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  • Worldcoin Drops 6% Amid Alameda Research 1.5M WLD Sell-off

    Worldcoin Drops 6% Amid Alameda Research 1.5M WLD Sell-off


    Este artículo también está disponible en español.

    Worldcoin, the crypto project co-founded by OpenAI’s CEO Sam Altman, recently saw its token’s price drop over 6% following Alameda Research’s continued sales. Some analysts believe WLD’s price could continue to move sideways before recovering its bullish momentum.

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    Alameda Goes On A Worldcoin Sell-off

    On-chain data analysis firm SpotOnChain revealed that Alameda Research has sent part of its WLD holdings to crypto exchanges for the past two months. The report shared that, since early August, FTX’s sister company has transferred 1.56 million WLD tokens to Binance.

    The firm has sent around 143,770 WLD tokens, worth around $2.51 million, every week since August 9, selling the tokens in 10 batches at an average price of $1.6. The news came two days after US Bankruptcy Judge John Dorsey approved FTX’s repayment plan.

    The approval allows the crypto exchange to pay customers between $14.7 billion and $16.5 billion in recovered crypto assets. Alameda received around $8 billion of FTX users’ misappropriated funds, allegedly used for the fund’s trading operations.

    Some suggest that the sell-off is linked to FTX’s repayment plan, which is expected to start soon and could signify further selling pressure from the companies. Per SpotOnChain’s report, Alameda’s wallet holds 23.44 million WLD tokens worth around $43 million.

    At its current selling rate, it could take over three years to completely unload Alameda’s Worldcoin holdings. Additionally, other altcoins could face selling pressure from the company.

    The wallet holds $98.8 million in other cryptocurrencies, including 100.9 million Stargate Finance (STG), 1.78 million Mantle (MNT), and 98.86 million BitDAO (BIT), now MNT. The company’s BIT holdings, valued at $68 million, could start being sold in November, as the 3-year no-sale commitment with BitDAO ends.

    WLD Price Reacts To The News

    Following the sell-off report, Worldcoin saw a 6% dip in the daily timeframe. The token’s price dropped from the $1.98 mark to the $1.77 support zone in the last 24 hours, representing a 4.5% decline in WLD’s biweekly performance.

    The cryptocurrency registered a remarkable 31% weekly surge in late September after Worldcoin announced its expansion to three new countries. As reported by NewsBTC, the crypto project revealed it was bringing its World ID services to Guatemala, Poland, and Malaysia.

    The news, alongside the crypto market’s recovery, propelled the token’s price above the $2 mark, which was momentarily held. Since then, the token has struggled to reclaim the key support zone, hovering between $1.58-$2.03 levels for the past week.

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    Crypto analyst Yuiry from BikoTrading noted that WLD’s price retested the $1.5 crucial level after October 1’s drop, bouncing around 33% from this level. As the token continues trying to retest the $2 resistance level, the analyst expects it to move within its new $1.8-1.98 range for a few days before breaking above it.

    As of this writing, WLD is trading at $1.8, an 8.7% and 27.4% increase in the weekly and monthly timeframes.

    Worldcoin (WLD) performance in the weekly chart. Source: WLDUSDT on TradingView

    Featured Image from Unsplash.com, Chart from TradingView.com

    Rubmar Garcia

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  • Former Alameda Research CEO Caroline Ellison’s Sentencing Revealed

    Former Alameda Research CEO Caroline Ellison’s Sentencing Revealed

    Caroline Ellison was sentenced to two years in federal prison on Tuesday for her involvement in the FTX fraud scandal.

    The 30-year-old was also ordered to forfeit $11 billion, which she earned through her association with the now-collapsed cryptocurrency exchange.

    Ellison’s Cooperation

    Judge Lewis A. Kaplan, who presided over the case, acknowledged the former Alameda Research CEO’s cooperation with the prosecution, “I’ve never seen a cooperator quite like Miss Ellison,” he remarked. Despite this, Kaplan emphasized that the scale of the FTX fraud meant she could not avoid prison time. “Cooperation isn’t a ‘get out of jail free’ card in a case of this magnitude,” he added.

    Her sentence includes three years of supervised release upon completing her prison term, which she could serve at a minimum-security facility near Boston. Due to the federal nature of her crime, she has to serve at least 75% of her sentence before being eligible for parole.

    Prosecutors described Ellison’s testimony as crucial to Bankman-Fried’s conviction, calling it the “cornerstone” of the case in a memo before Tuesday’s hearing. Assistant U.S. Attorney Danielle Sassoon also highlighted this, contrasting her remorse with his lack of accountability.

    Her attorneys also argued that her “extraordinary cooperation” and low risk of reoffending should result in a more lenient sentence. Her legal team and probation department had previously recommended time served plus three years probation.

    Her lawyer, Anjan Sahni, said Ellison had been manipulated by SBF, with whom she had a past romantic relationship, and that she had since “recovered her moral compass.” Judge Kaplan added, “You were vulnerable, and you were exploited.”

    SBF’s Appeal for New Trial

    Meanwhile, the FTX  founder is seeking a new trial with a different judge, claiming bias in his previous case. His legal team has filed an appeal, arguing that Judge Kaplan, who presided over the original trial, showed a prejudicial attitude that they believe impacted the verdict.

    Additionally, a group of doctors submitted a brief supporting his appeal, citing his neurodivergent conditions, including autism spectrum disorder (ASD) and ADHD. They argued that his conditions, combined with a lack of access to necessary medication during the trial, affected his ability to communicate effectively and contributed to his conviction.

    Before being sentenced, Ellison was remorseful, apologizing to FTX’s former customers, her family, and colleagues.”The human brain is bad at comprehending big numbers,” she said. “I can’t even begin to imagine the pain I’ve caused.”

    She concluded, “If you had told me back in 2018 that I would end up pleading guilty to fraud, I would have told you you were crazy… At each stage of the process, it became harder and harder to extricate myself…I’m sorry I wasn’t brave.”

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  • Who Lost Money in FTX? Tom Brady, Kevin O’Leary and More | Entrepreneur

    Who Lost Money in FTX? Tom Brady, Kevin O’Leary and More | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Additional reporting by Sherin Shibu.

    The collapse of Sam Bankman-Fried’s FTX crypto empire was not only felt by those deep in the crypto community — some big-name entrepreneurs and celebrities lost a lot of money, too.

    Although SBF allegedly led investors to believe he could bring them high returns with little risk, more than a million people may have been affected by the collapse, and big-spending-crypto-newbies quickly found out that trading crypto isn’t for the faint of heart.

    RELATED: Sam Bankman-Fried Sentenced to 25 Years in Prison for Multibillion-Dollar Crypto Fraud

    In November, Bankman Fried was found guilty on seven counts of fraud, embezzlement, and criminal conspiracy for orchestrating “one of the biggest financial frauds in American history” after a bank run exposed an $8 billion hole in company accounts and a piggy bank relationship with Alameda Research crypto trading firm.

    Bankman-Fried was sentenced on Thursday in a Manhattan federal court to 25 years in prison.

    Southern District of New York Judge Lewis Kaplan said that Bankman-Fried was “extremely smart” and agreed with prosecutors that Bankman-Fried “wanted to be a hugely, hugely politically influential person in this country.”

    Kaplan stated that the loss amount to the victims of Bankman-Fried’s crimes surpassed $550 million and that investors lost billions.

    Meanwhile, FTX’s new CEO John Ray, who stepped in for SBF after the company filed for bankruptcy, said the company has located $5 billion in cash and other assets, and while they are not done discovering unearthed funds, they plan to also sell over $4.6 billion in additional holdings as well.

    It’s unclear how the recovered funds will be divvied up, but typically in bankruptcy proceedings, only bond-holders are eligible to recoup a portion of their losses, while those with equity stakes are left at a loss, according to Markets Insider.

    Sequoia Capital likely suffered the greatest loss for an outside investor in the exchange with its $200 million investment, which peaked at $350 million in January 2022, according to data obtained by Forbes.

    RELATED: Who Is FTX Founder Sam Bankman-Fried?

    While Sequoia reportedly told investors its FTX investment was offset by its $7.5 billion in realized and unrealized gains, Singapore investment company Temasek didn’t get as lucky.

    The company reportedly invested $210 million for 1% of FTX and $65 million for 1.5% of FTX U.S. but has since determined its stakes to zero.

    Additionally, investment company Paradigm is said to have invested $215 million, while the Ontario Teachers’ Pension Plan invested $75 million, and has since written its investment to zero.

    Here’s a look at some of the famous faces who lost big in the FTX crypto collapse.

    Tom Brady

    Tom Brady is the most famous face to promote and invest in FTX — and he also may have suffered the greatest individual loss. The Tampa Bay Buccaneers quarterback owned over 1.1 million common shares of FTX Trading, which equaled about $45 million before the company went bankrupt, according to Bloomberg.

    While his investment is now zero in the wake of the collapse, he previously advocated for the exchange and appeared in several promotional ads with his now ex-wife Gisele Bündchen.

    Gisele Bündchen

    Along with her now ex-husband, Tom Brady, the supermodel also lost a significant portion of her wealth in the exchange. Bündchen reportedly owned 680,000 FTX shares, which were valued at about $25 million.

    Kevin O’Leary

    The Shark Tank entrepreneur was a fierce advocate for SBF’s FTX before the crypto exchange’s fall. As a paid spokesperson for the company, O’Leary owned 32,000 shares in FTX and 110,000 shares of FTX US. He said his shares were valued at $1 million during a U.S. Senate Banking Committee in December, adding that he has since “written them off to zero.”

    O’Leary told CNBC’s “Squawk Box” in December that he was paid around $15 million to act as a paid spokesperson for the brand and put just under $10 million into the crypto exchange. But he said his crypto investment is now equal to zero.

