FTX has received court approval to repay customers whose digital assets were trapped on the platform after its collapse nearly two years ago. The approval comes from U.S. Bankruptcy Judge John Dorsey, who signed off on a plan allowing FTX to compensate customers affected by the downfall of Sam Bankman-Fried’s exchange.

According to its CEO, Julia Leung, the Hong Kong Securities and Futures Commission (SFC) is set to approve additional cryptocurrency exchanges by the end of 2024. Leung shared the update on October 6, stating that 11 platforms currently undergoing on-site reviews are expected to make further progress on their applications by year’s end. 

Bitcoin posted a 2.5% gain in the third quarter of 2024, bouncing back from a decline in the second quarter, according to NYDIG. NYDIG notes that Bitcoin’s trading has remained largely rangebound despite this recovery, fluctuating between $70,000 and $54,000 for most of the past six months. NYDIG’s analysis highlights Bitcoin’s resilience in the face of significant market challenges.

Top stories in the Crypto Roundup today:

• FTX Customers to Receive Full Repayment After Court Clears $16.5B Plan
• Hong Kong’s SFC Set to Approve More Crypto Exchanges by Year-End
• Bitcoin Remains 2024’s Best-Performing Asset Despite Challenges, Says NYDIG

FTX Customers to Receive Full Repayment After Court Clears $16.5B Plan

FTX has received court approval to repay customers whose digital assets were trapped on the platform after its collapse nearly two years ago. The approval comes from U.S. Bankruptcy Judge John Dorsey, who signed off on a plan allowing FTX to compensate customers affected by the downfall of Sam Bankman-Fried’s exchange. This decision could also result in shareholders receiving part of $1 billion in seized assets.

In November 2022, after FTX imploded, customers faced the possibility of recovering only a fraction of what they were owed. However, by June 2024, FTX had accumulated $12.6 billion in assets, a figure that could increase to as much as $16.5 billion after all platform assets are sold. These assets include stakes in various ventures, such as the artificial intelligence company Anthropic.

Attorney Ken Pasquale, representing the creditors, noted that the crypto market rebound over the last year has played a crucial role in increasing the value of FTX’s assets. This increase allowed FTX to negotiate agreements with creditors and regulators, improving customer recovery prospects.

Unusually, FTX preferred shareholders could also receive some funds, a rarity in Chapter 11 bankruptcies where stockholders are often left with nothing. A portion of the funds comes from the sale of assets seized by the federal government, including $626 million from the sale of Robinhood shares previously owned by Bankman-Fried and co-founder Gary Wang.

However, some customers have criticized the repayment plan, as repayments will be made in cash rather than cryptocurrency. Payments will also not be immediate, as FTX is in the process of establishing a trust and hiring a firm to oversee the distribution of funds.

Hong Kong’s SFC Set to Approve More Crypto Exchanges by Year-End

The Hong Kong Securities and Futures Commission (SFC) is set to approve additional cryptocurrency exchanges by the end of 2024, according to its CEO, Julia Leung, who said that 11 platforms currently undergoing on-site reviews are expected to make further progress on their applications by year’s end.

This announcement comes on the heels of the SFC’s approval of the local exchange HKVAX, which became the third exchange in Hong Kong to receive regulatory approval. HashKey and OSL were previously granted licenses, upgraded from those they held under the prior regulatory framework. Bullish, the parent company of CoinDesk, is also among the companies applying for a license.

Hong Kong’s licensing regime has faced criticism for being too strict, potentially hindering the city’s ambitions of becoming a hub for cryptocurrency and Web3. In August, reports indicated that the SFC found unsatisfactory practices at some exchanges, particularly highlighting concerns over custody practices and cybercrime risk mitigation.

Despite attempts to attract major players, including an invitation extended to Coinbase by a Legislative Council member, several international exchanges have withdrawn their applications, including OKX and Bybit. The South China Morning Post cited the SFC’s directive to prevent mainland Chinese residents from accessing services as a possible reason for these withdrawals.

Bitcoin Remains 2024’s Best-Performing Asset Despite Challenges, Says NYDIG

Bitcoin posted a 2.5% gain in the third quarter of 2024, bouncing back from a decline in the second quarter, according to a recent research note from Greg Cipolaro, Global Head of Research at NYDIG. Despite this recovery, Cipolaro notes that Bitcoin’s trading has remained largely rangebound, fluctuating between $54,000 and $70,000 for most of the past six months. NYDIG’s analysis highlights Bitcoin’s resilience in the face of significant market challenges.

One major factor that affected Bitcoin’s Q3 performance was the resolution of high-profile bankruptcies, including the Mt. Gox case, which saw billions of dollars worth of Bitcoin returned to creditors.

Combined with sales by the U.S. and German governments, these developments contributed to price pressure. Cipolaro explains that the fear of these coins coming to market affected Bitcoin’s price more than the actual selling activity.

NYDIG’s report also indicates that many Bitcoin investors found the third quarter frustrating, as traditional asset classes, including utilities, real estate, and small-cap stocks, outperformed the cryptocurrency.

NYDIG says that, despite these challenges, Bitcoin remains the best-performing asset of 2024. While its lead over other assets has narrowed due to increased volatility in August, Cipolaro emphasizes that Bitcoin still outperforms on a year-to-date basis. The report also notes that Bitcoin’s unexpected gain in September defied historical trends, as this month is typically weaker for the cryptocurrency.

Bybit Launches WSOT 2024 with $10M Prize Pool for Global Traders

Bybit, one of the leading cryptocurrency exchanges, officially launches the 2024 World Series of Trading (WSOT), offering a massive $10 million USDT prize pool. The tournament will take place from October 1 to 31, 2024, inviting crypto traders of all levels to compete in three exciting categories: Squad Showdown, Copy Trading Fest, and Buddy Rally.

The WSOT 2024 promises top-tier rewards, including Rolex watches, luxury yacht experiences, and world travel packages. The Squad Showdown enables participants to lead or join squads, fighting for the largest combined profits. Copy Trading Fest offers traders a way to mirror the strategies of top traders, while Buddy Rally encourages friendly competition among peers.

This year's tournament is expected to be the biggest in WSOT history, aiming to bring the global crypto community together. Traders can start registering now and prepare for intense action throughout October.

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