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Tag: Digital currencies

  • How virtual clothes could help solve fashion’s waste problem | CNN Business

    How virtual clothes could help solve fashion’s waste problem | CNN Business

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    London
    CNN
     — 

    Fashion’s ephemeral nature might seem an odd bedfellow for the blockchain, an online ledger that’s designed to be permanent. But the industry is finding ways to harness it and other digital tools to reduce waste and push fashion into the future.

    Italian company Lablaco is working with fashion houses and brands to digitize their collections in the burgeoning “phygital” fashion market — when customers buy both a physical fashion item and its digital “twin,” designed to be collected or worn by avatars in virtual environments like the metaverse.

    Lablaco was founded in 2016 by Lorenzo Albrighi and Eliana Kuo. Both had backgrounds in luxury fashion, but were looking to improve the industry’s sustainability credentials and promote circular fashion — the practice of designing and producing clothes in a way that reduces waste.

    The pair launched the Circular Fashion Summit in 2019 and Lablaco worked with retailer H&M to introduce a blockchain-based clothes rental service in 2021.

    Pushing fashion into digital spaces helps generate data that is vital in efforts to move toward circular fashion, they argue. With Lablaco’s model, physical and digital items remain paired even after sale, so if a physical item is resold, the digital equivalent is transferred to the new owner’s digital wallet. The transparency of blockchain technology means the new owner can be assured of its authenticity and the item’s creator can follow its aftersales journey.

    “If you don’t digitize the product itself, you cannot have any data to measure, and you don’t know what’s the impact of the fashion,” Albrighi tells CNN Business.

    The textile and fashion industry creates roughly 92 million tons of waste annually, and digital fashion could have a role in reducing that figure.

    Kuo says digital spaces could be used as a testbed for the physical world. For example, a designer could release an item of digital clothing in 10 colors in the metaverse, and use the sales data to inform which colors to use for the real-world version. “It becomes automatically an on-demand model, which really can reduce the fashion waste,” she says.

    Trying on virtual clothes could also reduce the amount of clothes that are returned in the physical world, says Albrighi. He adds that staging fashion shows in virtual spaces reduces the need for the fashion world to travel. Both interventions have the potential to reduce the industry’s carbon footprint.

    But for these innovations to become widespread, Albrighi says incentivizing designers is key. With the phygital model, the transparency of the blockchain could allow brands to receive royalties when an item is resold throughout its lifetime — a way to “produce less and actually earn more.”

    “It’s the beginning of a brand new industry,” he says.

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  • Sam Bankman-Fried to appear in court Monday to drop extradition fight | CNN Business

    Sam Bankman-Fried to appear in court Monday to drop extradition fight | CNN Business

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    CNN
     — 

    Former FTX CEO Sam Bankman-Fried is expected to appear in a Bahamas court on Monday to reverse his decision to contest extradition to the US, a person familiar with the matter told CNN.

    The New York Times also reported that Bankman-Fried is expected to agree to extradition to the US, citing a person briefed on the matter.

    CNN has reached out to Bankman-Fried’s lawyers, and the Bahamas Attorney General.

    The Bahamas police PIO Superintendent Chrislyn Skippings told CNN on Sunday, “If he does go to court tomorrow it would be at Nassau street court complex,located on Nassau street and South streets.”

    Last Tuesday, federal prosecutors from the Southern District of New York charged Bankman-Fried with eight counts of fraud and conspiracy. Bankman-Fried could face up to 115 years in prison if convicted on all eight counts against him, though he likely wouldn’t get the maximum sentence.

    On top of that, US market regulators filed civil lawsuits accusing Bankman-Fried of defrauding investors and customers, saying he “built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto.”

    Bankman-Fried remains in the Bahamas, where FTX was based, and was arrested last Monday night. He was arraigned Tuesday, and a Bahamian judge denied his request for bail, saying that he posed a flight risk. His extradition to the United States could take weeks.

    – Allison Morrow contributed to this report.

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  • Parents of Sam Bankman-Fried face scrutiny over their roles in FTX | CNN Business

    Parents of Sam Bankman-Fried face scrutiny over their roles in FTX | CNN Business

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    New York
    CNN
     — 

    Sam Bankman-Fried’s multibillion-dollar crypto empire was run primarily by “grossly inexperienced and unsophisticated individuals” who failed to institute basic corporate controls and even relied on QuickBooks to do their accounting, according to investigators.

    But standing by Bankman-Fried as his companies FTX and Alameda grew (and subsequently collapsed) were two respected Ivy-League trained lawyers who, potentially, should have spotted the red flags.

    Now, Joseph Bankman and Barbara Fried, the FTX founder’s parents, may face legal troubles of their own.

    Bankman-Fried, his parents and other employees “used FTX customer funds for a variety of personal expenditures, including luxury real estate purchases, private jets, documented and undocumented personal loans and personal political donations,” according to a civil lawsuit filed this week by the Commodity Futures Trading Commission, the US derivatives market regulator.

    A representative for Bankman and Fried didn’t immediately respond to requests for comment. Bankman-Fried’s lawyer declined to comment when asked about scrutiny of his parents.

    Bankman-Fried, who was arrested on Monday night at his luxury residence in the Bahamas on eight federal criminal counts, told the New York Times before his arrest that his parents “weren’t involved in any of the relevant parts” of the business.

    Bankman and Fried, both Stanford University law professors, weren’t identified by name in the CFTC suit, and haven’t been charged in their son’s case, which prosecutors are calling one of the biggest financial frauds in US history.

    But now their role in their son’s crypto business is under investigation by FTX’s new management, which is working closely with federal prosecutors and US markets regulators.

    Bankman is a Yale-educated scholar in the field of tax law, as well as a clinical psychologist who writes on the intersection of law and psychology. That expertise could become a liability if he is eventually charged with wrongdoing.

    “He is a highly knowledgeable and deeply expert person in areas that concern the set-up and operation of complex companies,” said Yesha Yadav, professor of law at Vanderbilt University. “Arguably, his qualifications and academic stature can work against him as part of any legal case, because the argument may be made that he really should have spotted problems.”

    Fried, whose “scholarly interests lie at the intersection of law, economics, and philosophy,” according to her Stanford bio, earned her law degree from Harvard.

    “I can’t imagine a world where Bankman-Fried’s parents were not his financial and legal advisers,” said Matthew Barhoma, a criminal defense attorney in Los Angeles, who is not involved in the case.

    The new CEO of FTX is John Ray III, a restructuring expert tasked with shepherding the company through its complex bankruptcy. Testifying before a House committee on Tuesday, Ray confirmed that his team is investigating his predecessor’s parents.