    Robert Kraft

    New England Patriots owner Robert Kraft also fell victim to FTX. He reportedly owned about 630,000 total FTX-related shares through KPC Venture Capital LLC, an entity connected to the Kraft Group.

    Using O’Leary’s valuation, the NFL team owner may have lost an eight-figure investment.

    Robert Belfer

    Billionaire oil baron Robert Belfer, who was once known as the heir to bankrupt gas company Enron, also reportedly lost millions with FTX’s collapse. Two firms linked to the Belfer family held shares in both FTX and FTX US with a combined stake of $34.5 million, according to court documents obtained by the Financial Times. Belfer was also notably entangled in Bernie Madoff’s infamous Ponzi Scheme.

    Anthony Scaramucci

    Donald Trump’s former communications director was also wrapped up in the FTX collapse with his alternative investment company, SkyBridge Capital. Last September, FTX acquired 30% of SkyBridge Capital, per The Street, and while the details of the deal are unknown, Scaramucci said he was also at a loss despite the purchase.

    “We lost money in general because the overall portfolio is going down as a result of this debacle, so yes I guess yes,” he said when asked about the collapse in November at the Bloomberg New Economy Forum in Singapore.

    RELATED: ‘I Didn’t Steal Funds, and I Certainly Didn’t Stash Billions Away’: Sam Bankman-Fried Speaks for the First Time Since His Arrest

    Stephen Curry

    Stephen Curry was one of the many celebrities to endorse FTX with his various commercials and his 2021 partnership with the brand. Like Brady and Bündchen, Curry also got a stake in FTX for his work with the company.

    Curry’s team, the Golden State Warriors, was also entangled in the scandal after FTX agreed to pay $10 million for an international rights sponsorship deal that gave the exchange in-area signage, exclusive brand placements, and the rights to the team’s NFTs in December 2021.

    Curry is also named in a class action lawsuit that claims the celebrities who endorsed FTX participated in deceptive strategies to “induce confidence and to drive consumers to invest in what was ultimately a Ponzi scheme,” according to the lawsuit.

    Sam Bankman-Fried, Tom Brady, Gisele Bundchen, Kevin O’Leary, Shaquille O’Neal, Udonis Haslem, David Ortiz, William Trevor Lawrence, Shohei Ohtani, Naomi Osaka, and Larry David were also mentioned in the suit.

    Naomi Osaka

    Tennis star Naomi Osaka also signed a long-term partnership agreement with FTX in March that was supposed to help bring women into the crypto world, according to Reuters. She was given an equity stake in the company and received compensation in the form of crypto.

    David Ortiz

    Red Sox baseball legend David Ortiz also signed on to be an FTX ambassador in October 2021 and agreed to be compensated in cryptocurrency, per CoinDesk. At the time, he agreed to release multiple NFT collections, while FTX agreed to sponsor the David Ortiz Celebrity Golf Classic and donate to the David Ortiz’s Children’s Fund. It’s unclear if the fund will be required to repay the donations if they are found to have been made with customer money.

    Check out our Dirty Money Podcast for our take on Crypto Crook Sam Bankman-Fried.

    Sam Silverman

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  • Pantera Capital Eyes $250 Million Opportunity with FTX Estate for SOL: Report

    Pantera Capital Eyes $250 Million Opportunity with FTX Estate for SOL: Report

    Pantera Capital is reportedly in the process of securing funds from major investors to acquire heavily discounted Solana tokens from the bankruptcy estate of FTX. The company is raising capital for the Pantera Solana Fund, which presents an attractive opportunity to purchase up to $250 million worth of SOL tokens from the FTX estate.

    Marketing materials from February, obtained by Bloomberg, reveal that investors would have the option to buy SOL at a price 39% below the 30-day average or at $59.95. However, in exchange for this option, investors would need to commit to a vesting period of up to four years.

    Pantera Solana Fund

    According to the investor pitch, Pantera initially aimed to finalize the fund’s closure by the end of February. A source familiar with the matter mentioned that the $5.2 billion crypto-focused asset manager managed to raise some funds by the deadline. However, the individual refrained from disclosing the exact dollar amount.

    FTX, which entered Chapter 11 bankruptcy proceedings in US courts in November 2022, possesses 41.1 million SOL coins, valued at $5.4 billion as of Wednesday’s closing price. This accounts for about 10% of the total SOL supply, according to Pantera’s presentation.

    The latest proposal from the digital assets-focused hedge fund would enable FTX liquidators, led by John J. Ray III, to sell SOL to generate funds for creditors while avoiding immediate pressure on the token’s price.

    Investors must contribute a minimum of $25 million each, with the understanding that the SOL tokens they receive will be initially restricted and will unlock over a four-year period.

    Additionally, Pantera intends to implement a management fee of 0.75% and a performance fee of 10%, as outlined in the materials.

    Solana and FTX’s Relationship

    Sam Bankman-Fried showed significant support for Solana, actively endorsing projects within its ecosystem. His enterprises accumulated substantial amounts of the blockchain’s native token, SOL, from both the Solana Foundation, a nonprofit organization backing the blockchain, and Solana Labs, the blockchain’s developer.

    Bankman-Fried even initiated Serum, a decentralized exchange established on Solana’s blockchain, and also provided investment in various projects operating on Solana’s network.

    As a result, SOL turned out to be one of the biggest losers after FTX plunged into bankruptcy.

    The Solana Foundation had approximately $1 million in cash or cash equivalents held on FTX.com when the trading platform halted customer withdrawals in early November. This amount represented less than 1% of the foundation’s total cash or cash equivalents, and there were no SOL tokens held in custody on the exchange.

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  • FTX, Alameda reach settlement with crypto lender BlockFi, will pay up to $874m

    FTX, Alameda reach settlement with crypto lender BlockFi, will pay up to $874m

    FTX and Alameda have settled their disputes with BlockFi, agreeing to pay the firm up to $874 million, subject to court approval.

    Bankrupt crypto companies FTX and BlockFi have reportedly settled their disputes arising from their collapses in 2022 after the crypto exchange left many companies in a death spiral that has billions of dollars left in limbo. According to the agreement details, FTX will pay BlockFi up to $874.5 million, pending approval by U.S. Bankruptcy Judge John Dorsey in Wilmington, Delaware, Reuters reports.

    The litigation between the two entities started in 2023, with both seeking to recoup funds lent before their joint bankruptcies in November 2022. Under the newly reached settlement, FTX will a $250 million payment to BlockFi, while the remaining sum is contingent on FTX’s efforts to reimburse its customers amidst bankruptcy proceedings.

    Additionally, FTX has also committed to pay an extra $185.3 million to BlockFi, representing the amount held by BlockFi in its FTX trading accounts when the exchange collapsed. The distribution percentage for BlockFi’s customers holding interest-bearing accounts varies considerably, with potential recoveries ranging between 39.4% and 100% of their account balances.

    As part of the settlement, BlockFi has agreed to drop its lawsuit concerning 56 million Robinhood shares, allegedly pledged as collateral for loans to Alameda Research, FTX’s main market maker. These equity shares were seized by the U.S. Department of Justice following the arrest of FTX founder Sam Bankman-Fried, who’s now facing over 100 years in prison after being convicted on multiple charges related to the collapse of his exchange.


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    Denis Omelchenko

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  • FTX and Alameda Divest $36 Million Worth of These Assets

    FTX and Alameda Divest $36 Million Worth of These Assets

    FTX and Alameda have been actively divesting their holdings. Within the past 24 hours, both entities have transferred $36.01 million worth of MATIC and AVAX to various exchanges.

    This is a testament to their ongoing commitment to reaching settlements with creditors amidst the twists and turns of the bankruptcy battle.

    FTX Selling Spree Continue

    Based on Spot on Chain analytics, FTX deposited $36.01 million worth of MATIC and AVAX to different exchanges within 24 hours. Out of this total, Coinbase and FalconX received 22.6 million MATIC valued at $17.2 million, while FalconX alone obtained 975,859 AVAX with a value of $18.83 million.

    On Nov. 21, accounts associated with the defunct exchange FTX transferred approximately $3.16 million worth of Ethereum to the troubled former rival Binance. The transaction was facilitated through Wintermute Trading.

    Notably, they conducted test deposits on Nov. 21 to the digital asset trading platform FalconX as a preliminary step towards subsequent asset transfers.

    Additionally, on Nov. 17, FTX and Alameda-related addresses unstaked 11.5 million MATIC, valued at $9.24 million.

    FTX has effectively transferred $488 million across 48 distinct tokens since Oct. 24, indicating a marginal increase from Monday’s closing sum of $452 million.

    Based on the data, SOL has been the most transferred asset in the period, with about 6.9 million tokens worth $280.2 million moving between wallets. Others include ETH, MATIC, RNDR, LINK, DYDX, GRT, LDO, MKR, MANA, BAND, CHZ, SUCHI, ENS, MASK and more in that order.

    The recent continuous asset sale is part of FTX’s plan to settle its debts. A report indicates that some FTX creditors have recently been offered as much as $0.6 to $0.65 on the dollar, a 30% increase from what they were presented in October.

    FTX Case Taking Complex Twists

    FTX court dispute continues with more recent developments. A few days ago, the attorney for Brandon Williams, one of the defendants in the FTX saga, asked a Delaware court to delay the ongoing bankruptcy proceedings for more investigations on why the exchange ran insolvent. The defendant seeks to look at the events between November 2021 and October 2022 that led to the demise of FTX.

    However, Judge John Dorsey outrightly denied the motion, noting, “If the discovery is as complex as it is said to be, it needs to be started now, not delayed.”

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  • SBF trial day 17: Jury begins deliberation over Bankman-Fried verdict

    SBF trial day 17: Jury begins deliberation over Bankman-Fried verdict

    On Nov. 2, Jury deliberation began in United States v Bankman-Fried over fraud allegations, conspiracy, and money laundering charges linked to FTX and Alameda’s collapse.

