GM Readers!📪 It's BitDegree Insider, and here's your daily Web3 avocado toast.
⭐️Today's selection:
- 💸BlockFi To Return $297M
- 🧩️Answer To Thursday Quiz
- 👌Selected Meme of The Day
- 📰Bite-Sized News
BANKRUPT BLOCKFI TO RETURN $297M
It's been a long time since we talked about BlockFi, the fallen lion of the cryptocurrency lender business.
The news today was something that BlockFi Wallet program users found rather uplifting.
The bankrupt company has been authorized by a US judge to reimburse $297 million to its Wallet program depositors.
Well, the Wallet program depositors can finally get some peace. But... the complete justice remains to be served.
The authorization doesn't apply to customers holding BlockFi Interest Accounts (BIA).
Bankruptcy Judge Michael Kaplan clarified that the BIA funds were used for BlockFi's lending business, thus making them part of the bankruptcy estate.
As a result, these funds will be put to use later to settle the debts of all creditors.
So, Wallet program depositors are happy, and creditors can see that the case is not yet frozen, and things are progressing. So, it makes sense to remain optimistic. To them.
Yet BlockFi Interest Account users may find a reason, or two, to swear.
What gives the Wallet program depositors an exception, is the fact that this program was set apart from BlockFi's other operations - it did not yield interest on the deposits made by customers.
Judge Kaplan also made clear that at this point, BIA customers who attempted to shift their funds to Wallet accounts will not receive refunds.
Here's how this was put to words:
"Quite simply, a customer's withdrawal or transfer request on the user interface did not and does not automatically transfer digital assets."
For our new readers, and those, who simply forgot what on Earth is going on with the BlockFi:
The company sought Chapter 11 bankruptcy protection in late November following the collapse of FTX, the infamous crypto exchange, that led to questions about its financial stability. Court documents indicated West Realm Shires Services Inc. (operating as FTX US) topped the creditors' list along with a $30 million debt to the US Securities and Exchange Commission.
To repay its creditors, BlockFi planned to sell off its crypto mining equipment and $160 million worth of Bitcoin-backed loans.
Okay, that sounds... like a plan. And, it looks like, they're getting somewhere, $297 million is not your daily coffee money.
Right...?
Well... Uhmm...
No.
The company currently owes over 100,000 creditors a staggering $10 billion.
Imagine owning someone that much money. This will take more than some years of hard work for the average salary.
According to BlockFi's lawyer, the company is set to present its bankruptcy exit strategy by May 15th.
Well, we'll see what kind of math, and miracles, and math miracles, we'll get, because a problem of this size, requires a solution that's just as much colossal.
TL;DR: BlockFi, the bankrupt crypto lender, that filed for Chapter 11 in last year's November, soon after the fall of FTX, is showing progress in how they're gonna deal with the $10 billion debt that they still owe to their 100,000 creditors. The latest update was the news, that company has been authorized by a US judge to reimburse $297 million to its Wallet program depositors.
ANSWER TO YESTERDAY'S QUIZ
Yesterday, we asked you about memecoins. We named 10 memecoins, but one of them was an impostor.
Here's the list of them:
SafeMoon (SAFEMOON), PepeCoin (MEME), Hoge Finance (HOGE), Dogcoin (DOG), Kishu Inu (KISHU), Elon Musk Doge (ELONDOGE), Floki Inu (FLOKI), Baby Doge Coin (BabyDoge), WallStreetBets DApp (WSB).
Many of you spotted the impostor straight away, even though it wasn't that obvious (or was it?), since all of these coins were named in a way, so that no one could ever take them seriously.
Yet irony can get more serious than boring non-memecoins, and it often does.
The correct answer was DOGCOIN (DOG), since... it's definitely not the same as DOGECOIN ($DOGE).
Alright now, the working week has tome to an end, and so did today's newsletter. Thank you for reading, and have a restful weekend!
SELECTED MEME OF THE DAY
BITE-SIZED NEWS
- MetaMask Join Forces with PayPal to Allow Ethereum Purchases to US-Based Clients. This will also facilitate transfers from PayPal to MetaMask.
- Elon Musk is Set to Abandon his Role as Twitter CEO. Starting June or July, Elon Musk will serve as Twitter's executive chair and CTO.
- Binance.US Seeks to Decrease CZ's Majority Share Amid Regulatory Pressure. If CZ holds the majority of the stake, the firm may not receive necessary regulatory licenses.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.