The deal was first finalized in August, with Anchorage as another party agreeing to an equity stake in the bankrupt crypto miner.

Cryptocurrency mining hardware maker Bitmain and bankrupt crytpto mining firm Core Scientific have agreed on a combination of equity and cash to finalize the deal on the expansion of mining facilities.  

The deal between the two mining companies will see Bitmain supply 27,000 Bitcoin (BTC) mining rigs for $23 million in cash along with $53.9 million worth of common stock of the bankrupt firm. Apart from the mining hardware purchase deal, Bitmain and Core Scientific have signed a new hosting arrangement to assist Bitmain's mining operations.

The deal was finalized earlier last month when a court filing highlighted Bitmain’s plan to sell mining hardware in exchange for cash and equity as part of Core Scientific’s restructuring plan. Apart from Bitmain, the restructuring plan also included Anchorage, BlockFi and Mass Mutual Asset Finance. Apart from Anchorage, all other three firms chose a mix of cash and equity options to settle their claims.

Related: Core Scientific appoints Adam Sullivan as CEO amid restructuring process

The expansion and investment plan by Bitmain will come into force by the fourth quarter of this year pending approval from a judge slated for the final quarter. Once approved, the added hardware will potentially add 4.1 exahashes to Core Scinfitic’s hash rate. The two crypto mining focused companies have also agreed to work together to upgrade Bitmain’s last-generation miners hosted at Core Scientific’s data centres to increase the firm's productivity further.

Core Scientific filed for Chapter 11 bankruptcy in December 2022, citing the financial crisis and declining price of Bitcoin as the key reasons behind their decision. The firm started facing trouble in the weeks leading upto its eventual collapse in December owing to the market turmoil.

Magazine: Get your money back: The weird world of crypto litigation

Read More

The report highlighted that Bitcoin mining can convert wasted methane emissions into less harmful emissions.

A paper published by the Institute of Risk Management (IRM) concluded that Bitcoin (BTC) has the potential to be a catalyst for a global energy transition. 

IRM Energy and Renewables Group members Dylan Campbell and Alexander Larsen published a report called “Bitcoin and the Energy Transition: From Risk to Opportunity.” The paper argued that while BTC was perceived as a risk because of its energy consumption, it can also become a catalyst for energy transition and could lead to new solutions for energy challenges across the globe.

Within the report, the authors also highlighted the important function of energy and the increasing need for reliable, clean and more affordable sources of energy. Despite the criticisms of Bitcoin's energy intensity, the study provided a more balanced view of Bitcoin by also showing the potential benefits that BTC can bring to the energy industry.

According to the report, Bitcoin mining can reduce global emissions by up to 8% by 2030. This can be done by converting the world’s wasted methane emissions into less harmful emissions. The report cited a theoretical case saying that using captured methane to power Bitcoin mining operations can reduce the amount of methane vented into the atmosphere. 

Related: Bitcoin energy pivot achieves what ‘few industries can claim’ — Bloomberg analyst

The paper also presented various other opportunities that allow Bitcoin to contribute to the energy sector. According to the report, Bitcoin can also contribute to energy efficiency through electricity grid management by using Bitcoin miners and transferring heat from miners to greenhouses.

“We have shown that while Bitcoin is a consumer of electricity, this does not translate to it being a high emitter of carbon dioxide and other atmospheric pollutants. Bitcoin can be the catalyst to a cleaner, more energy-abundant future for all,” the authors wrote.

Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in

Read More

The bankrupt crypto exchange FTX has opened a lawsuit against former employees of a Hong Kong affiliate company Salameda to recover $157.3 million.

The defunct cryptocurrency exchange FTX filed a lawsuit on Sept. 21 against former employees of Hong Kong-incorporated company Salamde affiliated with the FTX group, according to court documents. 

The court filing says FTX seeks to recover $157.3 million that it claims was fraudulently withdrawn in the timespan leading up to the exchange filing for bankruptcy.

According to the filing, Michael Burgess, Matthew Burgess, Lesley Burgess - the mother of Michael and Matthew, Kevin Nguyen and Darren Wong, along with two companies allegedly had ownership of companies with registered accounts and FTX.com and FTX US and were able to withdraw funds in the “preference period” prior to the actual bankruptcy filing.

The court filing reads:

“Each of these transfers to Defendant Michael Burgess was made with the intent to hinder, delay or defraud FTX US’s present or future creditors.”

It continues to point out that these transfers were completed hours prior to FTX halting all non-fiat user withdrawals on Nov. 8, 2022.

The allegations include that Mathew Burgess pressured FTX employees to “push out” particular pending withdrawal requisitions “from one of Michael Burgess’s FTX US exchange accounts, while misrepresenting the account to be his own.” It cited messages on the Slack application.

Related: Binance and CEO Changpeng Zhao ask court to dismiss SEC suit

This development comes as Sam Bankman-Fried (SBF), the former FTX CEO, sits in jail awaiting the first of his two-part trial, which is set to begin on Oct. 3, 2023. The second trail is anticipated for March 2024. 

On Sept. 21 judges decided against granting SBF early release from jail. He argued he couldn’t adequately prepare for trial from jail and said it violated his First Amendment Rights under the United States constitution.

However, on the same day, Judge Lewis Kaplan granted a motion proposed by the Department of Justice (DOJ) that bars testimony of SBF’s key witnesses.

Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in

Read More