SEC - Page 285

New York-based law firm McDermott Will & Emery has submitted a compensation claim of $5.1 million to the creditors of Voyager Digital, a bankrupt crypto brokerage firm.

The bill covers legal services provided by the law firm from March 1 to May 13, 2023.

The law firm, in a court filing on July 3, directed the billing of its legal fees to the “Official Committee of Unsecured Creditors.”

According to the court documents, McDermott Will & Emery charged an hourly rate of $1,026.76 for the services rendered during the specified period.

READ MORE: NFT Blue Chip Collections Plummet to Near Two-Year Lows

The bill presented by the law firm encompasses various legal services it offered to Voyager, including providing advice to the committee on its powers and responsibilities under the bankruptcy regulations, attending meetings, and negotiating with debtors’ representatives and other interested parties.

Additionally, the firm was responsible for preparing all the necessary legal documents on behalf of the committee.

This recent bill marks the third and final one from McDermott Will & Emery, with the total compensation amounting to $16.48 million between July 5, 2022, and May 19, 2023. Of this total, $8.97 million has already been paid by the creditors.

It is worth noting that McDermott Will & Emery is not the sole legal service provider for Voyager. On June 28, another legal advisor, Kirkland & Ellis, billed Voyager $1.1 million for legal fees incurred in April.

Despite the request for comments from Cointelegraph, McDermott Will & Emery has not yet provided a response.

Voyager Digital filed for bankruptcy in July 2022 amidst a crisis in the crypto lending sector, which resulted in market turmoil and the downfall of several well-established crypto firms such as Celsius and BlockFi.

At the time of filing for bankruptcy, Voyager disclosed liabilities ranging from $1 billion to $10 billion.

The bankruptcy proceedings have imposed substantial legal fees on various crypto firms, including Voyager.

For instance, FTX, another prominent player in the industry, was billed over $120 million in financial and legal advisory fees between February 1 and April 30, 2023.

This indicates the financial burden faced by crypto companies in navigating the complexities of bankruptcy cases and seeking professional legal guidance to handle their affairs.

Submit A Crypto Press Release

In a remarkable turn of events, a cryptocurrency trader has transformed a modest $900 investment into an astonishing $176,000 windfall through an intriguing meme-inspired digital currency called Pepe 2.0 ($PEPE2).

This cryptocurrency appears to be a spin-off of the well-known meme-inspired coin, $PEPE.

$PEPE itself draws inspiration from the infamous meme and cartoon character, Pepe the Frog, and was introduced to the market on April 17, 2023.

Despite concerns regarding the contract owner’s potential ability to manipulate transaction taxes and blacklist functions, $PEPE has experienced an extraordinary surge in its market value.

READ MORE: NFT Blue Chip Collections Plummet to Near Two-Year Lows

It has even secured a place among the top 100 digital assets following listings on various centralized exchanges.

Previously, another fortunate cryptocurrency investor managed to convert a mere 0.125 ETH investment in $PEPE into an astounding $1.14 million in just a matter of days, capitalizing on the right timing.

Now, history appears to be repeating itself with $PEPE2, as an investor on the Ethereum ($ETH) network has swiftly turned $900 into $176,000 within a mere 24 hours.

This remarkable feat was accomplished through over 40 trades, with each trade involving 2 $ETH worth of the newly launched meme-inspired cryptocurrency.

The investor initially acquired 8.3 trillion $PEPE2 tokens on June 28 and sold them later when their value skyrocketed exponentially.

However, caution is advised as Bubblemaps, a data visualization platform, recently revealed that an early adopter, who holds a significant amount of Pepe 2.0, is beginning to offload their assets.

This development could potentially trigger a chain reaction, as this individual wields substantial influence over the asset’s price and possesses a wallet that is directly linked to the deployer.

It is worth noting that this is not the first instance of a trader achieving astounding returns by trading memecoins.

For instance, a trader known as a “meme lord” turned $30,000 worth of digital assets into approximately $450,000 over three years by being an early investor in several memecoins, including popular ones like Shiba Inu ($SHIB) and Pepe Coin ($PEPE).

While trading memecoins can be potentially lucrative, it also carries significant risks that should not be underestimated.

These tokens tend to exhibit high volatility, with their values capable of surging or crashing dramatically within short periods.

Additionally, they often lack the underlying technology or utility that supports more established cryptocurrencies.

Therefore, investors should exercise caution and conduct thorough research before venturing into the world of memecoins, considering both the potential rewards and risks associated with these speculative assets.

