Auction

FDIC to attempt another auction of Silicon Valley Bank: Report

Regulators are planning another auction for Silicon Valley Bank after the previous attempt to find a new owner failed.

Silicon Valley Bank (SVB) could be returning to the auction block with United States regulators taking a second attempt at finding a buyer for the now-collapsed bank. 

According to a March 13 report from The Wall Street Journal, the Federal Deposit Insurance Corporation told Senate Republicans that they now have additional flexibility to sell the bank after regulators declared the SVB collapse a threat to the financial system.

The regulators first attempted an auction of the fallen bank on March 11, only a day after its closure. Bids were only open for a few hours.

However, the weekend auction reportedly saw no bids from major U.S. banks. There was at least one offer made by another institution — but that was declined by the FDIC.

With SVB declared “systemic,” the FDIC has more leeway to offer incentives for bidders to buy the firm, such as loss-sharing agreements, according to the WSJ. However, a timetable has yet to be set for the second auction.

The FDIC is an independent agency of the United States Government created to protect bank depositors from losing their insured deposits when a bank fails; it also helps with the institution’s bankruptcy process, selling off assets and settling debts.

Related: Silicon Valley Bank collapse: Everything that’s happened until now

California’s financial watchdog shut down Silicon Valley Bank on March 10 after announcing a significant sale of assets and stocks to raise $2.25 billion in capital and shore up operations.

Global banking giant HSBC has already come to the rescue of the United Kingdom-based branch of SVB, announcing on March 13 that its subsidiary, HSBC UK Bank, is acquiring Silicon Valley Bank UK for 1 British pound ($1.21).

Nifty News: Jimmy Fallon wants exemption from BAYC trademark case

Jimmy Fallon wants out of the BAYC trademark case, while Blur is responsible for the NFT market’s three-month high.

Lawyers for Jimmy Fallon, star of NBC’s long-running comedy and variety series The Tonight Show, have filed a petition to “quash”  a subpoena requiring him to testify in the Yuga Labs Inc. v. Ripps et al. case. 

The lawyers claim that Fallon has no connection to the dispute, is not a party to the Ripps litigation, and has never met or interacted with Ryder Ripps, creative director of OKFocus or Jeremy Cahen, one of the founders of the alleged Bored Ape Yacht Club (BAYC) “copycat.”

Yuga Labs is suing Ryder Ripps and Jeremy Cahen for issuing a “copycat” nonfungible token (NFT) collection that resulted in trademark infringement, false advertising and unfair competition. The ongoing case has highlighted intellectual property and trademark rights within the NFT space.

While Fallon acquired a Bored Ape Yacht Club NFT and talked about it on his show, he has nothing to do with the Yuga Labs and Ripps case, according to the petition.

Fallon is also a co-defendant with Paris Hilton in a separate securities litigation involving Yuga Labs.

Getty Images and Candy Digital to sell NFTs from Archives

Getty Images is partnering with NFT platform Candy Digital to offer rare photos in NFT form, starting with photographs from its 1970s music and culture collection.

In a tweet, Candy Digital revealed that the collection includes works by Don Paulsen, David Redfern and other photographers depicting iconic figures like Elvis, David Bowie and The Rolling Stones.

Photos from the recording 70’s image collection

The NFTs will be available for purchase on Candy Digital’s website starting on March 21, with prices ranging from $25 to $200. The release will be available to buyers in several countries, including the United States, the United Kingdom and Japan.

This partnership comes as the NFT market shows signs of growth, with marketplace volume increasing for the fourth consecutive month in February.

Forkast launches NFT price tracker indices

Forkast Labs, a data intelligence service formed by the merger of Forkast.News and NFT market tracker CryptoSlam, has launched a series of NFT indexes to provide real-time insights into the digital asset economy.

The Forkast 500 NFT index will measure performance across 21 blockchains, including Ethereum, Solana, Polygon and Cardano, and is designed to be a proxy of the entire NFT market.

Forkast 500 NFT index tracks the performance of the global NFT market.

The indexes aim to provide a more comprehensive measure of the health of the NFT economy, which is difficult to discern using traditional market rankings based on prices, sales and transaction volumes.

NFT market hits 3-month high as Blur responsible for high trades

The NFT market is experiencing a bullish trend, according to data derived from NFT tracker CryptoSlam, reaching a 3-month high for the second consecutive day with over 125,000 trades in the past 24 hours. Trading surpassed $2.04 billion last month, up 117% from $941 million in January.

Related: The metaverse is getting a greenhouse and garden full of NFT flowers

This growth is due to Blur, an evolving market that surpassed OpenSea in trading volume just this month.