    “We indicated that Mr. Bankman had given legal advice,” Ray told lawmakers, noting he wasn’t sure whether the father had employee status but that “the family did receive payments.”

    Bankman and Fried have been in the Bahamas with their 30-year-old son for more than a month as his troubles piled up, according to the Wall Street Journal. They have told friends that their son’s legal bills will likely wipe them out financially, according to the paper.

    “This appears to be a really tragic part of this fallout,” said Yadav. “His parents, by all accounts, appear deeply devoted to their son and have long been viewed as stand-up members of the Stanford faculty and legal academy.”

    On Tuesday, the couple were in the Nassau courtroom for their son’s arraignment. A judge ordered that Bankman-Fried must remain in custody after denying a request for bail, calling him a flight risk.

    Bankman-Friend’s legal team has said it will fight US extradition efforts.

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  • Everything you need to know about the FTX saga that unfolded today | CNN Business

    Everything you need to know about the FTX saga that unfolded today | CNN Business

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    New York
    CNN
     — 

    John J. Ray III, who made his name overseeing the liquidation of Enron in the early 2000s, is the man in charge of sifting through the rubble of FTX, the once-mighty cryptocurrency exchange — founded in 2019 and run into the ground by 2022 by Sam Bankman-Fried.

    On Tuesday, Ray testified before the House Financial Services Committee, relaying what he could about the company he took over just four weeks ago. When a congressman asked Ray how his experience with FTX compares with Enron, Ray was quick to make the distinction clear:

    “The crimes that were committed [at Enron] were highly orchestrated financial machinations by highly sophisticated people to keep transactions off balance sheets,” Ray told lawmakers. FTX, on the other hand, was “not sophisticated at all.”

    “This is really old-fashioned embezzlement,” Ray continued. “This is just taking money from customers, and using it for your own purpose.”

    In other words: Look, there’s a lot going on here, but don’t let all the talk of digital assets confuse you — this is a con as old as time.

    Mark Cohen, a lawyer for Bankman-Fried, said his client “is reviewing the charges with his legal team and considering all of his legal options.”

    Federal prosecutors from the Southern District of New York (aka, a really aggressive, elite bunch of lawyers who rarely lose when it comes to white-collar cases) charged Sam Bankman-Fried with eight charges of fraud and conspiracy. They say he misappropriated FTX customers’ deposits by using those funds to pay expenses and debts of Alameda, his crypto hedge fund.

    US Attorney Damian Williams called the FTX case “one of the biggest financial frauds in American history.”

    Meanwhile, US markets regulators filed civil lawsuits accusing Bankman-Fried of defrauding investors and customers, saying he “built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto.”

    And as if all that weren’t enough, Bankman-Fried’s successor, Ray, spent the day calling out the colossal mismanagement that took place before FTX and Alameda collapsed. In addition to calling the previous leaders “a very small group of grossly inexperienced and unsophisticated individuals” — under oath, mind you — Ray also illustrated that mismanagement by revealing that FTX used QuickBooks to run its business, which was valued at more than $30 billion at its peak. (Ray clarified: “Nothing against QuickBooks. It’s a very nice tool. Just not for a multibillion-dollar company.”)

    So much… but I’ll stick to the highlights.

    Bankman-Fried could face up to 115 years in prison if convicted on all eight counts against him in a federal indictment unsealed Tuesday morning, according to congressional statutory maximum sentencing guidelines.

    (That said, he likely wouldn’t get the maximum sentence, and it’s not uncommon for a judge to have those sentences run concurrently.)

    Bankman-Fried remains in the Bahamas, where FTX was based, and was arrested Monday night. He was arraigned Tuesday, and a Bahamian judge denied his request for bail, saying that he posed a flight risk. (His extradition to the United States is in the works, but that process can take weeks.)

    There’s still a ton we don’t know about the case. But the fact that prosecutors put together an eight-count, 14-page indictment just four weeks after FTX filed for bankruptcy suggests prosecutors may have an ace in the hole, and/or a preponderance of evidence against the company. (The SDNY are an aggressive people, but they are not sloppy, and they don’t indict without a solid case.)

    Several lawyers not involved in the case have told me that the speed of Bankman-Fried’s arrest signals that former FTX employees may be aiding prosecutors.

    “The smart move by former employees would be to rush to become a cooperator in exchange for more lenient treatment, and it would not be surprising to learn that one or more of them had done so,” said Howard A. Fischer, a former SEC lawyer. He added: “The fact that only one person has been charged so far would seem to indicate this as well.”

    Correction: An earlier version of this story incorrectly identified John Ray. He is Sam Bankman-Fried’s successor.

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  • US lawmakers set to grill Sam Bankman-Fried on the collapse of FTX | CNN Business

    US lawmakers set to grill Sam Bankman-Fried on the collapse of FTX | CNN Business

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    New York
    CNN
     — 

    With his vast crypto empire in ruins, Sam Bankman-Fried is preparing to be grilled by US lawmakers who are demanding answers about how his digital asset exchange, FTX, came unraveled, leaving at least a million customers unable to access their funds.

    Bankman-Fried tweetedf Friday that he was willing to appear Tuesday before the House Financial Services Committee, which is investigating the crypto-industry titan’s spectacular collapse last month.

    The 30-year-old entrepreneur, who resigned as CEO at the same time FTX and dozens of affiliated companies filed for bankruptcy, said there would be a “limit to what I will be able to say, and I won’t be as helpful as I’d like,” in response to Rep. Maxine Waters, the Democratic chairwoman of the committee. “But as the committee still thinks it would be useful, I am willing to testify on the 13th.”

    Also testifying Tuesday will be John Ray, a veteran restructuring expert who’s been tasked with shepherding FTX through bankruptcy as its new chief executive.

    “The scope of the investigation underway is enormous,” Ray said in prepared remarks released Monday.

    While the probe isn’t completed, Ray said, FTX’s collapse appears to stem from the concentration of power “in the hands of a very small group of grossly inexperienced and unsophisticated individuals” who failed to implement virtually any corporate controls.

    Ray also states as fact that “customer assets from FTX.com were commingled with assets from the Alameda trading platform.” That’s a key issue for investigators, as FTX and Alameda were, on paper, separate entities.

    Bankman-Fried has publicly stated that he never “knowingly” commingled funds.

    A representative for Bankman-Fried’s lawyer said the FTX founder would testify remotely from the Bahamas, where the company was based.

