Bankrupt crypto exchange FTX has proposed returning up to 90% of creditor holdings

Bankrupt crypto exchange FTX has proposed returning up to 90% of creditor holdings. The plan will be filed with a U.S. bankruptcy court by December 16. Customers with a preference settlement of less than $250,000 can accept it without a reduction. Preference settlement is 15% of customer withdrawals before the exchange went under. Creditors could also receive a "Shortfall Claim" based on the estimated missing assets, which amounts to nearly $9 billion for FTX.com and $166 million for FTX.US. However, recoveries may be affected by taxes, government claims, and token price fluctuations.

Binance, the world's largest cryptocurrency exchange, faced liquidity issues on Monday, with its buy-side liquidity plummeting from 100 BTC to 1.2 BTC ($30,000) due to market volatility caused by a false rumor about BlackRock's ETF approval. The cryptocurrency initially surged 7.5% to $30,000 in reaction to the rumor but later gave up those gains after BlackRock denied it.

California Governor Gavin Newsom signed a crypto licensing bill that will take effect in July 2025. Similar to New York's "BitLicense," the Digital Financial Assets Law empowers California's Department of Financial Protection and Innovation (DFPI) to establish a regulatory framework for crypto. The DFPI has 18 months to create rules that address industry trends and protect consumers.

In the crypto options market, trading volume surged as traders reacted to the rumor of a spot ETF approval. The call option at the $30,000 strike saw the highest trading volume as traders sought bullish exposure.

Volatility on Bitcoin increased and the price hit the 30000 targets before coming back 28500. The 100MA on the weekly chart will be the challenge for the beginning for a solid bullish momentum.