Blur’s trading volume jumped over $1.13 billion in February from the month prior, a statistic that accounts for almost all of the entire NFT market’s month-over-month gains.

Yuga Labs’ first Bitcoin NFT auction nets $16.5M in 24 hours

The highest of the 288 bidders forked out just over 7 BTC for one of the 288 Bitcoin Ordinals-based NFTs up for auction.

The auction for Yuga Labs’ inaugural Bitcoin Ordinal nonfungible token collection has ended, netting the firm $16.5 million in just 24 hours. 

A total of 288 bidders won one of the Bitcoin NFTs from the “TwelveFold” collection. Yuga said the winners will receive their inscription within one week, while the unsuccessful bids will have their bid amount returned within 24 hours.

The auction yielded 735 Bitcoin (BTC) worth an estimated $16.5 million at current prices. The highest of the 288 bidders paid just over 7 BTC or $161,000 for one of the pieces.

Top 10 bids leaderboard. Source: TwelveFold
Bottom ten bids, the lowest won #288. Source: TwelveFold

Yuga announced the collection in late February, describing it as a “base 12 art system localized around a 12×12 grid, a visual allegory for the cartography of data on the Bitcoin blockchain.”

TwelveFold #1 won by the highest bidder. Source: Yuga Labs

It comprises a limited edition collection of 300 generative pieces inscribed on Satoshis on the BTC network. The lucky winners were eager to share their new NFTs online:

Related: Nifty News: Yuga Labs jumps on Ordinals hype

As reported by Cointelegraph, Yuga Labs received backlash over the weekend from the crypto community, which identified flaws in how Yuga conducted the auction for the Ordinals collection.

FTX customers want more info on FTX’s plans to sell subsidiaries

While the group of 18 customers does not want to prevent the sales from occurring, it argued it needs to be involved to ensure that customers’ interests are represented.

A group of FTX customers has filed a limited objection to FTX’s plan to sell four independently operated subsidiaries, arguing that they should be privy to the sales process to ensure that customer interests are represented. 

The group has also shared concerns that “misappropriated customer funds” may have been used to acquire or keep these firms running.

The limited objection was filed on Dec. 4 by an ad hoc committee of non-U.S. customers, which comprises 18 members who collectively have claims against FTX in excess of $1.9 billion.

In its filing, the committee argued that previous public statements by FTX, the Securities and Exchange Commission and the Commodity Futures Trading Commission make clear that the customer assets on the platform belong to customers and not FTX.

It said there were “significant concerns over the lack of information regarding sale of the businesses,” and also questioned whether the businesses may be “necessary to a potential restart” of FTX.

A limited objection is similar to an objection except it only applies to a specific part of the proceedings. In this instance, the limited objection is due to the exclusion of the ad hoc committee from the sale process.

The committee has asked the judge to allow them to serve as “consulting professionals” so that they can ensure customers’ interests are represented throughout the bidding process, adding:

“The Ad Hoc Committee does not seek to stand in the way of value-maximizing transactions that the Debtors may pursue, so long as the interests of FTX.com customers are protected.”

Under the proposed bid procedures, only consulting professionals will be able to attend the auction and consult with FTX on matters relating to the sale process, and the committee notes that the consultation parties have no control of the process outside of being able to provide counsel.

Related: US authorities are seizing $460M in Robinhood shares tied to FTX: Report

On Dec. 15, FTX had asked the bankruptcy court to allow them to sell off its European and Japanese branches, in addition to derivatives exchange LedgerX and stock-clearing platform Embed.

LedgerX in particular has been hailed as a success story during the bankruptcy proceedings, with Commodity Futures Trading Commission Chairman Rostin Behnam noting that the firm had essentially been “walled off” from other companies within FTX Group, and “held more cash than all the other FTX debtor entities combined.”

Last week, the same committee asked for customers’ names and private information to be redacted from court documents, suggesting that customers could be exposed to identify theft, targeted attack and “other injury.”

Celsius amasses 30 potential bidders for its assets, withdrawal motion approved

The bankrupt lender is set to hold auctions for its assets in January, while it’s been given the green light to return some customer funds.

Bankrupt crypto lender Celsius Network has attracted 30 potential bidders for its various assets, including its retail platform and mining business.

According to a company presentation filed on Dec. 20, more than 125 parties have been contacted since September, with 30 potential bidders executing non-disclosure agreements — a legal contract used to protect sensitive information about a company or the bidding terms that is typically required during negotiations.