    The representative declined to comment on whether Bankman-Fried would also testify before a Senate Banking Committee hearing on Wednesday.

    Tuesday’s hearing is set to begin at 10 a.m. ET.

    Speaking to Congress is familiar terrain for the crypto celebrity-turned-pariah, who had cultivated a reputation as the industry Good Guy in Washington. He and other FTX executives made lavish political and charitable donations while advocating for legislation that would clarify the regulatory bounds of the digital asset space.

    In FTX’s heyday, Bankman-Fried regularly appeared on congressional panels, charming lawmakers and pushing for light-touch regulation of the nascent industry. Bankman-Fried himself gave roughly $40 million to campaigns and political action committees, largely backing Democrats, during the 2022 midterm election cycle, according to Federal Election Commission records.

    This time around, though, he’s unlikely to get the same warm welcome, as lawmakers and lobbying groups who’d aligned with FTX are scrambling to distance themselves from one of the most shocking corporate implosions in history.

    In the weeks since his companies collapsed, multiple investigations, including a criminal probe into FTX and its sister hedge fund, Alameda, have begun that could lead to charges against Bankman-Fried, legal experts say. At the same time, SBF has been regularly tweeting and granting interviews with the media, casting himself as a somewhat bumbling but ultimately well-meaning chief executive who got out over his skis.

    “I didn’t knowingly commit fraud,” he told the BBC over the weekend. “I didn’t want any of this to happen. I was certainly not nearly as competent as I thought I was.”

    That sentiment echoes statements he previously made at the New York Times’ DealBook Summit and in an interview with ABC’s “Good Morning America.”

    His testimony to Congress, however, carries additional legal weight.

    “SBF is putting himself at significant risk by testifying before Congress,” said Howard Fischer, a former Securities and Exchange Commission lawyer. “”Anything SBF says that is contradicted by either documentary evidence or the statements of other people will be grounds to cast doubt on his credibility.

    Further, Fischer says, if his testimony before Congress is “substantially impugned” by other evidence, Bankman-Fried “might also face charges relating to that.”

    Despite SBF’s media tour, he’s largely evaded specifics around how the wheels came off FTX, once privately valued at more than $30 billion. In early November, when a prominent investor publicly announced he would be liquidating his holdings of FTX, it sparked a panic that amounted to a run on the bank. FTX faced a liquidity crunch so severe it was forced to file for bankruptcy less than a week later.

    In a tweet last week, Bankman-Fried said he would “shed what light I can,” including on what he thinks led to the crash and his own failings as CEO.

    Key questions that lawmakers and prosecutors are expected to focus on relate to the potential misuse of customer funds.

    “The questions are all going to be about co-mingling of assets,” said David Maria, head of litigation and regulatory affairs at the crypto exchange Bittrex … “I think there’s gonna be a lot of, ‘I don’t remember, I don’t know, I don’t have access to those files.’ “

    Ray, the new CEO who is scheduled to testify ahead of Bankman-Fried, may be able to offer more substantive insights into lawmakers’ questions given his access to the company’s financial records and unique insight into how it the business was run, Maria said.

    One of the key questions about FTX stems from a Reuters report last month that says Bankman-Fried built a “backdoor” into FTX’s accounting system, allowing him to alter the company’s financial records without tripping accounting red flags, as That Reuters report said Bankman-Fried used this “backdoor” to transfer $10 billion in FTX customer funds to Alameda, the hedge fund, and at least $1 billion is now missing.

    Bankman-Fried has denied knowledge of any such backdoor. “I don’t even know how to code,” he told cryptocurrency vlogger Tiffany Fong in an interview last month.

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  • US lawmakers want answers from FTX’s Sam Bankman-Fried | CNN Business

    US lawmakers want answers from FTX’s Sam Bankman-Fried | CNN Business

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    New York
    CNN
     — 

    Lawmakers are demanding that Sam Bankman-Fried, the founder of the failed crypto exchange FTX, appear before the Senate Banking Committee next week over “significant unanswered questions ” surrounding the collapse of his companies.

    In a letter to Bankman-Fried and his lawyer, the committee’s Democratic chairman, Sen. Sherrod Brown of Ohio, and Republican Sen. Pat Toomey of Pennsylvania wrote that the American people need answers about Bankman-Fried’s “misconduct” leading to the collapse of FTX and its sister hedge fund, Alameda, both of which filed for bankruptcy on November 11.

    “You must answer for the failure of both entities that was caused, at least in part, by the clear misuse of client funds and wiped out billions of dollars owed to over a million creditors,” the senators wrote.

    It wasn’t clear whether Bankman-Fried would comply. A representative for his attorney referred to Bankman-Fried’s tweet on Sunday in which he told Rep. Maxine Waters, a California Democrat, that he couldn’t commit to testifying at a hearing scheduled for December 13, one day before the Senate committee’s hearing. “Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain,” Bankman-Fried wrote. “I’m not sure that will happen by the 13th.”

    Brown and Toomey said in their letter that the committee would “consider further action if he does not comply.”

    “There are still significant unanswered questions about how client funds were misappropriated, how clients were blocked from withdrawing their own money, and how you orchestrated a cover up.”

    Separately, Sens. Elizabeth Warren of Massachusetts and Tina Smith of Minnesota, both Democrats, sent letters to three regulators – the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency – asking them to assess the traditional banking system’s exposure to turmoil in the crypto space, a largely unregulated, parallel financial system.

    “Crypto firms may have closer ties to the banking system than previously understood,” Warren and Smith wrote. “Banks’ relationships with crypto firms raise questions about the safety and soundness of our banking system and highlight potential loopholes that crypto firms may try to exploit to gain further access.” 

    Federal prosecutors are investigating the collapse of FTX, an exchange that marketed itself as a beginner-friendly way to get involved in what was, until recently, a booming if highly volatile market for digital assets. FTX also facilitated high-risk leveraged trading that wasn’t allowed inside the United States. (The firm was based in The Bahamas.)

    FTX was one of the biggest crypto exchanges in the world until last month, when it faced a sudden wave of customer withdrawals that it couldn’t cover. One of the key questions prosecutors are likely to probe is whether FTX misappropriated customer funds when it made loans to Alameda.

    Bankman-Fried has denied accusations of misusing customer deposits. “I didn’t knowingly commingle funds,” he told The New York Times last week. “I was frankly surprised by how big Alameda’s position was.”

    Federal prosecutors are also investigating whether Bankman-Fried played a role in the collapse this spring of two interlinked cryptocurrencies, Terra and Luna, according to the New York Times, which cited two people familiar with the matter.