Submit A Crypto Press Release

A group of crypto and blockchain advocates has published a report urging the Hong Kong government to introduce a stablecoin linked to the Hong Kong dollar, aiming to challenge the dominance of Tether and USD Coin.

The report, co-authored by prominent individuals in the financial innovation field, proposes the issuance of an HKDG (Hong Kong Dollar Government) stablecoin to bolster the government’s efforts in the digital economy.

The authors, including Wang Yang from the Hong Kong University of Science and Technology, Cai Wensheng, the founder of Meitu, Lei Zhibin, an honorary chair of the Hong Kong Blockchain Association, and doctoral student Wen Yizhou, argue that issuing a stablecoin pegged to the Hong Kong dollar would solidify the region’s leadership in the blockchain sector.

READ MORE: Co-Founders of Collapsed Three Arrows Capital Pledge Donation to Creditors

They believe it would enhance transaction efficiency, reduce costs, improve payment systems, and strengthen Hong Kong’s fintech capabilities.

Additionally, they assert that a Hong Kong Dollar stablecoin would increase the efficiency and inclusiveness of the financial system, provide stability, security, and cross-border liquidity, supporting a broader range of financial innovations.

The authors criticize the government’s current strategy of encouraging private institutions to issue stablecoins pegged to the Hong Kong dollar as “too conservative” in comparison to its crypto and blockchain promotion goals.

The report highlights that Hong Kong’s foreign exchange reserves in March 2023 amounted to approximately $430 billion, surpassing the combined market capitalization of Tether and USD Coin, which stood at around $120 billion.

The proposed HKDG, backed by the government, is deemed to possess higher credibility and lower risk compared to existing stablecoins, particularly given concerns about the credibility of Tether and recent discounts experienced by USD Coin.

The authors outline several potential benefits of launching HKDG, including challenging the dominance of the US dollar, providing additional liquidity for government projects, and facilitating risk assessment by officials.

However, the report acknowledges potential risks, such as legal and regulatory challenges, international disputes related to illicit funding, and hacking incidents.

In June, the Hong Kong government established a task force to oversee the development of Web3.

The region has seen growing interest from over 80 digital asset and blockchain-related companies considering establishing a presence in Hong Kong, in addition to the already existing 800 fintech companies.

Overall, the report recommends the issuance of an HKDG stablecoin by the Hong Kong government to propel the region’s digital economy, enhance financial systems, and bolster its position as a leader in the blockchain sector.

Submit A Crypto Press Release

The meme-inspired cryptocurrency Shiba Inu ($SHIB) has experienced remarkable growth in recent months, with a surge in daily new addresses during the second quarter of this year.

Data from IntoTheBlock, a prominent cryptocurrency analytics firm, reveals that on June 27, the daily new addresses for Shiba Inu exceeded 4,000, marking an astounding 357% increase compared to the 877 new addresses recorded on May 21.

Additionally, Shiba Inu has witnessed a flurry of activity on its layer-2 scaling solution testnet, Shibarium.

The testnet, called Puppynet, recently achieved a significant milestone of 25 million transactions.

PuppyScan, a dedicated block explorer for Shiba Inu’s network, reports that Puppynet processes approximately 270,000 transactions per day, contributing to the overall growth of the ecosystem.

READ MORE: Co-Founders of Collapsed Three Arrows Capital Pledge Donation to Creditors

Earlier this month, CryptoGlobe reported that Puppynet had surpassed 20 million transactions, with around 16 million wallet addresses involved in fund movement on the network.

Since then, the number of wallets on Puppynet has surpassed 17 million, indicating increasing interest and engagement within the Shiba Inu community.

Part of the surge in activity and interest can be attributed to a cryptic message shared by Shytoshi Kusama, the enigmatic lead developer of SHIB.

Kusama, who has played a pivotal role in advancing the development of Shiba Inu, posted a 19-second video clip on Twitter hinting at upcoming developments within the ecosystem.

Crypto analyst Austin Hilton delved into the developments surrounding the Shiba Inu ecosystem, including its associated tokens $BONE and $LEASH, in a recent YouTube video.

Hilton revealed his accumulation of the former token, shedding light on the growing interest among enthusiasts and investors.

Shibarium represents a significant milestone for the Shiba Inu ecosystem, as its native token currently operates on the Ethereum network.

While Ethereum is renowned for its high level of security and decentralization, it faces limitations in terms of scalability and transaction throughput.