    The criminal trial for Sam Bankman-Fried over the multi-billion dollar collapse of FTX reached its climax on Nov. 2 following closing statements from prosecutors and the defense. 

    Bankman-Fried’s defenders offered arguments presenting the FTX founder as merely human and therefore challenging the government’s case which alleges purposeful fraud and criminal intent. 

    Conversely, federal attorneys said the defendant arrived at several crossroads where he could have come clean and told the public the truth, but chose to risk it all following the two companies filing for bankruptcy. 

    Defense attorneys claimed witnesses Caroline Ellison, Gary Wang and Nishad Singh only testified to save themselves from severe prosecution. Former executives were never whistleblowers while FTX and Alameda operated because there was no law-breaking, according to Mark Cohen and the defense. 

    Prosecutors countered by painting FTX’s founder as a dictator who chose impressionable deputies and influenced all significant decisions. Federal lawyers asked the jury to consider Bankman-Fried’s demeanor on the stand against witnesses like Ellison, Wang and Singh, who allegedly yielded consistent answers throughout their testimonies. 

    Bankman-Fried’s legal team said the former FTX boss never checked the code bug or accessed the exchange’s AWS database. Government attorneys responded with Bankman-Fried’s MIT degree and his testimonies in front of Congress, stressing that the defendant was brilliant and calculated enough to convince investors and U.S. lawmakers alike. 

    The prosecution added that absent executives in critical departments like risk management and miscommunication with in-house legal consultants were strategies employed by Bankman-Fried showcasing conscious avoidance and conspiracy to commit fraud.

    Following rebuttals from both sides, Senior District Judge Lewis A. Kaplan charged the jury to deliberate and come up with an eventual verdict. 

    Two of the seven counts involve wire fraud on FTX customers and Alameda’s lenders, respectively. The charges also establish the venue for Bankman-Fried’s trial in the Southern District of New York.

    Conspiracy charges make up the remaining five counts. For conspiracy charges in counts two and four, the Judge said arguments are sufficient if evidence proves that at least two persons agreed to break the law. FTX’s former boss is also charged with conspiracy to commit securities fraud. 

    Count one charged the defendant with conspiracy to launder wire fraud proceeds while count seven includes concealment of money laundering and the act itself. The jury would be required to choose either or both on the verdict form if Bankman-Fried is considered guilty.

    Jurors were instructed to disregard why witnesses like Caroline Ellison signed cooperation agreements. Judge Kaplan also reaffirmed that Bankman-Fried is not charged with campaign finance violations or bribery of Chinese officials. The jury can, however, consider these matters in the context of alleged conspiracy.

    Ellison testified that Alameda co-CEO Sam Trabucco and the defendants devised a plan to unfreeze $1 billion stuck in Chinese accounts by paying a $100 million bribe to Beijing officials. The blueprint for this transaction involved sending cryptocurrencies to wallets belonging to Thai escorts.

    Alternate jurors were reminded not to read anything about the case and Judge Kaplan excused the jury to begin its deliberation. A verdict could be issued in a matter of hours or days. Here are the 12 jurors for Bankman-Fried’s trial.


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    Naga Avan-Nomayo

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  • A new generation of companies is moving up in San Francisco — into nicer, more central office space | TechCrunch

    A new generation of companies is moving up in San Francisco — into nicer, more central office space | TechCrunch

    Ten years ago, Pear VC, then a tiny new venture firm, operated out of a nondescript office in Palo Alto that was enlivened by bright, computer-themed art. Last week, the outfit – which closed its largest fund to date in May – quietly inked a deal to sublease 30,000 square feet of “Class A” office space in San Francisco’s Mission Bay neighborhood from the file-storage giant Dropbox.

    It’s among a number of fast-growing outfits taking up more space in San Francisco as an earlier generation of companies shrinks its physical footprint.

    As the San Francisco Chronicle first reported last week, ChatGPT creator OpenAI also just subleased two buildings totaling a collective 486,600 of square feet from Uber. The ride-share giant, which originally leased a grouping of four buildings down the street from Dropbox and will continue to occupy two of these, told the paper it is “right-sizing.”

    Meanwhile, a rival to OpenAI – Anthropic – also just reportedly closed a sizable subleasing deal. Its plan: to take over the entire 250,000-square-foot building in downtown San Francisco that was previously Slack’s headquarters.

    Salesforce, which acquired Slack in 2021, is an investor in Anthropic. Meanwhile, Pear VC co-founder Pejman Nozad wrote one of the first small checks to Dropbox when he was still relatively new to the U.S. from Iran and selling Persian rugs to Silicon Valley bigwigs. Such subleases don’t necessarily begin with hand-shake deals, however. Asked if Nozad zeroed in on Pear’s new space owing to his connection to Dropbox, he scoffs. The office — which has room for more than 200 desks, features more than 20 conference and call rooms, and has dedicated events space to host talks — “was a business deal for them,” says Nozad. “The founders were not involved. As you know, I sold rugs for 17 years, so I have some skills in negotiation,” he adds with a laugh.

    Certainly, it’s a good time to strike a subleasing deal if you’re a well-funded company on the rise. According to Colin Yasukochi, an executive director at the commercial real estate services firm CBRE, subleases in prime areas like Mission Bay and the city’s Financial District currently range from $60 to $80 per square foot. The higher the floor and the more plentiful the amenities, the higher the price. For startups willing to sublease space with less than five years left on the lessee’s contract, the better the terms (as they’ll need to lease again somewhere else in the not-too-distant future). In comparison, office lease rates passed the $75 per square foot mark in September 2019 before the pandemic turned the city upside down.

    There’s also no shortage of options right now. San Francisco’s commercial buildings are currently 35% vacant, and there are still more tenants flowing out the door than entering them.

    But a tipping point is seemingly in sight. There was “negative net absorption” of 1.85 million square feet in San Francisco in the third quarter of this year, according to CBRE data; at the same time, market demand reached 5.2 million square feet, which is the highest increase since the first quarter of 2020. Much of that shift can be traced to companies like OpenAI, suggests Yasukochi, who says that a new spate of outfits is starting to set up shop, enticed by the opportunity to rent sleeker space for the same or better prices than was possible several years ago, and in more central areas of the city. “It’s a huge opportunity for companies that are trying to bring back their employees,” says Yasukochi. (OpenAI CEO Sam Altman has long said he thinks companies are more effective when employees convene in person.)

    Indeed, Yasukochi anticipates that if the economy improves in the second half of new year and interest rates come down, tech outfits in particular will be positioned to recover faster —  and pull the city along with them. “Many tech companies were quick to cut excess employees, along with real estate and other costs,” says Yasukochi. He also says that while tech outfits are typically “early to cut back, they’re also early to grow. I don’t see any other industry that generate the volume of growth that tech can.”

    Worth noting: Yasukochi does not think those tech companies will necessarily be growing in San Francisco’s Hayes Valley. Though the neighborhood has led a resurgence of interest in San Francisco and eagerly embraced the moniker “Cerebral Valley,” owing to its concentration of AI communities, most of those teams, he observes, are “meeting in restaurants and bars and working out of their apartments. There isn’t a lot of office space there.”

    Pictured above: 1800 Owens Street in San Francisco, which is the site of Dropbox’s headquarters and now, Pear VC’s San Francisco office, too.

    Connie Loizos

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  • SBF trial day 17: FTX founder pitched as a criminal and a victim in closing arguments

    SBF trial day 17: FTX founder pitched as a criminal and a victim in closing arguments

    Attorneys for the government and defense delivered their closing arguments in United States v Sam Bankman-Fried, the trial over FTX’s multi-billion dollar collapse where prosecutors allege that the founder built his crypto empire atop a “pyramid of lies”.

    The jury will receive the case for deliberation on Nov. 2, said Senior District Judge Lewis A. Kaplan who presides over the case. Trial bystanders postulated that a verdict could be announced sooner rather than later.

    Assistant United States Attorney (AUSA) Nicholas Roos summarized the government’s case into direct points – the defendant Bankman-Fried deceived and defrauded thousands of FTX customers who deposited billions in the defunct crypto exchange, said InnerCityPress.

    Bankman-Fried allegedly set up FTX as a feeder entity for Alameda long before Ellison joined as head of trading and was later appointed sole CEO after Sam Trabucco resigned. 

    The prosecutor pointed to Bankman-Fried’s evasive responses on the stand and his full knowledge of decisions at Alameda Research, the crypto trading firm he owned 90% of. Multiple accounts described the FTX founder saying “I don’t recall” some 140 times in court.

    AUSA Roos said the MIT graduate favored the odds of stealing customers’ money and getting away with it, as corroborated by three-star witnesses in Caroline Ellison, Gary Wang and Nishad Singh. 

    Bankman-Fried courted world leaders and policymakers to bolster his public image as a legitimate business while purposefully orchestrating illegal operations behind closed doors, luring customers with fraudulent marketing schemes and celebrity endorsements according to the prosecution.

    Federal prosecutors argued that Bankman-Fried’s advice-of-counsel and claims of ignorance failed to meet the burden of proof, adding that only the FTX founder had the access needed to greenlight decisions which ultimately plunged his twin crypto companies into bankruptcy. 

    Bankman-Fried doubled down on spending and looting customer crypto when his team informed him of the escalating risks, Roos continued, imploring the jury to focus on the evidence rather than storytelling tactics. 

    As AUSA Roos reminded the court, FTX’s founder is charged on seven counts that are built on four crimes namely defrauding FTX customers, fraud on FTX investors, fraud on Alameda’s lenders and money laundering.