Celsius said that so far, it has received multiple bids proposing a variety of potential transactions and business structures to acquire its assets — such as migrating Celsius customers to the acquirer’s platform along with a haircut of their assets .

The lending platform also revealed it had received a number of single asset bids.

With the bidding deadline reached on Dec. 12, the auction for Celsius’ various assets is now set for Jan. 10, after being pushed back from the original date of Dec. 15, according to earlier documents filed by Celsius.

Amended dates for bidding procedures as per Celsius court filings on Dec. 15. Source: Stretto

The latest presentation notes that as of Nov. 25, the company held crypto valued at approximately $2.6 billion, but even after this is combined with all of its non-crypto assets, Celsius is still $1.2 billion short of being able to pay off all debts.

Its ongoing mining operations have been successful, however, with Celsius claiming that it has generated positive operating cash flow every month this year as it continues to deploy more mining rigs.

Related: BlockFi files motion to return frozen crypto to wallet users

In related news, on Dec. 20 bankruptcy judge Martin Glenn granted a motion filed by Celsius on Sept. 1, allowing them to reopen withdrawals for a minority of their customers.

The assets eligible to be withdrawn are those that were only ever held in the Custody Program; for amounts less than $7,575; and for funds that were transferred from Earn or Borrow Programs into the Custody program within 90 days of Celsius filing for bankruptcy on July 13.

The order also applies to “ineligible Withhold Assets,” with assets included in this definition to be determined following meetings between Celsius, the Withhold Ad Hoc Group and the Celsius Official Committee of Unsecured Creditors.

CrossTower revises new offer for Voyager’s assets after FTX’s bankruptcy

Voyager reopened its bidding process after FTX US, the original winner, filed for bankruptcy on Nov. 11.

Crypto exchange CrossTower is working on a revised offer for the assets of bankrupt crypto lender Voyager Digital, a spokesperson told Cointelegraph. Voyager announced the reopening of its bidding process after FTX US, the original winner in the bid, filed for bankruptcy in the United States on Nov. 11.

“We are working on a revised offer that we feel will benefit the Voyager customers and the wider Crypto community. CrossTower has always been, and will continue to be, very community-focussed.”, the spokesperson said, without specifying an amount.

In September, FTX US secured the winning bid for the assets for approximately $1.4 billion, according to Voyager. The assets’ sale would be completed after a chapter 11 plan and an asset purchase agreement approved by the U.S. Bankruptcy Court for the Southern District of New York.

In the statement disclosed on Nov. 11, Voyager said that “the no-shop provisions of the Asset Purchase Agreement between Voyager and FTX US are no longer binding.”, adding that the bidding process was reopened, and the bankrupt company was in “active discussions with alternative bidders.”

According to the CrossTower spokesperson, the company is currently not aware of other players participating in the bidding process.

“We’re not aware of any other interest at the moment, but even if other players enter the ring, CrossTower’s priority is to ensure the best interest of the Voyager customers and the wider crypto community.”

As previously reported by Cointelegraph, along with FTX, Binance and CrossTower submitted bids to acquire Voyager’s assets, each proposing their own terms and conditions. 

CrossTower proposed keeping the existing Voyager platform and app, meaning that customers won’t have to switch platforms once the deal was closed. As part of this plan, customers would also receive their pro rata share of assets. Additionally, CrossTower’s acquisition plan would see the exchange share its revenue with Voyager customers for several years.

Although the new bidding terms are not confirmed, CrossTower spokesperson suggested that a similar proposal would be underway:

“Voyager has an incredibly loyal and engaged customer base, and it had a healthy business. We believe that the Voyager foundation can be built upon.”

In the statement about the bidding, Voyager also confirmed its exposure to the FTX collapse, with a “balance of approximately $3 million at FTX, substantially comprised of locked LUNA2 and locked SRM that it was unable to withdraw because they remain locked and subject to vesting schedules.”

Voyager also claimed that it did not transfer any assets to FTX in connection with the sale agreement. FTX US previously submitted a $5 million “good faith” deposit as part of the auction process, which is held in escrow.

CrossTower revises new offer for Voyager’s assets after FTX’s bankruptcy

Voyager reopened its bidding process after FTX US, the original winner, filed for bankruptcy on Nov. 11.

Crypto exchange CrossTower is working on a revised offer for the assets of bankrupt crypto lender Voyager Digital, a spokesperson told Cointelegraph. Voyager announced the reopening of its bidding process after FTX US, the original winner in the bid, filed for bankruptcy in the United States on Nov. 11.

