First Mover Americas: One of the Largest Bitcoin Miners Goes Bankrupt

The latest price moves in crypto markets in context for Dec. 21, 2022.

AccessTimeIconDec 21, 2022 at 1:18 p.m. UTC
Updated Dec 21, 2022 at 2:30 p.m. UTC

This article originally appeared in First Mover, CoinDesk’s daily newsletter putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.

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Core Scientific, one of the largest bitcoin miners by computing power, has filed for bankruptcy protection. The company filed for Chapter 11 at the Southern District of Texas bankruptcy court. The miner's estimated liabilities are from $1 billion to $10 billion, according to the filing. It has around 1,000-5,000 creditors, with the largest unsecured claim coming from investment bank B. Riley. The bankruptcy of Core Scientific, which accounts for about 10% of computing power on the bitcoin network, operating 143,000 mining runs and hosting another 100,000 is the biggest one yet and is set to send shockwaves in an already crumbling industry.

A creditor committee that includes crypto exchange Gemini has presented a plan to Genesis and Digital Currency Group (DCG) to “provide a path for the recovery of assets,” Gemini co-founder Cameron Winklevoss said in a tweet. The creditor committee expects to hear from Genesis and DCG by the end of the week. DCG is also the parent company of CoinDesk.

Sam Bankman-Fried, former CEO of bankrupt crypto exchange FTX, has signed the necessary paperwork to begin the extradition process, reports the New York Post, citing Doan Cleare, the acting commissioner of corrections at Fox Hill Prison in The Bahamas. Bankman-Fried is set to appear in court on Wednesday morning to continue the extradition process. CNBC reported that Bankman-Fried will fly to the U.S. the same day, also citing Doan Cleare.

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Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.