    Defense: Other executives to blame for FTX crash

    Defense attorney Mark Cohen positioned Bankman-Fried’s closing argument as a tale of two cases – one where the government vilified FTX’s former CEO, and another where the defendant was a victim of his fast-growing crypto empire.

    Cohen maintained that Bankman-Fried’s actions were not fraudulent and his decision to repay lenders rather than disappear with millions showed good faith. The defense lawyer insisted that Ellison and other former executives raised no alarm until FTX completely collapsed, pointing out that government witnesses only testified to secure plea deals and escape jail time.

    “Sam did his best. Some decisions turned out very well. Some decisions turned out poorly. But it’s not a crime,” said Cohen, who finished by noting that former company captains like Ellison failed to execute their duties and moved to scapegoat Bankman-Fried.

    Rebuttal summations are scheduled for trial day 16 followed by a verdict. While a decision is expected shortly, there’s no ironclad timeframe for jury deliberation. 


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    Naga Avan-Nomayo

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  • SBF trial day 15: “I was trying to help” FTX founder claims on third day of testimony

    SBF trial day 15: “I was trying to help” FTX founder claims on third day of testimony

    FTX’s founder stuck to his guns on who to blame for Alameda’s spending and use of customer funds during the third day of his testimony in United States v Sam Bankman-Fried.

    Day 15 and Sam Bankman-Fried’s third day on the stand displayed numerous questions from assistant United States attorneys. Simultaneously, the FTX founder’s lawyers’ direct examination elicited answers that all but blamed Caroline Ellison for Alameda Research’s unchecked use of FTX customer crypto and assets.

    Bankman-Fried said Ellison, ex-CEO of Alameda, admitted to subpar hedging at the crypto trading firm and tendered her resignation. Eventually, the pair moved forward with running FTX and its sister firm Alameda with the intention of repairing the businesses. 

    In September, I asked her again about hedging. I asked what the scale was. She gave me some numbers. I told her I was glad but that it should be a bigger number, at least twice as much. She also sent me some spreadsheets.

    Sam Bankman-Fried, FTX founder

    Previously Ellison testified to preparing some seven to eight misleading spreadsheets for Bankman-Fried as executives haggled with crypto lenders and tried to hide gaping holes in Alameda and FTX’s balance sheet.

    Between Nov. 2 when Alameda’s financial records leaked and Nov. 7, after Ellison offered to buy Binance’s $2 billion FTT trove at $22, net withdrawals increased from $1 billion to $4 billion according to the defendant as noted by InnerCityPress.

    Bankman-Fried said FTX was solvent to his knowledge and hadn’t taken customer crypto, explaining his reasoning for the “assets are fine” tweets on what at that time was Twitter. After observing Ellison’s hedges at Alameda fall and Binance’s takeover of FTX collapse, Bankman-Fried said he deleted his posts. 

    The FTX founder recounted speaking with private equity firm Apollo regarding a multi-billion dollar rescue package but the firm balked at investing following due diligence on Bankman-Fried’s crypto exchange. 

    “I was trying to help in any way I could,” said Bankman-Fried in response to the final questions from his defense attorneys during the direct.

    Prosecutors probe Bankman-Fried’s credibility

    The opening questions from prosecutors during cross-examination quickly established that Bankman-Fried was heavily involved in trading decisions at Alameda as he owned 90 percent of the trading firm while Caroline Ellison and Sam Trabucco were listed as co-CEOs.

    Bankman-Fried was asked about a Twitter Spaces with Mario Nawfal in December 2022, a few weeks after FTX imploded. The audio recording of the interaction played in a New York federal court featured Bankman-Fried explaining his strategies to appear uninvolved in Alameda’s operations due to conflicts of interest. 

    “Sounds like me,” replied the defendant. Prosecutors also referenced an interview with the Financial Times prior to Bankman-Fried’s arrest where he claimed to be “walled off” from Alameda. Federal attorneys pointed out differences in statements made after FTX filed for bankruptcy and his testimony under oath.

    Prosecutors called up evidence of Bankman-Fried promoting FTX as a safe exchange where users truly owned their assets, a fundamental philosophy underpinning blockchain and cryptocurrencies. 

    The defendant countered, claiming lapses in his memory as tweets and interviews challenging his testimony were entered into court records.

    Bankman-Fried admitted that Alameda held special privileges enshrined in the code powering FTX’s trading engine despite marketing the exchange as a “neutral piece of infrastructure”. Prosecutors contested Bankman-Fried’s credibility, arguing that the defendant had knowledge of Alameda’s operations while presenting the firm as a separate entity on par with any user at FTX.

    FTX’s former CEO directed a basket of investments into real estate, Genesis’ crypto mining arm, Michael Kives’ K5 Global, Modulo Capital and Robinhood to name a few. Bankman-Fried refrained from confirming or denying an apartment purchased for Mike McCaffrey, ex-CEO of crypto news site The Block.

    Regarding repayment of Alameda’s loans to lenders like BlockFi and Genesis, Bankman-Fried said he was aware tapping customers’ assets on FTX might weaken the exchange but thought the odds of that happening were not significant. 

    Bankman-Fried’s testimony will likely conclude on Oct. 31 followed by two rebuttal witnesses for the government and a direct from his defense attorneys led by Mark Cohen, a former federal prosecutor. 


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  • FTX And Alameda Addresses Move $80 Million In Crypto Over The Past Week – Details

    FTX And Alameda Addresses Move $80 Million In Crypto Over The Past Week – Details

    According to the latest on-chain data, wallet addresses linked to the now-bankrupt FTX exchange and Alameda Research have transferred substantial amounts in crypto assets over the past week. This series of funds movement was first brought to the limelight by prominent blockchain analytics firm Nansen, who reported that more than $60 million had been moved.

    However, further on-chain revelation shows that nearly $80 million has been moved from FTX- and Alameda-linked addresses in the previous week.

    Nansen Uncovers FTX And Alameda’s $60 Million Transfer

    On Friday, October 27, Nansen disclosed – via a series of posts on X (formerly Twitter) – that FTX has been transferring millions in digital assets, including Chainlink (LINK), Solana (SOL), Ethereum (ETH), Polygon (MATIC), etc, to various exchange addresses. 

    Prior to this development, the analytics firm initially reported that around $8.6 million were moved to a Binance address. According to the latest Nansen data, FTX subsequently moved $24.3 million in various tokens to different addresses on Coinbase and Binance. 

    The now-defunct exchange would later transfer 943,000 SOL (worth around $32 million) from its cold storage wallet on Friday. Based on Nansen’s data as of October 27, the total funds moved from FTX and Alameda wallets was above $60 million.

    Has There Been More Transfers?

    On Saturday, October 28, another blockchain data tracker, Lookonchain, offered an update on the recent transfer activities of the FTX- and Alameda-associated addresses. In a post on the X platform, the analytics platform revealed that FTX and Alameda moved an additional $20 million in crypto assets on Saturday.

    FTX assets transfer in the past week | Source: Lookonchain/x

    According to Lookonchain, FTX addresses transferred 309,185 SOL (worth around $10 million), 2 million Band Protocol tokens (equivalent to $3.15 million), 3.82 Perpetual Protocol tokens (worth about $2.3 million), amongst other crypto assets. Using Lookonchain’s data, this brings the total value FTX has moved this week to $78.7 million.

    While the purpose of these transfers is unknown, it remains to be seen whether they are associated with the exchange’s bankruptcy proceedings. And it comes after the FTX estate recently staked $122 million worth of Solana tokens.

    FTX exchange has been looking to conclude its pending Chapter 11 court case, with a recent proposal offering customers more than 90% of their missing assets toward the end of Q2 2024. Meanwhile, former CEO Sam-Bankman Fried is currently on trial for seven counts of fraud-related offenses.

    FTX

    Solana price at $32.30 on the daily timeframe | Source: SOLUSDT chart on TradingView

    Featured image from iStock, chart from TradingView

    Opeyemi Sule

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  • BTC above $35K, SBF testifies, Gemini, Elon Musk | Recap 

    BTC above $35K, SBF testifies, Gemini, Elon Musk | Recap 

    This week saw Bitcoin (BTC) hit a new yearly high; Sam Bankman-Fried testifies; Gemini sues Genesis Global, Elon Musk has crypto plans and regulatory efforts resurface.

    Bankman-Fried testifies

    FTX founder Sam Bankman-Fried took the stand on day 13 of his trial to deliver testimony, leveraging a remarkable “I don’t recall” approach in his speech to the judges.

    Bankman-Fried claimed that FTX refrained from utilizing auto-deletion mechanisms for their decision-making channels and leaned heavily on Signal for security measures. Furthermore, he deflected accountability onto his legal counsel, underscoring his lack of knowledge regarding specific aspects.

    The 14th day of the trial also saw Bankman-Fried on the stand. He attributed Alameda’s management turmoil to his former partner, Caroline Ellison, and candidly admitted to utilizing customer funds for political contributions. 

    Key highlights from his testimony involved vehemently refuting any allegations of fraud, asserting that he sourced funds from various channels for Alameda, and expressing dissent toward his colleagues’ moniker for the company. 

    He claimed their extensive global travels as a pursuit of a more ‘adaptable’ regulatory landscape and emphasized how FTX’s assertive promotional endeavors were underpinned by loans from Alameda.

    Despite his proposing a $2 billion safety buffer, Alameda didn’t adhere to a hedge against its bets. Subsequently, in the autumn of 2022, he contemplated the closure of Alameda and told Adam Yedidia that FTX doesn’t possess an impervious shield against a collapse.

    Turkey and Taiwan step up

    Turkey reemerged in the crypto arena with a strategic agenda. They resolved to address cryptocurrency taxation and related regulatory measures as integral components of their 2024 Presidential Annual Program. In a departure from prior deliberations, tangible progress is now evident in the implementation of these regulations.