“We are working on a revised offer that we feel will benefit the Voyager customers and the wider Crypto community. CrossTower has always been, and will continue to be, very community-focussed,” the spokesperson said, without specifying an amount.

In September, FTX US secured the winning bid for the assets for approximately $1.4 billion, according to Voyager. The assets’ sale would be completed after a Chapter 11 plan and an asset purchase agreement approved by the U.S. Bankruptcy Court for the Southern District of New York.

In the statement disclosed on Nov. 11, Voyager said that “the no-shop provisions of the Asset Purchase Agreement between Voyager and FTX US are no longer binding,” adding that the bidding process was reopened, and the bankrupt company was in “active discussions with alternative bidders.”

According to the CrossTower spokesperson, the company is currently not aware of other players participating in the bidding process:

“We’re not aware of any other interest at the moment, but even if other players enter the ring, CrossTower’s priority is to ensure the best interest of the Voyager customers and the wider crypto community.”

As previously reported by Cointelegraph, along with FTX, Binance and CrossTower submitted bids to acquire Voyager’s assets, each proposing their own terms and conditions. 

CrossTower proposed keeping the existing Voyager platform and application, meaning that customers won’t have to switch platforms once the deal was closed. As part of this plan, customers would also receive their pro rata share of assets. Additionally, CrossTower’s acquisition plan would see the exchange share its revenue with Voyager customers for several years.

Although the new bidding terms are not confirmed, CrossTower spokesperson suggested that a similar proposal would be underway:

“Voyager has an incredibly loyal and engaged customer base, and it had a healthy business. We believe that the Voyager foundation can be built upon.”

In the statement about the bidding, Voyager also confirmed its exposure to the FTX collapse, with a “balance of approximately $3 million at FTX, substantially comprised of locked LUNA2 and locked SRM that it was unable to withdraw because they remain locked and subject to vesting schedules.”

Voyager also claimed that it did not transfer any assets to FTX in connection with the sale agreement. FTX US previously submitted a $5 million “good faith” deposit as part of the auction process, which is held in escrow.

Voyager’s auction did not serve depositors’ best interests, alleges Wave Financial rep

According to the Los Angeles management firm, “better bids were on the table” for depositors and the community.

The assets of crypto brokerage firm Voyager Digital would face a drastically different fate if FTX did not win the bid, claimed a spokesperson of Wave Financial while speaking to Cointelegraph. The spokesperson argued that better bids were on the table, but they “were passed over for strictly cash offers.”

Wave, an SEC-registered digital asset management company with over $1 billion in assets under management (AUM), participated in the auction process, bidding a slightly lower amount than FTX for the assets. FTX secured the winning bid with an amount of $1.4 billion, which must now be approved by the U.S. Bankruptcy Court.

Wave defended its proposal as the only one seeking to maintain the Voyager brand and create a new exchange model that caters to the crypto community, regardless of the financial difference in the bid.

Related: FTX US wins auction for Voyager Digital’s assets

In particular, Wave’s proposal sought to “restore value in the VGX token via new and improved utility, saving $200M worth of funds and redistributing assets back to existing Voyager customers,” and “extend a revenue share program to depositors through the new exchange model, driven by the liquidity and community of leading layer-1 protocols who joined as investors and minority owners.” A Wave spokesperson also noted that:

“Wave was the only remaining bidder during the blind auction process (held the week of September 12 in NYC) that took a “white knight” approach, prioritizing the depositors’ financial interests by restoring value in the VGX token and creating a long-term revenue sharing model — both of which returned substantial equity directly to depositors.” 

Following the winning bid, FTX provided limited information regarding how Voyager customers will be able to access their crypto holdings. According to Voyager, information regarding crypto access will be shared as it becomes available.

On July 5, Voyager filed for Chapter 11 bankruptcy, a process that allows firms to retain ownership of their assets and continue operating while they restructure or sell the company, following an insolvency worth over $1 billion after crypto hedge fund Three Arrows Capital (3AC) defaulted on a $650 million loan.

FTX US wins auction for Voyager Digital’s assets

Voyager hints that its customers will eventually transition to the FTX platform after it finishes its Chapter 11 bankruptcy proceedings.

Cryptocurrency exchange FTX US has secured the winning bid for the assets of crypto brokerage firm Voyager Digital, to be approved by the United States Bankruptcy Court, with a bid valued at approximately $1.4 billion, according to Voyager.

Voyager said the bid was made up of the fair market value of its crypto holdings “at a to-be-determined date in the future” estimated to be around $1.3 billion along with $111 million of what it says is “incremental value,” but did not provide further details.

