FTX creditors will receive only 10–25% of their cryptocurrency holdings from the defunct exchange after bankruptcy documents were revised to award the value of assets lost when the petition was filed.

Sunil Kavuri told Cointelegraph that many FTX customers are still suffering from “mental distress, panic attacks, divorces and suicidal thoughts” due to their life savings being “stolen.”

The FTX creditor-activist noted that in light of the revision, creditors will receive reimbursements according to the date of the petition.

This means that creditors will receive the value of their holdings when the price of Bitcoin was about $16,000, significantly lower than today.

Binance founder CZ walks free from US prison

On Sept. 27, Binance founder and former CEO Changpeng “CZ” Zhao walked free from United States federal prison after serving about four months on Anti-Money Laundering (AML) violations.

CZ pleaded guilty in November 2023 to federal charges for not properly implementing AML controls at the centralized exchange.

The Binance founder agreed to return to the US from Dubai in April, spending the first two months in a minimum security prison in southern California.

According to a Sept. 26 Fortune report, CZ was then relocated for the remainder of his sentence to a halfway house in Long Beach, where he was allowed supervised daytime excursions.

Tornado Cash’s Roman Storm to stand trial after judge denies dismissal

Roman Storm, the developer and co-founder of Tornado Cash, on Sept. 26 was denied his motion to dismiss the case brought against him by the US government.

Storm will face a criminal trial despite his bid to dismiss three federal charges brought against him and fellow co-founder Roman Semenov in August 2023 by the Justice Department.

The charges include conspiracy to commit money laundering, sanctions violations and operating an unlicensed money-transmitting business.

New York District Court Judge Katherine Polk Failla said she could not “simply accept Mr. Storm’s narrative that he is being prosecuted merely for writing code.”

South Korea fines Worldcoin for violating personal protection laws

On Sept. 26, South Korea’s personal information watchdog imposed a 1.1 billion Korean won fine ($829,000) on the Worldcoin Foundation and its affiliate Tool For Humanity (TFH).

The country’s Personal Information Protection Commission (PIPC) said it issued the fine over violations of the Personal Information Protection Act and that it would also impose corrective orders.

The PIPC started its investigation in February, after receiving complaints that Worldcoin Foundation was be collecting biometric information in exchange for crypto.

After the investigation, it concluded that the Worldcoin Foundation and TFH had collected information, including iris scans of South Koreans, without a legal basis.

Source : Cointelegraph - Sep 30, 2024