    The Times said the issue is part of a broadening inquiry into the collapse of FTX, and it’s not clear whether prosecutors have determined any wrongdoing by Bankman-Fried.

    In a statement to the paper, Bankman-Fried said he was “not aware of any market manipulation and certainly never intended to engage in market manipulation.”

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  • Crypto crisis continues. Here’s the latest on the FTX collapse | CNN Business

    Crypto crisis continues. Here’s the latest on the FTX collapse | CNN Business

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    New Delhi
    CNN Business
     — 

    Aftershocks from the massive earthquake in the trillion-dollar crypto industry last week continued to be felt on Monday.

    Prices of digital currencies fell again as the crisis engulfing the market deepened over the weekend. Bitcoin, the world’s biggest crypto has plummeted about 65% so far this year. It was trading at about $16,500 on Monday, according to CoinDesk, and analysts believe that it could fall below $10,000 in the coming days.

    Meanwhile, the world’s second most valuable cryptocurrency ethereum isn’t faring much better. It was trading at $1,231.53 on Monday, having sunk over 20% over the last week, CoinDesk data showed.

    The plunge comes as investors continue to grapple with the stunning implosion of the FTX Group, one of the biggest and most powerful players in the industry.

    Some industry insiders have said the company’s downfall had triggered a “Lehman moment,” referring to the 2008 collapse of the investment bank that sent shockwaves around the world.

    The episode has not just destroyed confidence in the crypto industry, but it will also embolden global regulators to tighten the screws. Some of the biggest names in the business said they will welcome the scrutiny, if it helps restore faith in the industry once again.

    There is a “lot of risk,” said Changpeng Zhao, who runs the crypto exchange Binance. “We have seen in the past week things go crazy in the industry, so we do need some regulations, we do need to do this properly,” he added.

    The Binance boss, known as CZ, was speaking at a conference in Indonesia on Monday. He said last week that comparing the current crypto turmoil to the 2008 global financial crisis is “probably an accurate analogy.”

    Zhao was a key player in events surrounding the downfall of FTX. Binance had reached a tentative rescue deal with FTX earlier last week, but that transaction almost immediately fell apart.

    FTX continued its downward spiral over the weekend, after filing for bankruptcy on Friday. And, another big name from the industry admitting to mishandling funds, spooking investors even more.

    Here is how things have unfolded over the last few days, showing the crisis has only just begun.

    FTX moved its headquarters from Hong Kong to The Bahamas last year, with former CEO Sam Bankman-Fried hailing it as “one of the few places to set up a comprehensive framework for crypto” at the time.

    On Sunday, the authorities in The Bahamas said they were investigating potential criminal misconduct surrounding the company’s implosion.

    “In light of the collapse of FTX globally and the provisional liquidation of FTX Digital Markets Ltd., a team of financial investigators from the Financial Crimes Investigation Branch are working closely with the Bahamas Securities Commission to investigate if any criminal misconduct occurred,” the Royal Bahamas Police Force said in a statement.

    It’s not clear which particular aspect of the swift collapse of FTX authorities are investigating.

    Bankman-Fried, the 30-year-old founder of the exchange, was one of the faces of the crypto industry, amassing a fortune once totaling $25 billion that has since vanished. He had been viewed as the crypto world’s white knight, stepping in previously to rescue companies struggling after the collapse of the TerraUSD stablecoin in May.

    FTX, backed by elite investors like BlackRock and Sequoia Capital, rapidly became one of the biggest crypto exchanges in the world. Its collapse was preceded by the decision to lend billions of dollars’ worth of customer assets to fund risky bets by Alameda, FTX’s crypto hedge fund, The Wall Street Journal reported on Thursday.

    The Bahamas probe came a day after the bankrupt exchange said it was launching an investigation of its own.

    On Saturday, FTX said it was looking into whether crypto assets were stolen and has since moved all its digital assets offline. Crypto risk management firm Elliptic said although the theft was unconfirmed, $473 million in crypto assets were apparently stolen from FTX.

    In a tweet early Saturday, FTX General Counsel Ryne Miller said the company “initiated precautionary steps” and moved all its digital assets to cold storage. The process was “expedited” Friday evening “to mitigate damage upon observing unauthorized transactions,” Miller said in a tweet.

    Miller said late Friday that FTX was “investigating abnormalities” regarding movements in crypto wallets “related to consolidation of FTX balances across exchanges.” The facts are still unclear and the company will share more information as soon as possible, he added.

    As scrutiny of big players in the crypto world increases, another major mishap alarmed investors over the weekend. Singapore-based Crypto.com admitted to accidentally sending more than $400 million in ethereum to the wrong account.

    Its CEO, Kris Marszalek, said on Twitter Sunday the transfer of 320,000 ETH was made three weeks ago to a corporate account at competing exchange Gate.io, instead of to one of its offline, or “cold”, wallets.

    And though the funds were recovered, users are withdrawing from the platform fearing the same outcome as FTX.

    ‘We have since strengthened our process and systems to better manage these internal transfers,” Marszalek tweeted Sunday. The platform’s native token has fallen over 20% in the last 24 hours, according to CoinDesk on Monday.

    At the conference in Bali, Binance boss Zhao signaled that regulating the industry won’t be easy.

    Authorities’ “natural response is to borrow regulations from traditional banking systems… but crypto exchanges operate very, very differently from banks,” he said Monday.

    “It is very very normal for a bank to move user assets for investments and try to make returns,” he explained. If a crypto exchange operates that way it is “almost guaranteed to go down,” he said, adding that the industry collectively had a role to play in protecting consumers.

    “Regulators have a role… but no can can protect a bad player,” he said.

    — Matt Egan, Ramishah Maruf and Allison Morrow contributed to this report.

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  • The sudden decline of one of the largest crypto exchanges could rattle the sports industry | CNN Business

    The sudden decline of one of the largest crypto exchanges could rattle the sports industry | CNN Business

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    CNN Business
     — 

    The near collapse this week of FTX, one of the largest cryptocurrency exchanges, has sent shockwaves throughout the crypto startup and investment community. But the fallout could also spread to the sports industry.

    Like other crypto companies, FTX has invested heavily in sports sponsorships, including partnerships and naming rights in professional basketball, baseball and Formula One racing. Now, the company is in turmoil. On Tuesday, it said it would be acquired by rival Binance after experiencing a sudden liquidity crisis, but the deal was called off Wednesday by Binance after the firm conducted a financial review of FTX.

    The uncertainty around the future of FTX raises new questions over what happens to its many sports deals.

