Bankruptcy

Mt. Gox

2026-10-20 10:20:13

Mt. Gox extends creditor repayment deadline to Oct. 2027

Mt. Gox has pushed back its creditor repayment deadline by another year, moving the cutoff for base, early lump-sum and intermediate repayments from Oct. 31, 2026 to Oct. 31, 2027 after approval from the Tokyo District Court. Rehabilitation trustee Nobuaki Kobayashi said creditors who completed the required procedures without issues have largely been repaid, aside from certain payment types, but many others are still waiting because they have not finished the process or ran into payment processing problems. The move marks the sixth extension since 2023, including four since September 2023. Mt. Gox began repaying creditors in Bitcoin and Bitcoin Cash in July 2024, and said in March 2025 that more than 19,500 creditors had received repayments. The latest trustee notice did not say how many creditors remain unpaid or how much Bitcoin is still left to distribute. According to Arkham Intelligence data as of Tuesday, wallets attributed to Mt. Gox still held about 34,400 BTC worth roughly $2.8 billion.

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Character.AI

2026-10-19 14:53:27

Character.AI files for bankruptcy as Disney moves to acquire team and technology

Character.AI said this week that it has filed for bankruptcy, a step court filings describe as central to a Disney deal. The structure would allow Disney to hire most of Character.AI’s staff, including former CEO Karandeep Anand, and potentially acquire most of the startup’s technology. The arrangement could also help Disney avoid taking on a range of lawsuits and obligations tied to Character.AI. The company has faced multiple private lawsuits in recent years over chatbot safety, along with scrutiny from regulators around the world. In the bankruptcy declaration, Character.AI’s new CEO said the filing is intended to reach a "negotiated resolution" for personal injury claims and multistate investigations while maximizing the value of the company’s assets for shareholders. The filing frames the bankruptcy process not simply as a shutdown, but as part of a transaction structure tied to Disney’s hiring and potential technology acquisition.

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Character.AI

2026-10-19 03:45:01

Bankruptcy filing shows Disney planned $180 million talent package as Character.AI shrank to 18 staff

Court documents tied to Character.AI’s bankruptcy show Disney had already moved to hire much of the company’s workforce before the filing. Disney sent job offers to 66 employees, with 56 already gone and another 10 waiting for visa adjustments. Over the next three years, Disney expects to spend about $180 million on that group, including $30 million in retention bonuses. The filing also draws a sharp contrast between the value Disney placed on personnel and the price attached to certain company assets. Disney offered $20 million for permanent, non-exclusive rights to parts of Character.AI’s technology and patents. The deal does not include the existing app, the brand, user chat logs, or finished models, indicating Disney is not seeking to acquire and run the full chatbot platform. By the time Character.AI entered bankruptcy, it had only 18 full-time employees left. Of those, 10 were still waiting to move to Disney, and the company expected just eight to remain through the critical stages of the bankruptcy process, including roughly six handling security work. The case has also drawn intervention from 40 state attorneys general in the U.S., who want safeguards for private user chats as assets are sold. Other bidders have until Nov. 20 to submit offers. If no buyer is willing to keep the service running, Character.AI will shut down.

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Prime Trust

2026-10-16 17:09:03

Prime Trust estate wins $9 million default judgment against Justin Sun-owned Poloniex

The Prime Trust estate has secured a $9 million default judgment against Polo Digital Assets LTD, the firm that operates Poloniex and is identified in the report as being owned by Justin Sun. The case stems from an adversary proceeding tied to transfers made before Prime Trust entered bankruptcy. According to the report, Prime Trust had moved more than $9 million to Poloniex and Sun after deciding to end its relationship with Sun-linked entities because an SEC lawsuit against Sun was still active at the time, though that case was later dropped. Prime Trust later entered bankruptcy after what the report describes as deep insolvency tied to failures in safeguarding crypto assets and the use of customer deposits in an attempt to cover the shortfall. The report also notes that Prime Trust used $82 million in customer funds to buy Terra and Ether. For now, the default judgment applies only to Polo Digital Assets LTD, while the estate is still seeking discovery related to Sun personally. The report also says the FTX estate has filed adversary claims against Sun-owned HTX and Poloniex, as well as Sun himself.