Little information was given regarding what will happen to Voyager customers still awaiting access to their crypto holdings, with Voyager stating additional information about crypto access “will be shared as it becomes available.”

Voyager only mentioned that the FTX US platform “will enable customers to trade and store cryptocurrency after the conclusion of the company’s chapter 11 cases.“

Cointelegraph contacted FTX and Voyager Digital for further comment but did not immediately hear back.

The sale of the assets is set to be completed after a chapter 11 plan, and an asset purchase agreement is submitted for approval by the U.S. Bankruptcy Court for the Southern District of New York on Oct. 19.

Cointelegraph earlier reported that crypto platforms Binance and CrossTower also submitted bids alongside FTX to acquire Voyager’s assets, each proposing their own terms.

A source claimed Voyager customers would receive their pro rata share of crypto assets and transition to the FTX platform if its bid was successful.

Related: Sam Bankman-Fried denies report FTX plans to purchase stake in Huobi

Voyager entered into a Chapter 11 bankruptcy on July 5, sometimes called a “reorganization” bankruptcy, it allows a firm to retain control of its assets and continue operating whilst it plans to restructure or sell the business.

The filing was for an insolvency worth over $1 billion after crypto hedge fund Three Arrows Capital (3AC) defaulted on a $650 million loan from the firm, Voyager says its claims against 3AC remain with the bankruptcy estate.

The company maintains its chapter 11 filing was “aimed at returning maximum value to customers” and also considered a reorganization, but stated the sale to FTX US was the “best alternative for Voyager stakeholders.”

NFTs are a ‘natural place’ for digital artists — Gal Yosef

After launching successful nonfungible token collections, the digital artist has set his sights on metaverse NFTs, believing they will become an important market in the future.

The hype surrounding nonfungible tokens, or NFTs, may have died down in recent months due to the crypto bear market, but that hasn’t stopped digital artists from experimenting in the new and exciting space. Gal Yosef, a globally renowned self-taught artist in the field of 3D art and animation, has proven his versatility by launching two successful NFT collections. In an exclusive interview with Cointelegraph, Yosef explained why NFTs are a “natural” transition for digital artists and why the industry is poised to grow despite current headwinds.

Yosef, who successfully launched his Meta Eagle Club NFT collection in January, explained to Cointelegraph why nonfungible artwork is so appealing:

“I think that the NFT has given massive exposure to all the digital artists mostly because it’s a very natural place for us.”

Specializing in cartoon-style avatars, Gal Yosef’s digital artwork is known for being extremely detail-oriented and life-like. Source: @galyosef Instagram

Approaching NFT art versus other forms of digital art

NFTs are a natural transition for digital artists because the vertical is “not a category by itself.” Rather, as Yosef explained, NFTs are “exactly the same art for me, exactly like I’m doing all the time and exactly like I always did just listed in other [platforms].” He said the art world is changing along with NFTs and “giving us a new platform to express ourselves.”

Yosef’s foray into the NFT market began in 2021 when he launched the Crypto Bulls Society collection. The collection reportedly generated over $50 million through primary sales and auctions. A one-of-a-kind NFT created in collaboration with American record producer Steve Aoki netted Yosef $214,000 at Sotheby’s auction.

When asked whether there were any learning curves in launching an NFT collection, Yosef said the only unknown was the market dynamics of the new industry. “I wasn’t sure what really [controlled] the outcome, then I realized it’s all based on the community; the art can be as beautiful as possible, but without good community, the artwork will not [succeed].”

Metaverse: The future?

In describing his first few encounters with the NFT world, Yosef said the broader blockchain industry, and specifically metaverse technology, could be “the next big thing.”

“[I am] looking to put my signature on it and make some big things,” he said without elaborating further.

Related: NFT market worth $231B by 2030? Report projects big growth for sector

While the existing metaverse industry has been described as “basic and weird” due to nascent technology and adoption, it’s expected to have a profound impact on gaming, social interaction and art. Some technologists and venture capitalists believe that the marriage between metaverses and NFTs is inevitable — and that metaverse NFTs will power the next growth cycle in digital collectibles.

NFT sales volumes peaked in 2021 during the height of crypto mania, with the likes of Bored Ape Yacht Club and CryptoPunks generating billions of dollars in lifetime revenue. Although the market is in a cooling phase, rumors of its death have been overstated, according to industry data aggregator DappRadar. NFT sales volumes were a healthy $3.7 billion in May. While activity has continued to fall during the summer, the arrival of major brands such as Tiffany & Co reveals that many companies are strategically pivoting into the NFT market.