    In 2021, FTX inked a reported $135 million, 19-year deal with the NBA’s Miami Heat to rename the American Airlines Arena as FTX Arena. Major League Baseball struck a five-year deal in 2021 to name FTX as its official cryptocurrency exchange, a partnership that includes putting FTX patches on umpires’ uniforms. FTX is also the official cryptocurrency exchange partner of the Mercedes-AMG Petronas Formula One Team.

    “It is far too premature for us to comment,” the FTX Arena and Miami Heat said in a joint statement provided to CNN Business when asked how the acquisition could impact their deal.

    Even college sports has ties to FTX, with the University of California, Berkeley, signing a $17.5 million, 10-year naming rights partnership in 2021 for the school’s football stadium. “We believe we have found a great partner in FTX,” Cal Director of Athletics Jim Knowlton said at the time. “We are looking forward to building our relationship now and in the years ahead.” Cal Athletics did not immediately respond to CNN’s request for comment.

    FTX also works directly with some of the biggest athletes across sports. Los Angeles Angels superstar Shohei Ohtani became the exchange’s global ambassador in return for a stake in the company; NBA star Steph Curry and his foundation, Eat.Learn.Play., signed a partnership with FTX in 2021; and football legend Tom Brady has an equity stake and has served as an ambassador for FTX.

    Sports partnership experts say the stadium naming rights are the biggest headache. “There’s not a huge level of permanence to a lot of the things that have been done, except for the two buildings,” Peter Laatz, global managing director at sports partnerships consultancy IEG, told CNN Business.

    “It happened during the dot-com era where a bunch of buildings, baseball stadiums mostly, were getting named after all these wonky dot-com companies, and they all went completely belly up,” said Laatz. “Naming rights deals are just so hard to get up and running, to get in the minds of consumers that Staples and American Airlines Arenas are now called something different and to pull the roots up on something like that is just more difficult. It makes the property’s job harder. It’s more expensive.”

    FTX and Binance did not respond to CNN’s request for comment.

    FTX is not the only crypto company involved in the sports world. Cryptocurrency brands spent more than $130 million on NBA sponsorships alone last season, up from less than $2 million the season before. Just five crypto companies, including Crypto.com, Coinbase and FTX, were responsible for 92% of the sector spending, according to IEG.

    In 2021, trading platform Coinbase inked a multiyear agreement with the NBA to serve as the league’s exclusive cryptocurrency partner, reportedly worth $192 million over four years. Crypto.com, another cryptocurrency exchange, purchased the naming rights for the Los Angeles Lakers’ stadium in November 2021, a deal reportedly worth $700 million. It also entered a multiyear deal to become the Philadelphia 76ers’ official jersey patch partner.

    Then the market shifted. Coinbase, Crypto.com and other services announced layoffs as rising inflation, fears of a looming recession and broader market turbulence led to a sharp decline in the value of cryptocurrencies.

    “We’ve always said that this was an arms race for brand awareness and users, and there were 40 crypto exchanges spending money in sponsorship a year ago — and now there’s like none. There’s maybe three or four,” said Laatz.

    Binance, notably, sat out the sports sponsorship frenzy. In a hiring announcement earlier this year, Binance CEO Zhao “CZ” Changpeng said: “It was not easy saying no to Super Bowl ads, stadium naming rights, large sponsor deals a few months ago, but we did.”

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  • Online creators hit with IP and copyright lawsuits | CNN Business

    Online creators hit with IP and copyright lawsuits | CNN Business

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    New York
    Business
     — 

    It’s weird when wrestling superstar Randy Orton, Netflix’s romance “Bridgerton,” TikTok, a tattoo artist, Instagram, NFTs and Andy Warhol’s portrait of Prince all show up in the same law school textbook.

    A series of hot-button lawsuits have linked all those unlikely creators and platforms in litigation that goes as high as the US Supreme Court. The litigation deals with issues of intellectual property, copyright infringement and fair use in a rapidly changing new-media landscape.

    For decades, so-called “copycat” lawsuits boiled down to ‘you stole my song/book/idea.’ Now, as the number of platforms to showcase artistic content have multiplied, these court cases are testing the rights of fans, creators and rivals to reinterpret other people’s intellectual property.

    At issue, particularly in social media or new technology, is exactly how much you have to transform something to profit and get credit for it, literally, to make it your business.

    Three weeks ago, in a first-of-its-kind case, a jury in an Illinois federal court ruled that tattoo artist Catherine Alexander’s copyright was violated when the likeness of her client, World Wrestling Entertainment star Randy Orton, was depicted in a video game. Alexander has tattooed Orton’s arms from his shoulders to his wrists.

    She won, but not much: $3,750, because the court ruled that, though her copyright had been violated, her tattoos didn’t impact game profits. Nonetheless, it set a precedent.

    The ruling calls into question the abilities of people with tattoos “to control the right to make or license realistic depictions of their own likenesses,” said Aaron J. Moss, a Hollywood litigation attorney specializing in copyright matters.

    Blame the rise of remix culture. For most of the twentieth century, mass content was created and distributed by professionals,” said Moss. “Individuals were consumers. Legal issues were pretty straightforward. But, now, most of the time, the content is being repurposed, remixed or repackaged.”

    “It’s all new and it’s all a mess,” said Victor Wiener, a fine-art appraiser who’s consulted for Lloyd’s of London and serves as an expert witness in art-valuation court cases. Over the past several decades, the distinctions between professionals and amateurs, artists and copycats and between production and consumption have blurred. In such gray areas, said Wiener, “it can come down to who the judge, or the tryer of fact, believes.”

    Streaming service Netflix late last month settled a copyright lawsuit against fans of their Regency romance “Bridgerton” who wrote and workshopped an “Unofficial Bridgerton Musical” on TikTok.

    In January 2021, a month after the Netflix show premiered, singer Abigail Barlow teamed up with musician Emily Bear to create their own interpretation of the hit series. In a souped-up version of fan fiction, the two women began to write and to perform songs they had written, often using exact dialogue from the series.

    It was a huge hit on TikTok, in part because the duo invited feedback and participation, making it a crowd-sourced artwork.

    At first Netflix applauded the effort and even okayed the recording of an album of songs. But when the creators took their show on the road and sold tickets, Netflix sued.

    Producer and series creator Shondra Rhimes, in a statement released when the suit was filed in July, said “what started as a fun celebration by [fans] on social media has turned into the blatant taking of intellectual property.”