    Taiwan decided to take a serious stance on cryptocurrencies, exemplified by the introduction of the Virtual Asset Management Bill in their legislative body, the Legislative Yuan. 

    The bill is all about bringing some order to the local crypto industry, with a 30-page document that defines virtual assets, sets rules for asset operators, tightens consumer protection, and insists on industry cooperation and regulatory approvals as a prerequisite for operation.

    Regulatory uncertainty

    Meanwhile, the regulatory atmosphere in the US remained uncertain, with complaints from industry leaders piling up each day. This week, SEC commissioner Hester Peirce lent her voice against the agency’s crackdown on the crypto industry.

    Peirce expressed her dissatisfaction with the SEC’s approach to cryptocurrency enforcement, with a particular focus on their recent dispute with LBRY. She highlighted that LBRY had a functional blockchain with practical utility, and she attributed the SEC’s actions as a contributing factor to its demise. 

    Peirce raised questions regarding the overall benefit to investors and the market resulting from these actions. She characterized the SEC’s strategy in the crypto scene as “misguided” and posits that a more constructive path would involve developing clear regulatory frameworks instead of engaging in blame-oriented discourses.

    Kraken has reluctantly decided to start the sharing of user information with the IRS, effective from next month. This decision stemmed from a court mandate received in June, leaving the exchange with limited alternatives. 

    The IRS and Kraken had been embroiled in a protracted legal dispute since May 2021, with the tax authority’s primary aim being the identification of tax evaders. Despite Kraken’s persistent resistance, the Federal Court ultimately adjudicated in favor of sharing user data to facilitate tax compliance verification.

    Binance woes

    As Binance’s regulatory woes mounted, the company witnessed another departure this week. Binance’s Chief of Compliance for the UK, Jonathan Farnell, made a notable departure from the company. He had relinquished his senior position at Binance Europe in June and finalized his departure from Binance Markets Limited at the close of September. 

    Meanwhile, U.S. legislators Cynthia Lummis and French Hill believe a comprehensive examination of Binance is long overdue. They have written a letter to the Department of Justice, recommending a thorough investigation of Binance and Tether. 

    Apparently, apprehensions have surfaced regarding the potential use of cryptocurrencies for less-savory purposes. Senator Lummis is urging a closer scrutiny of this matter, with the letter co-signed by Rep. French Hill.

    This is in addition to existing legal issues Binance has with the U.S. SEC and the CFTC, and the recent staff departures. Amid these concerns, reports from this week suggested that Binance CEO Changpeng Zhao had seen his net worth drop by $11.9 billion to a current value of $17.3 billion.

    DCG, Genesis and Gemini take the spotlight 

    Notably, Digital Currency Group (DCG) and its bankrupt subsidiary Genesis Global took the spotlight this week along with Gemini, as the trio look to navigate their financial woes. DCG revealed a 23% surge in revenue to $188 million in its third-quarter revenue report. 

    Simultaneously, the company remains committed to resolving the financial obligations associated with its crypto-lending platform, Genesis. The financial boost is attributed to the crypto market’s recent resurgence, marking a rebound from the challenges of the previous year.

    However, DCG is still embroiled in legal troubles with Letitia James, the New York State Attorney General. Alongside Gemini and Genesis, DCG faces a lawsuit alleging involvement in a $1 billion investor-unfriendly scheme relating to Gemini’s Earn program.

    This week, Gemini and Genesis officially entered into a legal tussle over $1.6 billion worth of Grayscale Bitcoin Trust (GBTC) shares. Gemini filed a legal motion, aiming to nullify Genesis’ claim to these shares, stemming from their previous partnership in the Earn program.

    Gemini views these GBTC shares as a potential solution to assist stranded Earn Users who have been unable to access their funds since Genesis halted withdrawals. This conflict occurs within the context of Genesis’ ongoing bankruptcy, and Gemini suggests that Genesis may access funds intended for Earn customers. 

    Bitcoin hits new yearly high above $35K

    The chaos in the crypto scene did little to hamper Bitcoin’s growth. The asset continued to register more gains after its impressive performance last week. Amid the sustained bullish run, reports confirmed that Michael Saylor’s MicroStrategy was now seeing a $54.27 million profit in its bag as BTC traded at $29,925.

    Bitcoin continued the upsurge, eventually rallying to a high of $35,280 on Oct. 24, its highest value this year and since May 2022. The BTC rally reverberated across the crypto ecosystem, triggering an increase in crypto-related shares such as Coinbase’s COIN and Grayscale’s GBTC. As these shares increased, Ark Invest sold $5.8 million worth.

    In the wake of the renewed optimism, several industry leaders and crypto-focused firms began projecting higher price levels, especially in the context of a spot ETF approval. Grayscale predicted a 74% increase in Bitcoin’s value a year after the approval of a spot ETF.

    On Oct. 26, veteran market analyst Peter Brandt asserted that Bitcoin has already witnessed its bottom. The trader projected a sudden surge to new highs, in a journey characterized by rocky price movements. 

    Bitcoin eventually dropped from the $35,000 price threshold but has held up well above $34,000, sustaining the positive sentiments. However, not all pundits are bullish. Glauber Contessoto advised caution amid the price surge, warning it could be a bull trap.

    Overall, this week was generally bullish for Bitcoin, as the asset recorded five winning days out of seven. Bitcoin’s intraday losses only came up on Oct. 26 and 27, when the asset dropped by a mere 1.76% in both days. In all, BTC saw a 14.8% increase this week.

    Elon Musk’s big plans for crypto: analyst

    Elon Musk will likely incorporate Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE) and potentially other major cryptocurrencies into X’s services. The so-called “everything app” could also potentially utilize Lightning Network for instant transfers and have a built-in crypto wallet and exchange.

    If Musk executes these ambitions, it would be a huge catalyst for crypto adoption, according to analyst CryptosRUs. Combined with other potential developments like spot Bitcoin ETF approvals and new regulations in 2024, the analyst predicts it will be a breakout year for the crypto market.

    Also, in an all-hands call on Oct. 26, Musk reportedly shared his vision for X becoming a central hub for financial matters. With previous reports of quiet Dogecoin development and the CEO’s history of sparking price rallies, new 2024 features of X remain of interest to the cryptocurrency industry.


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  • SBF takes the stand, ‘buy Bitcoin’ searches soar and other news: Hodler’s Digest, Oct. 22-28

    SBF takes the stand, ‘buy Bitcoin’ searches soar and other news: Hodler’s Digest, Oct. 22-28

    Top Stories This Week

    Sam Bankman-Fried takes the stand on FTX’s collapse

    Sam “SBF” Bankman-Fried testified this week in his ongoing criminal trial in the Southern District of New York, denying any wrongdoing between FTX and Alameda Research while acknowledging making “big mistakes” during the companies’ explosive growth. Highlights of his testimony include denying directing his inner circle to make significant political donations in 2021, as well as claims that FTX’s terms of use covered transactions between Alameda and the crypto exchange. Additionally, Bankman-Fried testified that he requested additional hedging strategies for Alameda in 2021 and 2022, but they were never implemented. The trial is expected to conclude within the next few days.

    ‘Buy Bitcoin’ search queries on Google surge 826% in the UK

    Google searches for “buy Bitcoin” have surged worldwide amid a major crypto rally, with searches in the United Kingdom growing by more than 800% in the last week. According to research from Cryptogambling.tv, the search term “buy Bitcoin” spiked a staggering 826% in the U.K. over the course of seven days. In the United States, data from Google Trends shows that searches for “should I buy Bitcoin now?” increased by more than 250%, while more niche searches, including “can I buy Bitcoin on Fidelity?” increased by over 3,100% in the last week. Zooming out further, the search term “is it a good time to buy Bitcoin?” saw a 110% gain worldwide over the last week.

    US court issues mandate for Grayscale ruling, paving way for SEC to review spot Bitcoin ETF

    The United States Court of Appeals has issued a mandate following a decision requiring Grayscale Investments’ application for a spot Bitcoin exchange-traded fund (ETF) to be reviewed by the Securities and Exchange Commission (SEC). In an Oct. 23 filing, the “formal mandate” of the court took effect, paving the way for the SEC to review its decision on Grayscale’s spot Bitcoin ETF. The mandate followed the court’s initial ruling on Aug. 29 and the SEC’s failure to present an appeal by Oct. 13. To date, the SEC has yet to approve a single spot crypto ETF for listing on U.S. exchanges but has given the green light to investment vehicles linked to Bitcoin and Ether futures.



    Coinbase disputes SEC’s crypto authority in final bid to toss regulator’s suit

    The U.S. Securities and Exchange Commission overstepped its authority when it classified Coinbase-listed cryptocurrencies as securities, the exchange has argued in its final bid to dismiss a lawsuit by the securities regulator. In an Oct. 24 filing in a New York District Court, Coinbase chastised the SEC, claiming its definition for what qualifies as a security was too wide, and contested that the cryptocurrencies the exchange lists are not under the regulator’s purview. The SEC sued Coinbase on June 6, claiming the exchange violated U.S. securities laws by listing several tokens it considers securities and not registering with the regulator.

    Gemini sues Genesis over GBTC shares used as Earn collateral, now worth $1.6B

    Cryptocurrency exchange Gemini filed a lawsuit against bankrupt crypto lender Genesis on Oct. 27. At issue is the fate of 62,086,586 shares of Grayscale Bitcoin Trust. They were used as collateral to secure loans made by 232,000 Gemini users to Genesis through the Gemini Earn Program. That collateral is currently worth close to $1.6 billion. According to the suit, Gemini has received $284.3 million from foreclosing on the collateral for the benefit of Earn users, but Genesis has disputed the action, preventing Gemini from distributing the proceeds. Genesis filed for bankruptcy in January. It had suspended withdrawals in November 2022, which impacted the Gemini Earn program.

