Documents filed with the federal court database system PACER revealed FTX may have over 1 million creditors. Its new CEO, veteran insolvency overseer John J. Ray III, is working with legal, cybersecurity and forensic advisers on the company’s myriad of subsidiaries and their respective bankruptcy processes.

The Caribbean nation of St. Kitts and Nevis is exploring the possibility of declaring Bitcoin Cash (BCH) legal tender as part of the process of introducing cryptocurrencies into the country’s economy.

Sam Bankman-Fried’s crypto hedge fund, Alameda Research, reportedly used insider knowledge to purchase the tokens set to be listed on the FTX exchange ahead of public announcements, to then sell them at a profit.

Top stories in the Crypto Roundup today:

• FTX May Have Over 1 Million Creditors
• St. Kitts and Nevis Weights Making Bitcoin Cash Legal Tender
• Alameda Research Reportedly Bought Tokens Ahead of FTX Listings

FTX May Have Over 1 Million Creditors

Documents filed with the federal court database system PACER revealed FTX may have over 1 million creditors. Its new CEO, veteran insolvency overseer John J. Ray III, is working with legal, cybersecurity and forensic advisers on the company’s myriad of subsidiaries and their respective bankruptcy processes.

The firm filed over 100 dockets for its various affiliated companies, including the crypto hedge fund Alameda Research. As part of these dockets, FTX filed motions to jointly administer all of the entities rather than treat each one individually.

FTX also asked if, rather than create a list of the top 20 creditors for each firm, it can create a top 50 list for the overall structure. The filing reads:

"As set forth in the Debtors' petitions, there are over one hundred thousand creditors in these Chapter 11 Cases. In fact, there could be more than one million creditors in these Chapter 11 Cases. As such, the Debtors submit that cause exists to modify that requirement such that the Debtors will file a consolidated list of their top 50 creditors."

The platform’s operators are also asking the court to allow it to email the notice of bankruptcy to FTX’s creditors, rather than serving them with notices at their homes.

Meanwhile, U.S. federal authorities have ordered cryptocurrency issuer Paxos to freeze $19 million worth of crypto tied to the exchange.

St. Kitts and Nevis Weights Making Bitcoin Cash Legal Tender

The Caribbean nation of St. Kitts and Nevis is exploring the possibility of declaring Bitcoin Cash (BCH) legal tender as part of the process of introducing cryptocurrencies into the country’s economy.

During the Bitcoin Cash 2022 Conference, the country’s Prime Minister Terrance Drew announced:

“I welcome the opportunity to dialog further with a view to exploring opportunities for Bitcoin Cash mining and making bitcoin cash legal tender in St. Kitts and Nevis by March 2023 once the safeguards to our country and our people are guaranteed.”

Drew added his country was aware of the possible advantages of adopting a cryptocurrency as legal tender, and that various businesses on the island already accept BCH as a payment method.

Alameda Research Reportedly Bought Tokens Ahead of FTX Listings

Sam Bankman-Fried’s crypto hedge fund, Alameda Research, reportedly used insider knowledge to purchase the tokens set to be listed on the FTX exchange ahead of public announcements, to then sell them at a profit.

According to analysis from crypto compliance firm Argus, between the start of 2021 and March of this year, Alameda held $60 million worth of 18 different tokens that were eventually listed on FTX.

Bankman-Fried founded Alameda in 2017, before launching the cryptocurrency exchange in 2019, and stepped away from the hedge fund’s day-to-day operations in 2021. While Bankman-Fried maintained that the companies ran as separate entities, a large portion of Alameda’s balance sheet being in FTT led to a bank run on FTX.

Per Argus, Alameda research bought into a position in tokens set to be listed. Argus co-founder Omar Amjad said it’s “ quite clear there’s something in the market telling them they should be buying things that they previously hadn’t.”

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