    Cases like this turn on “fair use,” matters such as how much of another work someone appropriates. Or whether it dents the original creator’s ability to profit. In the case of “Bridgerton,” neither side has commented on the resolution of the suit, but a planned performance of the musical at Royal Albert Hall scheduled for last month was cancelled.

    Uncontrolled misappropriation is particularly common in the relatively new NFT art field.

    “Today, a 15-year-old can copy your work and spread it across the Internet like feral cat pee at no cost and with little effort. The intellectual capital of an artist can be appropriated on a massive, global scale unimaginable by the people who wrote copyright laws,” said John Wolpert, co-founder of the IBM blockchain and of several blockchain projects.

    And the relatively new phenomenon of trading art NFTs with cryptocurrency “has created a perverse new incentive to misappropriate an artist’s work and to claim it as your own and charge people to purchase it,” he added.

    In one of several NFT suits finding their way to the courts, fashion giant Hermes sued L.A. artist Mason Rothschild after he created 100 NFT’s that depicted Hermes Birkin bags wrapped in fake fur.

    Hermes filed a lawsuit in January in the court of the Southern District in New York charging trademark infringement and injury to business reputation, not to mention “rip off,” with Hermes requesting a quick summary judgment.

    But in the past, courts have often bent over backward to give an artist leeway in critique and parody. Rebecca Tushnet, a Harvard Law professor and expert on copyright and trademark law who represents the artist, has argued his “MetaBirkins” art project is essentially protected as it comments on the relationship between consumerism and the value of art.

    Last month, the Central District court of California ruled on a doozy of a copyright lawsuit that arose via Instagram: Carlos Vila v. Deadly Doll.

    In 2020, the photographer had taken an image of model Irina Shayk. She was wearing sweatpants from fashion company Deadly Doll that featured a large illustration of a woman carrying a skull. The photographer subsequently licensed his image of the model for reproduction. Deadly Doll posted Vila’s photo on their Instagram account and he sued. They counter-sued, arguing he was the infringer. The suit, detailed by litigator Moss in his Copyright Lately blog, is moving forward in California.

    Perhaps the most important case has nothing to do with new media – it concerns Andy Warhol’s altered photograph of the late artist Prince that ran in Vanity Fair magazine years ago. But it is expected to set a precedent.

    Right now, the US Supreme Court is hearing this landmark case regarding Warhol’s alleged misappropriation of photographer Lynn Goldsmith’s work in his silkscreens of Prince. The court is set to determine how, and how much, an artist or creator must transform a work to make it their own – guidelines that will surely create as much of a buzz as the intellectual property itself.

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  • India will have a difficult task as G-20 chair, says IMF chief economist

    India will have a difficult task as G-20 chair, says IMF chief economist

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    India, which will hold the G-20 presidency next year, will have a difficult task as the group’s chair to bring countries together on some of the key challenges being faced by the world, Pierre-Olivier Gourinchas, the chief economist of the IMF, said on Wednesday.

    “One of the challenges for the G-20 right now, as we’ve seen, is of course how to deal with geo-economic fragmentation. And geo-economy fragmentation is just reflecting the fact that we’ve seen enormous tensions following the Russian invasion of Ukraine,” Gourinchas told PTI in an interview.

    “To some extent to the G-20, it’s much harder to have these kinds of conversations around the common goods in the current environment because there is all this tension related to geopolitical considerations. And so, India will have a difficult task, but also, I would think one of the important objectives will be to keep the countries at the table, to keep the discussion going, keep progress being made on important issues,” he said in response to a question.

    Describing G-20 as a very important institution, Gourinchas said the group is the one place where there is governance representing the majority of the global economy coming together.

    It is not just a group of rich countries. It is really something that has multiple voices. A lot of progress can be made by G-20, he said.

    “One of the things that we talk about quite often in the context of the G 20 is the common framework. It’s a very important initiative. It’s still finding its footing. We at the fund are somewhat frustrated with sometimes a lack of progress on the common framework,” he said.

    But it’s a really important initiative that could be made at the level of the global community, coming together and finding ways in which sustainability problems could be addressed, the chief economist said, adding that that is something which the IMF is looking at very closely.

    Observing that at a venue like the G-20, multilateralism can really have discussions on common goods and make progress and common goods, Gourinchas said: “So what are the common goods that where progress could be made? Prominent among those include the issue of climate change and debt sustainability.”

    Digitalisation, he said, is very much at the forefront. “The whole issue of how the emergence of digital currencies, crypto assets, how is this going to stabilise, destabilise? How should we be doing? There are enormous externalities at the global level regarding the emergence of these new instruments. So how are we as a global community should we organise this space,” he said.

    “Should we regulate it? How should it be regulated? The cross-border aspect is going to be very important. So that’s obviously a common good,” Gourinchas said. 

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  • Binance-linked blockchain hit by $570 million crypto theft | CNN Business

    Binance-linked blockchain hit by $570 million crypto theft | CNN Business

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    CNN Business
     — 

    Binance, which describes itself as the largest crypto exchange by trading volume, is the latest company to be impacted by a major theft this year.

    A Binance-linked blockchain was involved in a $570 million hack late Thursday, a company spokesperson confirmed to CNN Business on Friday.

    Binance temporarily suspended its blockchain network, BNB Smart Chain, “due to irregular activity,” the company tweeted Thursday. The company said Friday that hackers had stolen two million BNB cryptocurrency tokens – which are issued by Binance – worth about $570 million at the time.

    Binance CEO Changpeng Zhao initially tweeted that an estimated $100 million worth of crypto had been stolen.

    “Your funds are safe,” Zhao tweeted on Thursday night. “We apologize for the inconvenience.”

    The company said $100 million worth of tokens remain “unrecovered” and moved off chain by the hacker. The remaining funds have been frozen on the BNB Chain.

    In order to carry out the theft, the hackers targeted what’s called a cross-chain bridge. Bridges, increasingly the targets of hackers in recent months, are the infrastructure that allow users to exchange crypto assets between different blockchains.

    Bridge services typically hold large reserves of various coins. These coin reserves are attracting the attention of hackers and turning blockchain bridges into prime targets for heists, according to blockchain analysis firm Elliptic.

    Some $1.83 billion has been stolen from bridges as of August, with the majority of that ($1.21 billion) taking place just this year, according to Elliptic. Some of the largest thefts this year include $190 million stolen from cryptocurrency bridge provider Nomad in August, California-based firm Harmony’s $100 million loss in late June, and Axie Infinity’s Ronin bridge $625 million hack in March.

    This latest attack put the BNB blockchain offline for about nine hours. In order “to stop the incident from spreading,” the chain ecosystem contacted each of the chain’s validators, who verify transactions on the blockchain as legitimate, BNB wrote in a company post.

