter 11 bankruptcy protection in the United States, planning to sell its Texas Bitcoin mining assets for $52 million and cease operations. Poolin and its two U.S. affiliates submitted a voluntary application to the bankruptcy court in New Jersey on July 22, with liabilities of approximately $173 million, of which about $163.7 million is unsecured IOUs issued to Poolin wallet users after withdrawals were suspended during the downturn of the crypto market in 2022.Approximately 11,700 wallet users hold balances of over $100. Its two Texas mining sites ceased mining and hosting operations on July 10. Poolin has reached an asset purchase agreement with Thor CALAP LLC, with the Pyote site valued at $15 million and the Tarbush site’s power rights and equipment valued at $37 million, making a total bid of $52 million as the starting bid. Poolin stated that demand for AI infrastructure may increase the value of the mining site’s power and equipment. The final recovery amount from the court auction will depend on bids, fees, and court approval.

Fox Business crypto reporter posted on the X platform stating that the bill outlines the rules for handling digital assets in the event of bankruptcy of exchanges or custodians.The bill helps ensure that customer assets receive the same protection as traditional financial assets and remain the property of the customers, rather than becoming part of the company's bankruptcy estate. This could help prevent a situation similar to FTX from occurring again.

According to The Block, Movement's original core development company Movement Labs (MVMT) applied for Chapter 11 bankruptcy protection in a bankruptcy court in Delaware, USA, earlier this month.According to documents submitted on July 15, the company reported assets between $100,000 and $500,000, with liabilities reaching up to $10 million, listing nearly 299 creditors, among which the largest unsecured claim is over $1.6 million from the ousted co-founder Rushikesh Manche. Manche retains a 34.25% equity stake and has previously filed a lawsuit regarding legal fees related to the Department of Justice grand jury investigation into the MOVE token issuance scandal, which was supported.The company was the core developer of the Ethereum Layer 2 network Movement Network and completed a $38 million Series A financing led by Polychain. In December 2024, the MOVE token issuance crisis was triggered by a market maker sell-off, leading to Manche's dismissal after an internal investigation, and core development work has since been transferred to Move Industries.

According to Bitcoin.com, U.S. Senator Cynthia Lummis stated that the CLARITY Act will change the way customer crypto assets are handled when digital asset platforms enter bankruptcy proceedings; customer assets should continue to belong to the customers, rather than being included in the company's bankruptcy estate.The bill requires regulated digital asset intermediaries to treat customer cash and digital assets as customer property and to segregate them from company property. The bill also generally prohibits brokers, dealers, and exchanges from using customer assets for their own or others' benefit without authorization.The bankruptcies of Celsius and Voyager sparked disputes over the ownership of customer deposits. In January 2023, U.S. Bankruptcy Judge Martin Glenn ruled that the cryptocurrency deposited in Celsius Earn accounts became company property under the terms of use, involving approximately 600,000 Earn accounts and about $4.2 billion in assets.Lummis stated that the CLARITY Act also aims to provide regulatory certainty for developers, enhance investor protection, and improve market integrity. The bill will clarify the responsibilities of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) in different areas of the crypto market, and it has already passed the House of Representatives but has not yet passed the Senate.

According to CoinDesk, Wall Street market-making giant Citadel Securities has abandoned its U.S. trade secret lawsuit against crypto market maker Portofino Technologies and is instead seeking to recover nearly £6 million in arbitration compensation previously awarded through the UK bankruptcy process.On Wednesday, Citadel submitted documents to a U.S. court, jointly requesting the dismissal of the New York trade secret case with Portofino, stating that continuing the U.S. litigation lacked economic significance, as the judgment won in the London arbitration remains difficult to enforce.It is reported that this case lasted nearly three years, but the U.S. litigation ultimately did not make a substantive ruling on the trade secret allegations previously raised by Citadel. Citadel emphasized that the withdrawal of the lawsuit is not due to a lack of basis for its trade secret claims, but rather because the company has already achieved a victory in another London arbitration proceeding.

According to the official report, the Dutch Public Prosecution Service (OM) has applied to the Rotterdam court to declare the cryptocurrency trading platform Knaken Cryptohandel B.V. and its subsidiary Stichting Knaken Payments bankrupt.OM stated that the Dutch Authority for the Financial Markets (AFM) had previously warned that the platform was illegally providing exchange and custody services for crypto assets without the necessary licenses. Although the platform claims to have ceased operations and is undergoing liquidation, it has currently completely stopped making payments to customers. OM is concerned that its liquidation process lacks order and may harm investors' interests, thus applying for bankruptcy, aiming to appoint a liquidator to take over and safeguard creditors' funds.In addition, based on the report from AFM, the Dutch Financial Intelligence and Investigation Service (FIOD) has launched a parallel investigation into the alleged criminal activities of the platform. Law enforcement executed multiple searches on June 29, seizing relevant digital storage devices and freezing some of the company's assets, with no arrests made so far.

According to Protos, the Estonia-based cryptocurrency exchange Coinmetro has announced that it has submitted a restructuring application to the local court. The platform stated that this move is due to "a special situation caused by the bankruptcy of a financial service provider," and has fully suspended user registration, deposits, and withdrawals since June 22.Coinmetro CEO Kevin Murcko revealed that the failure of the related provider actually occurred years ago, but as the July 1 deadline for compliance with the EU's Markets in Crypto-Assets Regulation (MiCA) approaches, this legacy funding gap has had a substantial and fatal impact on the company's balance sheet. Additionally, reports indicate that Coinmetro is currently facing issues in Estonia, including overdue annual reports and unpaid taxes, and was sued last August by the bankruptcy trustee Prime Trust, seeking to recover approximately $1.2 million that was withdrawn before its collapse.