    Winners and Losers

    At the end of the week, Bitcoin (BTC) is at $34,143, Ether (ETH) at $1,789 and XRP at $0.54. The total market cap is at $1.26 trillion, according to CoinMarketCap.

    Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Pepe (PEPE) at 72.08%, Mina (MINA) at 55.47% and FLOKI (FLOKI) at 53.33%. 

    The top three altcoin losers of the week are Bitcoin SV (BSV) at -10.27%, Toncoin (TON) -3.14% and Trust Wallet Token (TWT) at -0.82%.

    For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

    Read also


    Features

    Soulbound Tokens: Social credit system or spark for global adoption?


    Features

    Ethereum restaking: Blockchain innovation or dangerous house of cards?

    Most Memorable Quotations

    “The witness [Sam Bankman-Fried] has an interesting way of responding to questions.”

    Lewis Kaplan, senior judge of the U.S. District Court for the Southern District of New York

    “When it comes to illicit finance, crypto is not the enemy – bad actors are.”

    Cynthia Lummis, U.S. senator

    “I should say, I am not a lawyer, I am just trying to answer based on my recollection. […] At the time [at] FTX, certain customers thought accounts would be sent to Alameda.”

    Sam Bankman-Fried, former CEO of FTX

    “Without prejudging any one asset, the vast majority of crypto assets likely meet the investment contract test, making them subject to the securities laws.”

    Gary Gensler, chair of U.S. Securities and Exchange Commission

    “I do not believe there has been a single serious conversation regarding a settlement between Ripple […] and the SEC. The SEC is pissed and embarrassed and wants $770M worth of flesh.”

    John Deaton, attorney

    “He [Sam Bankman-Fried] thought he was going to take that money, and […] he would out-trade the market and put the money back and end up as a half-a-trillionaire, but it never works like that.”

    Anthony Scaramucci, founder of SkyBridge Capital

    Prediction of the Week 

    Bitcoin beats S&P 500 in October as $40K BTC price predictions flow in

    Bitcoin surfed $34,000 at the end of the week as attention turned to BTC price performance against macro assets. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding steady, preserving its early-week gains.

    The largest cryptocurrency avoided significant volatility as the weekly and monthly closes — a key moment for the October uptrend — drew ever nearer.

    “I think Bitcoin will hang around this range for some time,” popular pseudonymous trader Daan Crypto Trades told X subscribers in one of several posts on Oct. 27. “Roughly $33-35K is what I’m looking at as a range. Eyes on potential sweeps of any of these levels for a quick trade,” he wrote.

    FUD of the Week 

    UK passes bill to enable authorities to seize Bitcoin used for crime

    Lawmakers in the United Kingdom have passed legislation allowing authorities to seize and freeze cryptocurrencies like Bitcoin if used for illicit purposes. Introduced in September 2022, the passed legislation aims to expand authorities’ ability to crack down on the use of cryptocurrency in crimes like cybercrime, scams and drug trafficking. One of the provisions of the bill permits the recovery of crypto assets used in crimes without conviction, as some individuals may avoid conviction by remaining remote.

    Scammers create Blockworks clone site to drain crypto wallets

    Phishing scammers have cloned the websites of crypto media outlet Blockworks and Ethereum blockchain scanner Etherscan to trick unsuspecting readers into connecting their wallets to a crypto drainer. A fake Blockworks site displayed a fake “BREAKING” news report of a supposed multimillion-dollar “approvals exploit” on the decentralized exchange Uniswap and encouraged users to visit a fake Etherscan website to rescind approvals. The fake Uniswap news article was posted on Reddit across several popular subreddits.

    Kraken to suspend trading for USDT, DAI, WBTC, WETH and WAXL in Canada

    Kraken will suspend all transactions related to Tether, Dai, Wrapped Bitcoin, Wrapped Ether and Wrapped Axelar in Canada in November and December. The suspensions may not surprise many Canadian cryptocurrency users, as they come on the heels of several other notable exchanges taking similar actions throughout 2023. OKX ceased operations in Canada in June after Binance announced its intention to do so in May.

    5,050 Bitcoin for $5 in 2009: Helsinki’s claim to crypto fame

    Helsinki has a long and fascinating history with cryptocurrency, including the first exchange of Bitcoin for United States dollars.

    Australia’s $145M exchange scandal, Bitget claims 4th, China lifts NFT ban: Asia Express

    Australian police bust $145 million money laundering scam, Bitget gains market share in Q3, China unblocks NFTs, and more.

    How blockchain games fared in Q3, Upland token on ETH: Web 3 Gamer

    $2.3B tipped into Web3 games so far this year, ex-GTA devs’ studio teams up with Immutable, Brawlers to launch on Epic Games Store, and more.

    Editorial Staff

    Cointelegraph Magazine writers and reporters contributed to this article.

    Cointelegraph By Editorial Staff

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  • FTX founder Sam Bankman-Fried takes the stand: Recap of trial day 14

    FTX founder Sam Bankman-Fried takes the stand: Recap of trial day 14

    Former FTX CEO and Founder Bankman-Friend takes the stand today, blaming Caroline Ellison for poor management in Alameda and admitting to political donations from customer funds. 

    As the historic trial of FTX continues, Sam Bankman-Fried, the accused culprit and defendant, finally took the stand today at the Southern District of New York. Unsurprisingly, Bankman-Fried balmed his former girlfriend and Alameda CEO Caroline Ellison for poor management of loans and credit. He accepted that some mistakes were of his doing, but also denied several claims made by his former colleagues throughout the trial.

    Here are the key highlights from Bankman-Fried’s testimony:

    Testimony of Sam Bankman-Fried

    • Bankman-Fried denies defrauding anyone.
    • He initially borrowed from Genesis, Celsius, BlockFi and Voyegar for Alameda. 
    • The internal name for Alameda was ‘Wireless Mouse’, Bankman-Fried denies anyone calling it ‘Sam’s Crypto Trading Firm’ – which was earlier alleged by his colleagues in the trial.
    • Bankman-Fried took a yearly $200,000 salary from Alameda.
    • He explained the move of FTX and Alameda to Hong Kong and then to the Bahamas was for a more flexible regulatory environment compared to the U.S.
    • The aggressive marketing strategies for FTX were funded by loans from Alameda, most of which came from FTX customer balances.
    • Stressed that Alameda was solely a market maker on FTX and had a massive line of credit that grew into billions over time.
    • Bankman-Fried said that Caroline Ellison was a good manager, but she had no focus on risk management.
    • He claimed ignorance about the “Allow Negative” code, written by FTX co-founder Gary Wang, which functioned as Alameda’s liquidation cushion.
    • He admitted that political donations were made to influence crypto regulations, and Alameda loans funded these donations.
    • Bankman-Fried said that there was a significant drop in Alameda’s liquidity from $40 billion to $10 billion by June 2022 and acknowledged internal concerns about the firm’s solvency.
    • He again blamed Ellison, saying that Alameda didn’t hedge its bets despite his recommendation for a $2 billion safety net.
    • He considered closing down Alameda in 2022, citing ‘there was no right management in place’.
    • Bankman-Fried called Nishad Singh ‘nervous and halting.’ 

    The Testimony is set to continue on Oct. 30, with an impending cross-examination and rebuttal case from prosecutors.

    A verdict is expected to be decided upon before Nov. 3. 


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  • SBF trial day 14: FTX’s Bankman-Fried blames Alameda’s Ellison for absent hedging

    SBF trial day 14: FTX’s Bankman-Fried blames Alameda’s Ellison for absent hedging

    FTX founder Sam Bankman-Fried testified before Judge Kaplan and a jury in a New York federal court claiming his team sometimes made decisions out of his purview and against his instructions.

    Following a fraught mock testimony for Bankman-Fried, Judge Lewis A. Kaplan of the Southern District of New York ruled to allow FTX’s data retention policy during cross-examination. 

    The policy was supposedly drafted by the defendant’s general counsel Daniel Friedberg and speaks to the Signal auto-delete feature used by Bankman-Fried’s companies for internal communications, per InnerCityPress.

    The FTX founder fielded an advice-of-counsel defense built around shifting blame to his legal representatives at the time. It’s unclear if this strategy will ultimately yield Bankman-Fried a not guilty verdict.

    Ellison accused of not hedging

    Bankman-Fried categorically stated that he did not commit fraud at FTX, the crypto exchange he co-founded with his childhood buddy Gary Wang, or at Alameda Research, a trading firm with a massive role in FTX’s general operations. 

    The defendant said he earned $200,000 after starting Alameda from a Berkley office in 2017 at a time when crypto was increasingly capturing the world’s attention. 

    Within 18 months, Bankman-Fried had launched his futures exchange, FTX, and hired Caroline Ellison to join Alameda’s ranks, but admitted that he hid certain shortfalls in the trading firm from his former Jane Street colleague.

    FTX and Alameda moved to Hong Kong in 2021 and then to the Bahamas shortly thereafter, growing organically, according to the former crypto tycoon, as the region’s regulatory environment was more flexible than in the U.S. comparatively.

    The exchange would later employ more aggressive marketing tactics funded by Alameda loans, most of which were taken from FTX customer balances.

    Alameda was strictly a market maker on the exchange with a mammoth line of credit. This credit line grew into billions over time and the firm received custom services to mitigate market-moving price actions, per the defendant’s testimony. 

    We increased the number of servers, for the risk engine. But we learned that if there was an erroneous liquidation of Alameda or any other large account, it would be catastrophic for FTX. So I told Gary [Wang], we have to stop such liquidations of Alameda’s account. They told me they’d done it.

    Sam Bankman-Fried, FTX founder

    Bankman-Fried’s testimony suggested that he was unaware of “Allow Negative”, the special code written by FTX co-founder Wang, which served as Alameda’s liquidation cushion or bypass. According to the defendant, the actions of his team and the absence of risk management protocols unraveled FTX, not his decisions. 