    The chain was back up and running around 2:30 a.m. ET. according to a company tweet.

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  • How Elon Musk could change Twitter | CNN Business

    How Elon Musk could change Twitter | CNN Business

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    New York
    CNN Business
     — 

    Nearly three months after Elon Musk told Twitter he wanted out of his $44 billion agreement to buy the social media company, the Tesla CEO now once again wants to move forward with the deal.

    The reversal, if finalized, not only has the potential to create upheaval for Twitter employees but also for the hundreds of millions of people around the world who use the platform daily.

    In the first weeks after agreeing to buy the company in April, and before his move to bail on the deal, Musk repeatedly stressed that his goal was to bolster “free speech” on the platform and work to “unlock” Twitter’s “extraordinary potential.” He suggested he would rethink Twitter’s approach to content moderation and permanent bans on the platform, with potential impacts on civil discourse and the political landscape. He also talked about his desire to rid the platform of bots, even as he later made the number of bots central to his argument to abandon the deal.

    In private and public statements over the past six months, Musk has tossed out a wide range of other possible changes for the platform, from enabling end-to-end encryption for Twitter’s direct messaging feature to suggesting this week that Twitter become part of an “everything” app called x, possibly in the style of popular Chinese app WeChat.

    There have been more far-fetched suggestions, too. In one text exchange with his brother Kimbal Musk, revealed last week in court documents, the two appeared to discuss the possibility of asking users to pay for each tweet they post with small amounts of the cryptocurrency DogeCoin.

    Perhaps the biggest immediate impact if the deal goes through: Musk has indicated that he would restore former President Donald Trump’s account on the platform, which could be a huge advantage if Trump decides to make another bid for the White House in 2024.

    Now, with a deal that has long been in doubt appearing to be closer than ever to completion, some of those theoretical changes could soon become reality.

    Here’s what users should know:

    For years under former CEO and co-founder Jack Dorsey, Twitter emphasized its work to bolster “healthy conversations.” The company banned many accounts promoting abuse and spam, added labels for false or misleading information and banned the misgendering of transgender people.

    Under Musk’s ownership, Twitter could unwind steps taken to make the platform more palatable for its most vulnerable users, typically women, members of the LGBTQ community and people of color, according to safety experts.

    Musk has said Twitter, under his leadership, would have more lenient content moderation policies. “If in doubt, let the speech exist,” Musk said in one on-stage interview in April. “If it’s a gray area, I would say, let the tweet exist. But obviously in the case where there’s perhaps a lot of controversy, you would not necessarily want to promote that tweet.”

    Musk has also said he wants to make Twitter’s algorithm open source and make it more transparent to users when, for example, a tweet has been emphasized or demoted in their feed. (Leaders at Twitter have previously expressed support for moving in that direction, and the company often makes clear when it is demoting certain tweets or types of content.)

    But the most striking early change could come from who is and is not allowed on a Musk-owned Twitter.

    Musk has said he thinks Twitter should be more “reluctant to delete things” and “very cautious with permanent bans.” That could mean a long list of controversial far right figures and conspiracy theorists, among others, soon find their way back on the platform.

    Musk, for his part, has focused on bringing back one of Twitter’s most prominent former users: Trump.

    “I do think it was not correct to ban Donald Trump, I think that was a mistake,” Musk said in May. “I would reverse the perma-ban. … But my opinion, and Jack Dorsey, I want to be clear, shares this opinion, is that we should not have perma-bans.”

    Dorsey tweeted following Musk’s May remarks that he does “agree” there shouldn’t be permanent bans on Twitter users. “There are exceptions … but generally permanent bans are a failure of ours and don’t work,” he said.

    Trump has said he does not want to rejoin Twitter and will instead remain on his own social media platform, Truth Social.

    But if Trump were to accept a Musk offer to return to Twitter, it could restore a significant following he hasn’t had since being banned from the platform in January 2021, just as the 2024 US Presidential race ramps up. On Truth Social, Trump has only 4 million followers; on Twitter, he reached an audience of more than 88 million followers.

    Another notable change is simply who may be making these sensitive decisions.

    Musk has a mixed reputation in the tech industry. He is undoubtedly one of the most ambitious and successful innovators and entrepreneurs of this era, but he is also someone who has courted controversy, often from his own Twitter profile, where he has more than 100 million followers.

    Over the years, Musk has used Twitter to make misleading claims about the Covid-19 pandemic, to make a baseless accusation that a man who helped rescue children from a cave in Thailand is a sexual predator, to mock people who display their gender pronouns on the platform and to make countless jokes involving the numbers 420 and 69. He has also tweeted a (since deleted) photo comparing Canadian Prime Minister Justin Trudeau to Adolf Hitler and has compared Twitter’s new CEO Parag Agrawal to Joseph Stalin.

    Musk also previously sought to remove a Twitter account dedicated to tracking the movements of his private jet by offering to pay off the college freshman running the account (the account owner declined).

    The same day he sent his letter to Twitter attempting to revive the deal, Musk was widely panned for comments he made on the platform about Russia’s invasion of Ukraine. He suggested making Crimea, a region Russia invaded and annexed from Ukraine in 2014, “formally part of Russia.” Most followers responded “no” to his poll and Ukraine’s Ambassador to Germany Andrij Melnyk replied in a tweet: “F— off is my very diplomatic reply to you.” In a follow-up tweet, an apparently frustrated Musk seemed to blame the results of his poll on a “bot attack.”

    Until now, Twitter has, at least to some extent, been accountable for its policy decisions to advertisers, shareholders and its board. But those guardrails won’t necessarily exist under Musk’s leadership.

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  • Global crypto markets face tougher rules under G20 plan

    Global crypto markets face tougher rules under G20 plan

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    Crypto’s Wild West era may be coming to an end.

    According to the Financial Stability Board (FSB), a global financial standard-setter, most of the cryptocurrency market should be subject to the same tough rulebook that governs traditional finance.

    The FSB, which was born in the wake of the 2008 financial meltdown to stave off further shocks, will propose the plan to rein in crypto to finance ministers and central bankers from the Group of 20 industrialized countries gathering in Washington next week, the plan’s chief architect, Steven Maijoor, told POLITICO.

    “A lot of the activities in crypto assets and crypto assets markets resemble activities in the traditional financial system and therefore we take the approach: Same activity, same risk, same regulation,” Maijoor, who sits on the Dutch central bank’s governing board and oversees banking supervision, said in Prague in early September.