The implementation of Shibarium addresses these concerns and paves the way for a more efficient and scalable infrastructure for the Shiba Inu ecosystem.

Overall, Shiba Inu’s explosive growth in daily new addresses and the milestone achieved by the Shibarium testnet highlight the increasing popularity and potential of this meme-inspired cryptocurrency.

Submit A Crypto Press Release

McDermott Will & Emery, the legal firm responsible for representing Voyager’s committee of unsecured creditors, has issued a bill of $5.1 million for their services rendered between March and May.

This latest invoice contributes to a total compensation charge of $16.4 million, surpassing the initial budget of $11.2 million allocated for the restructuring process.

To date, the creditors have disbursed $8.9 million toward the billed compensation.

Among the notable billings from McDermott attorneys during this period, $1 million was charged for 970.9 hours of work on plan and disclosure settlement.

This particular task involved engaging in discussions about potential sale options with the Debtors, meeting potential buyers, and reviewing objections presented by other stakeholders.

READ MORE: Co-Founders of Collapsed Three Arrows Capital Pledge Donation to Creditors

It is worth noting that in previous billing periods, considerable efforts were dedicated to a potential asset sale to FTX, a deal that ultimately fell through with the exchange’s bankruptcy.

Furthermore, in addition to the fees incurred by McDermott Will & Emery, Voyager, the debtor, has also paid $1.1 million to the law firm Kirkland & Ellis for their representation throughout this case.

The market downturn experienced in 2022 led to a surge in bankruptcy filings, which proved to be lucrative for law firms.

Notably, firms such as FTX and Celsius have spent over $200 million and $50 million, respectively, on legal fees.

Critics of this situation argue that these exorbitant costs and lengthy legal processes have a detrimental effect on the funds available to creditors.

As more money is allocated to legal fees, the amount recoverable by creditors diminishes.

In summary, McDermott Will & Emery has presented a bill of $5.1 million to Voyager’s committee of unsecured creditors for their services rendered between March and May.

This brings the total compensation charged to $16.4 million, exceeding the initial budget. Additional expenses incurred by Voyager include a $1.1 million payment to Kirkland & Ellis.

While the legal industry has profited from the surge in bankruptcies, critics contend that the substantial costs and protracted legal proceedings adversely impact creditors’ potential recoveries.

Submit A Crypto Press Release

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has unveiled new measures to enhance investor protection and market integrity within the cryptocurrency sector.

The MAS recently announced that crypto service providers will be required to hold customer assets in a statutory trust by the end of the year, effectively mitigating the risk of asset loss or misuse and facilitating asset recovery in the event of insolvency.

These custody measures were developed following a public consultation launched in October 2022, which aimed to identify regulatory measures to minimize risks associated with crypto trading.

The MAS received substantial interest from a diverse range of respondents during the consultation process.

READ MORE: Gemini CEO Threatens Legal Action Against DCG Over Delayed Funds

In response to the consultation, the central bank highlighted that a majority of respondents agreed that digital payment token service providers (DPTSPs) should be allowed to pool user assets in the same trust account.

However, some respondents argued that DPTSPs should be required to segregate each customer’s assets in separate blockchain addresses to enhance transparency and verification of holdings.

In addition to custody requirements, the MAS mandated that crypto companies perform daily reconciliation of customer assets and maintain accurate books and records.

DPTSPs must also ensure operational independence of the custody function from other business units and maintain access and operational controls to customers’ digital payment tokens in Singapore.

Furthermore, the MAS is considering a proposal to restrict crypto service providers from facilitating lending or staking of retail customers’ digital payment tokens, while allowing such activities for institutional and accredited investors.

Respondents offered varied suggestions, with some advocating for explicit consent and risk disclosures from retail customers, while others proposed a complete ban on these high-risk and speculative activities.

The MAS emphasized its commitment to monitoring market developments and consumer risk awareness, stating that it would take appropriate steps to ensure the ongoing balance and suitability of its regulatory measures.

These new investor protection measures aim to address industry incidents like the FTX implosion, which resulted in substantial losses for customers.

Furthermore, Singaporean firms were significantly impacted by the crypto lending crisis in 2022, with notable local entities, including Three Arrows Capital and Hodlnaut, going bankrupt during the bear market.

By implementing these measures, Singapore’s central bank seeks to bolster investor confidence and establish a robust framework that safeguards customers’ assets while promoting responsible practices within the cryptocurrency industry.

Submit A Crypto Press Release