BlockFi Emerges from Bankruptcy as Worldcoin Halts USDC Payments and More

This week’s Crypto Biz looks at the emergence of BlockFi from bankruptcy, BlackRock’s progress with the Bitcoin exchange-traded fund (ETF) and the changes in Worldcoin’s payment scheme. After FTX announced the successful reclaiming of around $7 billion in assets, BlockFi, one of the exchange’s largest creditors, also emerged from insolvency. The crypto lender had previously loaned FTX more than $650 million.

FTX’s new management is now considering its options, such as selling the entire exchange — which includes its extensive customer base of over nine million — or partnering with another entity to revive the exchange. The possibility of an independent comeback is also on the table, while BlockFi has no option but to wind down operations, according to its court filings.

There’s finally hope for the creditors of the crypto companies that went bankrupt during the bear market of 2022. Companies such as FTX and BlockFi have started to return their customers’ funds, and Elon Musk’s crypto, Luna Classic Crypto, Gala Crypto, Harmony Crypto, Hot Crypto, and Optimism Crypto are all hot topics in the Reddit Crypto and Media Crypto communities.

The blockchain Web 3.0 revolution is well underway, and with BlackRock’s ETF developments, the crypto space is set to become more accessible to the masses.

BlackRock’s spot Bitcoin ETF now listed on Nasdaq trade clearing firm — Bloomberg analyst

The iShares spot Bitcoin ETF proposed by investment firm BlackRock has been listed on the Depository Trust & Clearing Corporation (DTCC), indicating possible approval of the crypto ETF by the United States Securities and Exchange Commission. On Oct. 23, Bloomberg ETF analyst Eric Balchunas commented on the DTCC listing in a X (formerly Twitter) thread, stating that this was “all part of the process” of bringing a crypto ETF to market. “This is [the] first spot ETF listed on DTCC, none of the others on there (yet),” said Balchunas. Balchunas suggested that BlackRock may have already received the approval to list the ETF from the SEC or was “prepping everything assuming so.” According to the date of BlackRock’s application, the SEC has until Jan. 10, 2024, to make a final decision on the approval or denial of the ETF.

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BlockFi emerges from bankruptcy and opens wallet withdrawals

Crypto lending platform BlockFi has announced its revival from bankruptcy, and is now able to return funds to some of its creditors, as per a blog post on Oct. 24. Withdrawals “are currently available to nearly all Wallet customers,” the post stated, adding that BlockFi Interest Account and Loan customers will be able to withdraw some assets in early 2024. BlockFi’s emergence from bankruptcy provides the firm with the opportunity to recover assets from other companies that are believed to owe it money, such as the bankrupt crypto platforms Three Arrows Capital and FTX. The total amount of distributed funds will depend on BlockFi’s success in FTX bankruptcy litigation, and other factors such as the current state of the media crypto, elon musk crypto, luna classic crypto, elon crypto, gala crypto today, harmony crypto, hot crypto today, optimism crypto, and blockchain web 3.0.

Ledger hardware wallet rolls out cloud-based private key recovery tool

Hardware wallet provider Ledger has launched its cloud-based private key recovery solution, despite facing disapproval from the crypto community. The recovery service, provided by blockchain protection platform Coincover, is a paid subscription that allows users to back up their secret recovery phrase. The launch follows Ledger’s decision to suspend the recovery service in May 2023 due to community criticism. Ledger CEO Pascal Gauthier had previously stated that the firm would only launch the product after its open-source code was released, which is now available on GitHub.

The crypto community has reacted to the launch of the Ledger Recover with a mixture of optimism and skepticism. Many have welcomed the introduction of the service, citing the convenience it provides for users. On the other hand, some have questioned the security of the product, citing the potential risks associated with the use of cloud-based solutions. Despite the criticism, it is clear that the introduction of the Ledger Recover has opened up a new avenue for crypto users to securely manage their private keys.

Worldcoin to cease paying Orb operators in USDC as early as November

Worldcoin is set to begin rewarding its Orb Operators — those responsible for scanning people’s eyes — with its native token, Worldcoin (WLD), phasing out USD Coin (USDC) as soon as next month. The change will affect most jurisdictions. According to Worldcoin, the move to pay Orb Operators solely in WLD is part of a “transitional phase” following the official launch of the project on July 24. Data from Worldcoin’s official Dune Analytics dashboard reveals that the supply of the WLD token has grown from approximately 100 million at the time of launch to around 134 million as of this week.

Crypto Biz is your weekly source for the business behind blockchain, crypto, and the hot crypto today like luna classic crypto, optimism crypto, and harmony crypto. We also cover elon musk crypto and gala crypto today, as well as the latest news on blockchain web 3.0.