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Ripple claims over $11.4 million in FTX bankruptcy case

TL;DR

  • Ripple Labs Singapore Pte. Ltd, a subsidiary of Ripple, claims over $11.4 million in the ongoing FTX bankruptcy case, marking the largest disclosed sum among creditors.
  • NBA legend Shaquille O’Neal and his company ABG-Shaq, LLC are also involved as claimants, with a potential $750,000 endorsement contract with FTX.
  • Avalanche (BVI), Inc., linked to the Avalanche (AVAX) blockchain platform, adds further complexity as a claimant, raising questions about the impact of U.S. regulatory attitudes on alternative coins.

Ripple Labs Singapore Pte. Ltd., a subsidiary of the U.S. fintech giant Ripple, has emerged as a major creditor in the ongoing FTX bankruptcy case. The claim, amounting to a substantial $11.4 million, stands out as the largest among those disclosed in

FTX bankruptcy reveals unlikely creditors

The disclosure came to light through a document that dismissed duplicate non-client-related claims by FTX debtors. This document, authorized by United States Bankruptcy Judge John T. Dorsey and issued by Kroll, the creditor claims administrator in the FTX case, sheds light on the intricate financial web surrounding the collapsed exchange.

Notably, Ripple Labs is not the sole prominent player in this legal saga. Joining the fray is Avalanche (BVI), Inc., a firm associated with basketball legend Shaquille O’Neal and the blockchain platform Avalanche (AVAX). The involvement of such diverse entities highlights the complexity of FTX’s creditor landscape.

Ripple’s subsidiary takes center stage

Ripple Labs Singapore Pte. Ltd.’s claim of over $11.4 million marks a significant development, positioning the fintech heavyweight as a key player in resolving FTX’s financial woes. The document also unveils the sophisticated legal structures of the involved firms, with speculation arising about potential links to U.S. regulatory sentiments towards alternative coins.

Simultaneously, the claimant list includes NBA icon Shaquille “Shaq” O’Neal, recognized individually and as ABG-Shaq, LLC—a Delaware limited liability company associated with his personal services. Reports suggest O’Neal might have secured a $750,000 endorsement contract with FTX, adding a layer of complexity to the overall scenario.

Avalanche (AVAX) enters the fray

Adding to the intrigue is the presence of Avalanche (BVI), Inc., which is affiliated with the blockchain platform Avalanche (AVAX). This revelation underscores the diverse range of entities affected by FTX’s bankruptcy, expanding beyond traditional financial players to blockchain platforms.

While there are discussions about restarting the exchange under the name FTX 2.0, the lack of a clear timetable complicates predictions about its operational future. Some experts argue that FTX’s cryptocurrency assets might outweigh its liabilities, potentially allowing for a revival.

Conclusion

As the FTX bankruptcy case unfolds, the involvement of Ripple Labs Singapore Pte. Ltd., Shaquille O’Neal, and Avalanche (BVI), Inc. adds unexpected dimensions to the proceedings. The staggering $11.4 million claim by Ripple’s subsidiary underscores the intricate connections within the cryptocurrency and blockchain ecosystem. With the fate of FTX hanging in the balance, the cryptocurrency community watches closely for further developments in this financial narrative.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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