    Bankman-Fried said political donations were made to lobby policymakers on crypto regulations and support humanitarian initiatives, such as Michael Sadowsky’s Guarding Against Pandemics. 

    These donations, admittedly funded by loans from Alameda, would later buy the defendant time in front of the U.S. Congress. 

    By June 2022, Alameda’s liquidity had shrunk from $40 billion to $10 billion. Former chief developer Nishad Singh raised the alarm about an $8 billion bug, and ex-Alameda CEO Caroline Ellison voiced doubts about the firm’s solvency, per Bankman-Fried’s account. 

    Yes. Nishad expressed concerns about marketing, brand partnerships, and K5. I told him the marketing team was a mess. I said I didn’t greenlight certain new initiatives and told him other initiatives were succeeding, like the MLB umpire patch.

    Sam Bankman-Fried, FTX founder

    FTX’s founder said Alameda didn’t hedge its bets despite his purported advice to position a $2 billion safety net. In fall of 2022, Bankman-Fried considered shuttering Alameda and told Adam Yedidia that FTX wasn’t “bulletproof”.

    Bankman-Fried’s testimony continues on Oct. 30, per Judge Kaplan’s directive, where prosecutors plan a lengthy cross-examination and a rebuttal case. The Judge hinted that a charge conference, where lawyers discuss final objections and jury instructions, could take place before Nov. 3. 


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  • FTX And Alameda Research Sell $13.35 Million Of Assets, What’s Their Strategy?

    FTX And Alameda Research Sell $13.35 Million Of Assets, What’s Their Strategy?

    Addresses related to FTX, the bankrupt crypto exchange, and Alameda Research, the trading wing associated with the exchange, have cumulatively transferred $13.35 million of assets to Binance, a crypto exchange via Wintermute Trading, over the last 24 hours. 

    Related Reading: Linqto’s Ray Fuentes Reveals The Factors That Could Drive A Ripple IPO In 2024

    FTX Sells $13.35 Million Of Coins

    According to Lookonchain, an on-chain tracker, FTX and Alameda Research last deposited COMP, the governance token of Compound, and RNDR, the native token of Render, on October 26, an indicator that the project is actively liquidating assets after finding approval in late September 2023.

    FTX transfer tokens to Binance| Source: Lookonchain on X

    COMP prices are relatively stable at spot rates, steadying at a key resistance level. The token is also up 20% from October 2023 lows and is within a bullish formation, moving inside the range established from June to July 2023. Even so, for the uptrend to take shape, traders expect more gains that would push the token above September 2023 highs at $50, a psychological level.

    COMP price on October 26| Source: COMPUSDT on Binance, TradingView
    COMP price on October 26| Source: COMPUSDT on Binance, TradingView

    On the other hand, RNDR is extending gains, marching higher when writing. To illustrate, the token is up 60% from September lows, with bulls remaining resilient, looking at the formation in the daily chart. Bulls have been shaking off bear attempts as they target to reclaim May 2023 highs at around $2.9. This is a critical liquidation line that, if broken, could see RNDR register new 2023 highs.

    FTX received court approval to sell tokens and repay creditors in September 2023. Judge John Dorsey of the U.S. Bankruptcy Court in the District of Delaware approved the motion, allowing FTX to sell up to $100 million of tokens weekly, including Bitcoin and Solana, to repay its creditors.

    Then, the exchange said the proceeds from the sale would be used to repay its creditors in a “fair, orderly, and efficient manner.” As part of this, FTX will also liaise with creditors to develop a distribution plan.

    FTX Is Bankrupt And SBF Is Under Trial In Manhattan

    FTX went bankrupt in late 2022, triggering a series of liquidations that saw leading crypto assets slump to worrying levels, including Bitcoin and Ethereum. By Q4 2022, Bitcoin was changing hands at around $16,000, worsened by sentiments that saw crypto users rush to exchanges, withdrawing their coins, worrying that there would be a contagion.

    The leg down, however, marked the last phase of the bear run since asset prices spectacularly recovered in Q1 2023 before closing H1 2023 with solid gains. The Sam Bankman-Fried (SBF) trial in a Manhattan court is ongoing while FTX managers search for ways to make creditors whole. SBF is blamed for mismanaging the crypto exchange and pilfering user funds into billions.

    Feature image from Canva, chart from TradingView

    Dalmas Ngetich

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  • SBF trial day 13: FTX founder claims ignorance in mock testimony

    SBF trial day 13: FTX founder claims ignorance in mock testimony

    United States v Sam Bankman-Fried continued its fourth week at trial with testimony from the FTX founder himself however, Judge Kaplan excused the jury until Oct. 27 to thrash out details of the defendants’ statements.

    What has been described by some as America’s largest crypto fraud case could come to a close by early November 2023, with FTX founder Sam Bankman-Fried testifying in his criminal trial for fraud on Oct. 26 per InnerCityPress.

    Bankman-Fried is one of four witnesses, and his testimony is expected to form the lion’s share of the defense’s bid to challenge arguments claiming that FTX’s former CEO broke federal financial laws.

    Defense attorneys moved for a motion to dismiss the case, arguing a deficit of evidence that proves fraud and money laundering. The FTX founder is notably on trial for seven counts of these charges. 

    Judge Kaplan denied the motion after federal prosecutors cited testimony from BlockFi CEO Zac Prince and alleged fraudulent transactions exposed by previous witnesses. 

    Final government witnesses

    FBI agent Mark Troyano said Bankman-Fried was part of over 300 Signal group chats during his time leading crypto trading firm Alameda Research and FTX, his crypto exchange. The auto-delete function was active on at least 280 of these internal chat rooms according to the witness. 

    Ex-Alameda CEO Caroline Ellison claimed Bankman-Fried insisted on the auto-delete to shroud contentious conversations from regulators if they ever came probing. 

    FTX founder Sam Bankman-Fried testifies

    Bankman-Fried told the court, absent jury, that auto-delete was not turned on for decision-making channels and Signal was employed to mitigate external attacks as FTX had suffered third-party breaches in the past. 

    The defendant confirmed that Alameda Research funded venture investments but noted that FTX general counsel Daniel Friedberg and Can Sun oversaw the legal paperwork that restructured these capital transactions as well as FTX’s terms of service.

    Bankman-Fried admitted to not reading the whole document but instead trusted the work of internal lawyers and consultants from Fenwick & West. Friedberg and lawyers at the crypto exchange also knew about the auto-delete on Signal, according to the witness whose mock testimony featured several “I don’t recall” statements.

    To his knowledge, the quant trading firm didn’t dip into customer funds and investments had to be made via loans to override perceived conflicts of interest.

    Bankman-Fried’s strategy seemed to shift the blame to his legal advisers at the time, claiming ignorance regarding specific matters like Alameda’s exemption from liquidation protocols on FTX. 

    The witness also explained that in-house attorneys drafted payment agent agreements to manage deposits into Alameda’s North Dimension bank account on behalf of FTX customers.

    Bankman-Fried’s full testimony before Judge Kaplan and the jury is scheduled for Oct. 27 in what is lined up to be the final witness testimony in his trial on fraud and money laundering charges. 


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    Naga Avan-Nomayo

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  • FTX, Alameda addresses move $10m to exchanges

    FTX, Alameda addresses move $10m to exchanges

    FTX and its sister platform, Alameda Research, have recently transferred $10 million worth of crypto assets to Coinbase, Binance and Wintermute.

    These transfers came from three addresses associated with FTX and Alameda, with the funds consolidated into one central address. The movements have triggered speculation of an impending selloff amid FTX founder Sam Bankman-Fried’s criminal trial in a United States court.

    Notably, an FTX-affiliated address sent 2,904 Ether (ETH) worth $5.14 million to the central address, according to security firm PeckShield. On-chain data confirms that this transaction occurred yesterday at 08:16 PM UTC.

    A few minutes after receiving the 2,904 ETH tokens, the address sent 1,000 ETH to a Coinbase address and 1,904 ETH tokens to a Binance deposit address on Wintermute. This represented the first batch of transactions.

    Moreover, the second batch occurred hours later and saw an FTX cold wallet move 1,341 Maker (MKR) worth $2.09 million to the same address. Afterward, an Alameda consolidation address transferred 198,807 Chainlink (LINK) and 11,974 Aave (AAVE) to the address. These tokens were worth $3.16 million. 

    Shortly after this second tranche of inflows, the address moved the tokens out, sending them to the same Wintermute-hosted Binance deposit address. The wallet now holds only $69 worth of ETH and other altcoins.

    Recent FTX transactions

    Since the company filed for bankruptcy, the recent slew of transfers is the latest in a long line of fund movements carried out by FTX wallets. Last week, the FTX bankruptcy estate staked these assets, including $122 million worth of Solana (SOL) and $5 million worth of ETH.

    The transactions coincide with the 12th trial day of Sam Bankman-Fried, who is facing charges bordering on fraud in a Manhattan federal court. The trial has exposed several revelations through testimonies from Bankman-Fried’s former associates, including Caroline Ellison, former CEO of Alameda.


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    Wahid Pessarlay

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  • Solana’s Strong Recovery in 2023: SOL vs ETH Ratio Hits Yearly Highs

    Solana’s Strong Recovery in 2023: SOL vs ETH Ratio Hits Yearly Highs

    Solana had a strong association with FTX, and the latter’s collapse last year had significant repercussions for the SOL token. However, the seventh-largest crypto-asset has pursued a strong recovery this year.

    According to Nansen’s latest analysis, SOL has been trending positively since the summer. In fact, the SOL vs ETH ratio was found to have been breaking higher, nearing highs not seen all year.