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Character.ai

2026-10-14 07:01:02

Character.ai affidavit shows $8 million to $9 million in monthly losses as compute costs dominate spending

Character.ai’s bankruptcy affidavit lays out a business that was growing revenue quickly but still losing money at a steep pace. In a filing submitted by CEO Colin Adams to the Delaware bankruptcy court, the company said it generated about $5.3 million in revenue in August 2026, while operating expenses excluding legal fees were about $13.3 million. That left monthly operating losses in the range of $8 million to $9 million. The filing shows compute was the company’s biggest cost center. From January to August 2026, compute expenses totaled about $56.1 million, or roughly 45% of operating expenses, while personnel costs were about $19.7 million, or 16%. Character.ai said it had cut spending by moving inference workloads to cheaper GPUs, using open-weight models for post-training instead of building foundation models in-house, reducing headcount, and consolidating offices. The company’s revenue did rise. Monthly revenue increased from about $2.8 million in December 2025 to about $5.3 million in August 2026, and annual revenue climbed from about $7.4 million in 2024 to about $23.6 million in 2025. But the filing also says Character.ai contacted about 28 potential buyers and investors in August 2025, and the feedback was largely the same: the product and user base were attractive, but litigation and regulatory exposure were too heavy.

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Policy Regula

2026-10-09 20:14:02

New York permanently bars Alex Mashinsky from crypto, securities and commodities industries in Celsius fraud settlement

New York Attorney General Letitia James has reached a settlement with former Celsius CEO Alex Mashinsky, permanently banning him from the cryptocurrency, securities and commodities industries and resolving a civil fraud case filed in 2023. The agreement includes up to $35 million in conditional payments: Mashinsky must pay New York $25 million if he fails to forfeit an additional $10 million in ill-gotten gains to the federal government beyond assets already surrendered, and another $10 million if he does not complete his full prison term. The case centered on allegations that Mashinsky misled hundreds of thousands of investors about Celsius’ safety before the platform collapsed in 2022. The lawsuit said Celsius marketed itself as safer than banks, promised yields as high as 17%, and concealed risky investments and mounting losses. New York’s announcement comes after separate actions by the CFTC, FTC and SEC, while Mashinsky also continues trying to overturn his federal conviction and 12-year sentence.

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Policy Regula

2026-10-09 13:56:49

New York reaches settlement with former Celsius CEO Alex Mashinsky, seeks up to $35 million

New York Attorney General Letitia James said the state has reached a settlement with former Celsius CEO Alex Mashinsky over allegations that he defrauded investors. The agreement provides for up to $35 million in conditional restitution and would permanently bar Mashinsky from the securities, commodities, and cryptocurrency industries. The announcement adds to earlier industry bans imposed by the U.S. Federal Trade Commission and the Commodity Futures Trading Commission. Mashinsky is currently serving a 12-year prison sentence. Separately, Celsius creditors have already received more than $3.4 billion in distributions through the company’s bankruptcy process. The settlement marks another regulatory action tied to the collapse of the crypto lender and comes as creditor repayments continue to move through court-supervised proceedings.

430

FTX

2026-10-05 04:00:00

FTX creditors in mainland China and Macau face payout deadlock before Jan. 31, 2027 deadline

FTX has already carried out five rounds of distributions under its bankruptcy reorganization plan, which took effect in January 2025, but creditors in mainland China and Macau still have not received any funds. According to the source article, these users can complete identity verification, submit tax forms, and even obtain claim approval, only to get stuck at step 8 of the process: choosing a distribution service provider. FTX currently works with BitGo, Kraken, and Payoneer, and the available options are shown based on the residence location recorded in a user’s account. For mainland China and Macau, none of the three appear. The article says FTX’s creditor help page warns that anyone who has not connected to a distribution service provider by Jan. 31, 2027 may lose the right to receive distributions. That creates a specific problem for creditors in the two jurisdictions, because they are required to connect on time while no service provider is available to them. The piece adds that FTX has not said when the situation might change, only that it plans to add new providers. It also points to claim sales as one immediate option and highlights Qredax, which says it buys eligible FTX claims from creditors in mainland China and Macau and can complete transactions in 24 to 48 hours.

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