According to Decrypt, the Dutch Public Prosecution Service has applied to the Rotterdam court to declare the cryptocurrency platform Knaken and its affiliated payment institution Stichting Knaken Payments bankrupt, stating that this move is in the "public interest."Knaken has ceased operations since early June, leaving approximately 30,000 users unable to withdraw funds from the platform. The prosecution stated that the platform did not obtain the license required by the EU's Markets in Crypto-Assets Regulation (MiCA) from the Dutch Authority for the Financial Markets (AFM), and the liquidation process lacks orderly management, having stopped payments to customers and allegedly advised users not to file compensation claims.Meanwhile, the Dutch Financial Intelligence and Investigation Service (FIOD) has launched a criminal investigation and searched relevant locations on Monday, seizing laptops, mobile phones, and some company assets, with no arrests made so far. If the court approves the bankruptcy application, the court-appointed bankruptcy administrator will take over the company's assets and be responsible for determining the repayment arrangements for customers and other creditors.

According to The Block, Nasdaq-listed Bitcoin ATM operator Bitcoin Depot has filed for Chapter 11 bankruptcy in the Southern District of Texas to gradually shut down operations. CEO Alex Holmes stated that changes in the regulatory environment have made the current business model unsustainable, with states implementing stricter compliance obligations, including new transaction limits, and some jurisdictions even directly restricting or banning Bitcoin ATM operations.In April, the company experienced a security breach that resulted in the theft of $3.7 million. Last week, the company stated that there were "significant deficiencies" in cash transportation reconciliation, preventing timely delivery of the first-quarter financial report. Preliminary unaudited data shows that first-quarter revenue decreased by 49.2% year-over-year, with a net loss of $9.5 million, compared to a net profit of $12.2 million in the same period last year. The company was founded in 2016 and operates the largest Bitcoin ATM network in North America, with over 9,000 machines globally.

According to Bloomberg, Poland's largest digital asset trading platform Zondacrypto has stated that it is on the verge of bankruptcy after attracting approximately $100 million in deposits from Polish users and has stopped providing services for customer accounts.The Polish national prosecutor's office has launched an investigation into suspected fraud against it. The report notes that Zondacrypto is registered in Estonia, and its bankruptcy crisis is putting political pressure on Donald Trump's allies in the Polish presidential office.

According to The Street, Goliath Ventures, a cryptocurrency company based in Florida, has filed for Chapter 11 bankruptcy reorganization in the Southern District of Florida.The company is alleged to be linked to a $328 million Ponzi scheme, with over 2,000 victim investors, including Gregory Wilson, who lost approximately $8.74 million, and John Euliano, who lost about $1.28 million. Additionally, plaintiffs have filed a class-action lawsuit against JPMorgan Chase early next month, accusing it of turning a blind eye to suspicious transactions involving Goliath Ventures.Previously, Goliath Ventures' former CEO Christopher Alexander Delgado was arrested for allegedly being involved in the $328 million Ponzi scheme and faces charges of wire fraud and money laundering. Delgado lured victims under the guise of investing in cryptocurrency liquidity pools and promising monthly returns, but the funds were used to pay returns to earlier investors, purchase luxury homes, and finance extravagant activities.

BlockFills, headquartered in Chicago, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. Documents submitted by the company indicate that its estimated assets are between $50 million and $100 million, while estimated liabilities are between $100 million and $500 million.In a statement released on Sunday, BlockFills stated that after extensive discussions with investors, clients, and creditors, the Chapter 11 bankruptcy process is the "most responsible path forward." This filing for reorganization will allow the company to undergo an orderly restructuring under court supervision while maintaining transparency and oversight. The company added that this move aims to "stabilize the business, seek additional liquidity and avenues for recovery, and explore potential strategic transactions," while emphasizing that protecting customer interests "remains a top priority."

According to Arkham monitoring, Alameda unstaked $17 million SOL and transferred it to the bankruptcy account. Alameda regularly allocates SOL to creditors each month, and currently, its on-chain account still holds $321 million SOL.

According to the WSJ, the court-appointed bankruptcy administrator of Terraform Labs has sued Jane Street in federal court in New York, accusing it of engaging in front-running trades using non-public insider information provided by Terra insiders during the collapse of Terra and profiting from it.The complaint states that shortly after Terraform Labs withdrew 150 million TerraUSD (UST) from the Curve liquidity pool, a wallet address associated with Jane Street also withdrew 85 million UST from the same pool, with a series of operations that illegally profited and accelerated the demise of Terraform Labs.

According to Arkham monitoring, the bankruptcy administrators of Alameda Research distributed over $15 million worth of SOL to creditors in the recent round of monthly allocations.A total of $15.6 million in SOL was transferred to 25 independent addresses, as part of a continuous distribution plan that has been ongoing for 21 months. The Alameda on-chain wallet currently still holds $314.95 million worth of SOL.

According to Ember Monitoring, after LayerZero announced plans to launch the L1 public chain Zero, the bankruptcy liquidation address of Alameda Research exchanged 129 million STG (12.9% of the total STG supply) for 11.142 million ZRO (approximately 24.29 million USD) two hours ago.