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Crypto markets hold tight as plans are revealed to recompensate FTX investors. This comes as Japan crypto firm Coincheck pushes for a NASDAQ listing and the EU ponders whether crypto start-ups could be eligible for UCITS funding. Explore all of this and more in 99Bitcoin’s This Week in Crypto.
In a dramatic turn of events, fallen crypto exchange FTX’s bankruptcy attorneys announced a plan that promises to recover all lost funds for its customers and provides additional interest, surpassing the original assets.
Measured from the $73k ATH, #Bitcoin prices corrected by -20.3%, which is the deepest correction on a closing basis since the FTX lows in Nov-2022.
That said, this macro uptrend still appears to be one of the more resilient in history, with comparatively shallow corrections… pic.twitter.com/8WvCOGBV2R
— glassnode (@glassnode) May 9, 2024
Plans Revealed to Recompensate FTX Investors In Latest Move
After the catastrophic collapse of the once-leading cryptocurrency exchange FTX in November 2022, the former titan in the digital currency world saw customers lose significant funds, and the industry experienced a crisis of confidence.
It has now been reported that FTX’s asset recovery team expects 98% of FTX investors claiming losses to receive approximately 118% of the amount of their claims.
According to a CNN report, FTX would have as much as $16 billion to disburse. This recovery marks a significant milestone in locating $8 billion in customer assets that vanished during the collapse.
Despite the recovery, investors are not happy that the payout does not reflect the recent surge in the crypto market.
Don't be fooled into believing FTX creditors were made whole.
They’re only getting back the value of their crypto that was sold at the bottom of the bear market when FTX crashed.
Investors are down 290% compared to if they still had their bitcoins.
— Sasha Hodder (@sashahodler) May 8, 2024
Sam Bankman-Fried, FTX’s founder and former CEO, has been in the news since he was arrested for financial fraud and sentenced to 25 years in prison.
Since such cases have come to light, the US Securities and Exchange Commission (SEC) has become more stringent in its approach to crypto and crypto regulations.
EU Considers Crypto’s Eligibility for UCITS Funds
Amidst the legal and regulatory developments in the US, the European Securities and Markets Authority (ESMA) has issued a call for evidence on the review of the Undertakings for Collective Investment in Transferable Securities (UCITS) Eligible Assets Directive (EAD).
UCITS are basically investment funds regulated at the European Union level. “The objective of this call is to gather information from stakeholders to assess the possible risk and benefits of UCITS gaining exposure to various asset classes,” stated ESMA.
This move by the EU underscores its intention to update its financial regulatory framework for investor protection and market stability, especially in the world of digital assets.
Should crypto-asset exposure be added to a €12 trillion investment product market in the EU?
This is what ESMA, the EU Securities & Markets Authority, would like experts to weigh in on.
UCITS funds have €12 trillion of assets under management and account for ~75% of all… pic.twitter.com/83qz7MMduB
— Patrick Hansen (@paddi_hansen) May 10, 2024
Japan Crypto Firm Coincheck Makes Bold Move Towards Nasdaq
Meanwhile, in Japan, the local crypto exchange Coincheck has set its sights on a Nasdaq listing and is preparing for a listing in the third quarter of 2024.
After a partnership with Thunder Bridge Capital Partners IV, a special purpose acquisition company, Coincheck has revealed its plan to drive greater visibility and access to a broader investor base, according to a Business Insider report.
This move also underscores the expansion of Japan’s crypto market, as the listing may potentially mark deeper integration with traditional financial systems.
The developments in the crypto world signal a new era for digital currencies. As the crypto landscape evolves, these milestones pave the way for greater acceptance of digital currencies and following regulatory clarity.
EXPLORE: 11 Upcoming Coinbase Listings To Explore in May 2024
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
