TronWeekly

Crypto World News

You are here: Home / Archives for Legal Case

Legal Case

FTX Warning: Return Stolen Assets or Face Legal Fury

by

  • FTX escalates legal action against NFT Stars and Delysium for allegedly withholding owed crypto assets.
  • The exchange urges other token issuers to return assets, warning of more lawsuits to maximize creditor recoveries.
  • This legal push coincides with FTX’s upcoming $16 billion cash distribution to creditors starting May 30th.

In a major step, FTX is ramping up legal pressure against uncooperative token issuers or counterparties who are stonewalling asset recovery efforts. As per the press release, the exchange named two firms, NFT Stars Ltd. and KUROSEMI INC. (d/b/a Delysium), who have allegedly gone silent over handing over contractually entitled tokens. In the filing, it accused the firms of avoiding calls for engaging and seeking a resolution without litigation.

We urge token and coin issuers to return assets that rightfully belong to the exchange, and are willing to initiate litigation barring adequate engagement. Our team continues to work tirelessly to maximize recoveries for the FTX Estate and return funds to creditors, including by filing two complaints against issuers who have repeatedly ignored our attempts to engage.

The FTX Recovery Trust is represented by Sullivan & Cromwell LLP as legal counsel and is aided by Alvarez & Marsal North America, LLC as financial advisor, Perella Weinberg Partners LP as investment banker, Quinn Emanuel Urquhart & Sullivan, LLP as special counsel, and Landis Rath and Cobb LLP as Delaware counsel.

$16B Payout Looms as FTX Sues for Missing Crypto

As of now, FTX is in the process of contacting numerous other token and coin issuers regarding its assets and has warned of additional suits against non-responsive parties. It urges these parties to respond timely to avoid litigation.

This legal development comes as the crypto exchange is gearing up for a significant payout, with $16 billion in cash scheduled for distribution to creditors on the 30th of May. Notably, small creditors have already begun receiving payments, offering a glimmer of hope after the platform’s dramatic crash in November 2022.

FTX
FTX Warning: Return Stolen Assets or Face Legal Fury 2

While the exact amounts individual creditors will receive hinge on the finalized claims process, this large-scale disbursement marks a huge step forward in the complex FTX saga. The news will be closely watched by the crypto community and those impacted by the exchange’s failure.

Read more: FTX Unstakes 186K SOL Tokens—Will the Market See Another Shock?

LIBRA Scandal: Argentina’s Chief Prosecutor Hunts Milei’s $100M Crypto Trail

by

The LIBRA scandal took a new turn as Argentina’s Chief Prosecutor Eduardo Taiano stepped in. Cracking the whip, Taiano ordered the freezing of approximately $100 million in digital assets connected to the sale of $LIBRA tokens.

The meme coin fiasco, involving Argentine President Javier Milei, shot up in price after he endorsed it publicly. Milei also retweeted a tutorial on how to buy the Solana-based token. This promotion sent the price soaring to $4.56 billion before plummeting to $257 million, leading to investor losses of roughly $250 million.

The case has been dubbed Cryptogate with The Economist calling it the “first big scandal” of Milei’s presidency.

Milei continued to remain defiant, in the face of fraud charges for his involvement in the token’s promotion. Argentine lawyers has raised serious concerns about its legitimacy and the potential impact on the national stock market.

LIBRA
LIBRA Scandal: Argentina's Chief Prosecutor Hunts Milei's $100M Crypto Trail 4

Amidst growing clamour against Milei’s actions, Argentina’s Chief Prosecutor Taiano has now requested detailed transaction records related to the $LIBRA coin project and the deleted social media posts. This is seen as attempts to recover key evidence as Milei and his associates deleted the posts.

LIBRA Creator’s Damning Messages Expose Milei Family Payments

Apart from that, Hayden Davies, the creator of the meme coin, is also under scrutiny for his role in the incident. On-chain sleuths exposed messages between Davies and an anonymous businessman that revealed money was paid to President Milei’s sister in exchange for political favors.

As reported by TronWeekly earlier, the leaked message showed Davies asking the businessman: “SEND $$ to MILEI’S SISTER and he will sign and DO WHAT I WANT.” Such revelations have sparked impeachment discussions as well as bribery accusations and political manipulation within the crypto sector.

While the nation’s financial watchdog, the National Securities Commission (CNV), recently decided against intervening in the LIBRA case, authorities are tightening oversight as concerns over crypto-related financial activities grow. This move signals increased scrutiny on digital assets in Argentina.