    • During the second quarter of 2023, the SEC filed regulatory complaints against Coinbase and Binance, both of which had listed SOL as a security alongside other assets.
    • As a result of these complaints, SOL experienced a significant 34% decrease in its price.
    • However, the token rebounded stronger than the other assets identified as securities by the end of the second quarter and maintained that positive momentum into the third quarter.
    • Following a brief decline, possibly attributed to the imminent liquidation of Alameda/FTX’s SOL, the crypto asset closed the quarter with a market capitalization of $8.4 billion, reflecting a 17% increase quarter-over-quarter.
    • Particularly noteworthy is SOL’s outperformance compared to assets with similar market capitalization; it climbed from the 10th to the 7th position in market cap rank over the same quarter.
    • Additionally, Solana’s DeFi TVL increased 32% QoQ to $368 million, as a recent Messari report while the growth is fueled by DeFi and liquid staking protocols rolling out points programs, led by MarginFi, Jito, Cypher, and BlazeStake, among others.
    • Moreover, the total revenue, including all fees accumulated by the protocol, jumped by 19% in USD and reached a whopping $4 million. This marked a 10% growth in SOL terms, amounting to 185,400 SOL.
    • Solana transaction fees were found to be among the “steadiest and cheapest” of all networks.
    • In the third quarter, the average non-vote transaction fee was $0.0002.
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    Chayanika Deka

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  • NY sues crypto firms, FTX’s Nishad faces 75 years in jail, and Grayscale’s new BTC filing: Hodler’s Digest, Oct. 15-21

    NY sues crypto firms, FTX’s Nishad faces 75 years in jail, and Grayscale’s new BTC filing: Hodler’s Digest, Oct. 15-21

    Top Stories This Week

    Grayscale files for new spot Bitcoin ETF on NYSE Arca

    Major cryptocurrency investment firm Grayscale Investments has filed a new application with the U.S. Securities and Exchange Commission for a new spot Bitcoin exchange-traded fund (ETF). The new filing aligns with Grayscale’s ongoing effort to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF, according to a statement from the firm. The news comes weeks after Grayscale won an SEC lawsuit for its spot Bitcoin ETF review, with a court of appeals ordering the SEC to explain why it rejected Grayscale’s application in June 2023. The company also filed with the SEC to list an Ether futures ETF in September.

    New York Attorney General sues Gemini, Genesis, DGC for allegedly defrauding investors

    New York’s attorney general has filed a lawsuit against cryptocurrency firms Gemini, Genesis and Digital Currency Group (DCG) for allegedly defrauding more than 23,000 investors through the Gemini Earn investment program. The suit claims that Gemini assured investors that the program was a low-risk investment, while investigations carried out by the office of New York State Attorney General Letitia James found that Genesis’ financials “were risky.” The lawsuit also charges Genesis’ former CEO, Soichiro Moro, and its parent company’s CEO, Barry Silbert, with defrauding investors by attempting to conceal more than $1.1 billion in losses. In addition, the court case looks to ban Gemini, Genesis and DCG from operating in the financial investment industry in New York.

    Former FTX engineering director faces up to 75 years in prison following guilty plea

    Nishad Singh, the former engineering director at now-defunct crypto exchange FTX, faces up to 75 years in prison for charges related to defrauding users of the crypto exchange. He pleaded guilty to fraud charges as part of his cooperation agreement with the U.S. prosecutors. During his testimony this week, Singh said that when liquidity issues at FTX began in November 2022, he felt “suicidal for some days” while dealing with alleged inconsistencies between the exchange’s public statements and its activities behind the scenes. Singh also claimed that Bankman-Fried had the habit of deciding on purchases through Alameda Research by himself.



    Binance shutting down European Visa debit card in December

    Binance Visa debit card services will close down in the European Economic Area in December, marking the latest setback for Binance. The termination of the card services was announced a day after the exchange restored euro deposits and withdrawals, which had been unavailable for a month after payments processor Paysafe dropped the exchange. Binance is still not onboarding new users in the United Kingdom due to the loss of a third-party service provider.

    Elon Musk, Mark Cuban team up to contest SEC trial strategies

    Elon Musk, Mark Cuban and others have collaboratively submitted a shared amicus brief to the Supreme Court of the United States to raise concerns about the U.S. Securities and Exchange Commission’s (SEC) approach to conducting internal proceedings without the inclusion of juries. The context of this legal challenge centers around the SEC vs. Jarkesy case. George Jarkesy argues that the SEC’s internal adjudication process, which lacks a jury and is overseen by an administrative law judge appointed by the commission, contradicts his Seventh Amendment rights. Effectively resulting in a single entity fulfilling the roles of judge, jury and enforcer.

    Winners and Losers

    At the end of the week, Bitcoin (BTC) is at $29,590, Ether (ETH) at $1,607 and XRP at $0.52. The total market cap is at $1.12 trillion, according to CoinMarketCap.

    Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Bitcoin SV (BSV) at 59.00%, Stacks (STX) at 25.91% and MX TOKEN (MX) at 25.26%. 

    The top three altcoin losers of the week are Conflux (CFX) at -8.03%, Frax Share (FXS) and Sui (SUI) at -6.35%.

    For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

    Read also


    Features

    Unforgettable: How Blockchain Will Fundamentally Change the Human Experience


    Features

    The Metaverse is awful today… but we can make it great: Yat Siu, Big Ideas

    Most Memorable Quotations

    “We are all part of a bigger game, and Bitcoin is one of the strongest levers in that.”

    Edward Snowden, technologist and whistleblower

    “Using publicly available information to learn is not stealing. Nor is it an invasion of privacy, conversion, negligence, unfair competition, or copyright infringement.”

    Google

    “I felt betrayed, something I’d put in blood, sweat and tears for five years turning out so horrible.”

    Nishad Singh, former engineering director of FTX

    “The games funded 2 years ago are going live over the next 12 months. We will see hits.”

    Robbie Ferguson, co-founder and president of Immutable

    “After extensive DAO forum discussion followed by community vote, the sunsetting of the Lido on Solana protocol was approved by Lido token holders and the process will begin shortly.”

    Lido Finance

    “Any innovation — especially this one with financial impact, cultural value and status — will attract questioning during its downs.”

    Anjali Young, co-founder of Collab.Land

    Prediction of the Week 

    BTC price hits 2-month high amid bet Bitcoin will break $32K ‘soon’

    On Oct. 20, data from Cointelegraph Markets Pro and TradingView captured new two-month Bitcoin highs of $30,233 on Bitstamp. BTC price showed continued strength during the Asia trading session on the same day, with a slight comedown taking the spot price back below $29,500.

    With volatility still evident, market participants argued that a weekly candle close was needed in order to establish the rally’s true staying power. For Keith Alan, co-founder of monitoring resource Material Indicators, the 100-week moving average (MA) at $28,627 was of particular importance.

    “This move is one to watch, but what I’m watching for right now is to see if this Weekly candle closes above the 100-Week MA and if next week’s candle can stay above it with no wicks below,” Alan wrote in part of an X post on the day. “Some might consider that a confirmation of a bull breakout, but this market is known for squeezes and fake outs so I’m looking for more confirmations. For me BTC will also need to take out prior resistance at $30.5k, $31.5k and ultimately $33k to call a bull breakout confirmed and validated.”

    FUD of the Week 

    Fantom Foundation hot wallet hacked for $550K

    The Fantom Foundation, the developer of the Fantom network, has been hacked for over $550,000 worth of cryptocurrency. The foundation confirmed the attack on X, claiming that most of the funds stolen belonged to other users and that 99% of the foundation’s funds remain safe. Blockchain security researchers initially reported that the attacker stole approximately $7 million in crypto. The Fantom Foundation later released an official statement saying that some of the wallets labeled “Fantom: Foundation wallet” were mislabeled by block explorers and that not all the stolen funds were from the foundation.

    TrueCoin’s third-party vendor breach potentially leaks TUSD user data

    TrueUSD (TUSD) announced a potential leak of certain Know Your Customer (KYC) and transaction history data after one of TrueCoin’s third-party vendors was compromised. The company was the operator of the TUSD stablecoin until July 13, 2023. The impact of the attack and the resultant data leak is yet to be identified, as the total number of users’ data was not revealed during the announcement. Data collected from such breaches — names, email addresses and phone numbers, among others — are typically used for phishing attacks. Attackers reach out to unwary investors by mimicking various crypto services, often promising high profits in short amounts of time.

    Web3 game project allegedly hired actors to pose as executives in $1.6M exit scam

    The development team for gaming project FinSoul carried out an alleged exit scam, siphoning away $1.6 million from investors through market manipulation, according to a recent report from blockchain security platform CertiK shared with Cointelegraph. The FinSoul team allegedly hired paid actors to pretend to be its executives, then raised funds for the sole purpose of developing a gaming platform. However, instead of actually creating the platform, the FinSoul team allegedly transferred $1.6 million in bridged Tether from investors to itself. Blockchain data indicates developers then laundered the funds through cryptocurrency mixer Tornado Cash.

    Big Questions: What did Satoshi Nakamoto think about ZK-proofs?

    What was once a passing interest of Bitcoin inventor Satoshi Nakamoto, zero-knowledge-proof technology is now a major part of the crypto world.

    Ethereum restaking: Blockchain innovation or dangerous house of cards?

    “Restaking” involves reusing staked Ether to earn fees and rewards. The restaked tokens can then help secure and validate other protocols. But many fear restaking could disrupt Ethereum’s chain itself.

    Bitmain’s revenge, Hong Kong’s crypto rollercoaster: Asia Express

    Bitmain allegedly fires staff for speaking out against salary cuts, Hong Kong investors lose faith in crypto after JPEX scandal, Bitget gets a new crypto credit card and more.

    Editorial Staff

    Cointelegraph Magazine writers and reporters contributed to this article.

    Cointelegraph By Editorial Staff

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