    The move is set to put major crypto trading platforms on red alert, coming as the U.S. Securities and Exchange Commission seeks to impose securities regulation on cryptocurrencies and as the EU prepares its own rules for digital markets.

    More broadly, the FSB’s work on digital assets is likely to act as a cold shower for crypto currencies that seek to expand their services without complying with regulations.

    Regulators fear the lack of investor safeguards could see volatility in cryptocurrency markets spilling over into the traditional finance sector, as banks and money managers venture into the market.

    Some $2 trillion of the market’s value has evaporated since its highs of November last year, triggering corporate collapses and exposing scams that left millions of crypto investors penniless. Risks within the crypto markets are still contained. But that could quickly change and threats could spill over to financial markets from various channels, according to the European Securities and Markets Authority.

    Maijoor will present G20 policymakers with draft recommendations that he’s been developing with a team of global regulators within the FSB since April with the view of securing financial stability as crypto goes mainstream. Countries around the world will need to decide whether new rules are needed for novel arrivals within the crypto market, such as digital wallets. The rest should be captured by new or existing financial rules.

    “This is not only related to securities,” said the 58-year-old, who used to lead the EU’s securities regulator before getting a job at De Nederlandsche Bank. “There are also already some crypto activities that are captured by anti-money laundering laws and regulations and we can observe that also, in that case, there is non-compliant behavior.”

    The example of companies skirting around dirty money safeguards is an easy one for the Dutchman to give. His central bank in late April fined the world’s biggest crypto exchange, Binance, €3 million for offering services to Dutch citizens without having cleared the required Dutch safeguards against dirty money — gaining a competitive advantage against its rivals. Binance objected to the fine in June.

    The Financial Stability Oversight Council, chaired by U.S. Treasury Secretary Janet Yellen, said the crypto industry needs to be brought to heel in several areas | Alex Wong/Getty Images

    Ministers and governors will also get updated recommendations on how to regulate global stablecoins, digital tokens that are tied to national currency or a reserve of financial products to keep their value steady. The stablecoin update is separate from the crypto recommendations and came in response to Facebook’s failed bid to introduce a virtual currency for some 2.9 billion social media users around the world.

    Maijoor’s work will be subject to consultation, so companies and countries will be able to suggest changes to what will become the global blueprint for supervising the market.

    Locking horns

    The recommendations could embolden U.S. banking and markets regulators, which are increasingly taking the position that digital asset trading platforms and brokerages should follow existing regulations.

    The Financial Stability Oversight Council, which is chaired by U.S. Treasury Secretary Janet Yellen and counts SEC Chair Gary Gensler and the heads of other federal agencies among its members, on Monday released a report that identified several areas where the crypto industry needs to be brought to heel. 

    “Crypto cannot exist outside of our public policy frameworks. That’s regardless of what [Bitcoin’s pseudonymous creator] Satoshi Nakamoto might have initially thought, or what market participants might say today,” Gensler said during Monday’s FSOC meeting. 

    Ripple and Coinbase, both major crypto exchanges that have locked horns with Gensler, will be hoping for a different outcome that involves new rules.

    Coinbase has argued that crypto assets are more akin to commodities and that the SEC classifying them as securities is like putting a straitjacket on how the market could develop, especially considering those rules were developed in the 1930s. The Commodity Futures Trading Commission would be a far better fit, according to the exchange.

    “I think it is reasonable to assume that none of the authors who drafted these securities statutes from the 1930s … did so while thinking of a day when a decentralized, cryptographically-based, automated financial instrument would be adopted en masse by millions of people in the United States and around the world,” Coinbase’s chief policy officer, Faryar Shirzad, wrote in a blog in July.

    Sam Sutton contributed reporting from New York.

    This article is part of POLITICO Pro

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  • Sam Bankman-Fried wants his case thrown out of court | CNN Business

    Sam Bankman-Fried wants his case thrown out of court | CNN Business

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    New York
    CNN
     — 

    Lawyers for FTX founder Sam Bankman-Fried on Monday filed motions to dismiss the US government’s fraud charges against him.

    Bankman-Fried’s attorneys said the government failed to properly explain what offenses the former CEO of the bankrupt crypto exchange committed. They urged the judge to toss most of the charges against him, which include fraud and bribery.

    Bankman-Fried has pleaded not guilty to the 13 charges.

    Prosecutors allege that Bankman-Fried stole FTX customer deposits to finance risky bets at his hedge fund, Alameda Research, and to funnel contributions to American politicians.

    FTX had been one of the most respected and recognized crypto platforms before it collapsed into bankruptcy in November.

    The government has two weeks o respond to the motions from Bankman-Fried’s lawyers, and the judge has called the next hearing for June 15, where Bankman-Fried is expected back in court.

    The 31-year-old Bankman-Fried is under house arrest on a $250 million bond. He awaits trial at his parents’ home in Palo Alto, California. Bankman-Fried has acknowledged mishandling his business but has denied engaging in fraud.

    Three of Bankman-Fried’s former business partners — Gary Wang, Caroline Ellison and Nishad Singh — have pleaded guilty to numerous charges and are cooperating with investigators.

    If convicted on all counts, he could face more than 155 years in prison. A trial has been scheduled for October.

    – CNN’s David Goldman contributed to this report

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  • ALDOIN, a Green Crypto-Mining Project Offering Attractive Dividends Launches Crowdsale

    ALDOIN, a Green Crypto-Mining Project Offering Attractive Dividends Launches Crowdsale

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    ALDOIN, an innovative Green-mining solution in partnership with Eqvola and Adviora announces crowdsale.

    Press Release



    updated: Sep 21, 2017

    ALDOIN is the result of a joint venture between London based IT company Eqvola LLPand Glasgow based ad agency, Adviora. The partners in this initiative have unveiled the crowdsale for the green Crypto-mining project.

    ALDOIN is a highly-optimized cryptocurrency, Crypto-mining farm and trading service with low cost and smart allocation systems powered by an innovative equity token, ALDO. The token entitles holders to monthly dividends of up to 4 percent of the project’s profits from its mining operations. The ongoing crowdsale, in its first phase, allows participants to purchase the ALDO tokens and become part of the initiative.

    The increasing requirement for hashing power, rising network difficulties and the use of massive amounts of energy by mining hardware has exploded into the public consciousness. Many believe that Crypto-mining solutions amid the rise and adoption of cryptocurrencies by various government entities and financial institutions are doing more damage to the planet than good. Making matters worse is the current situation with some of the existing Cloud-mining solutions which are fraught with inconsistencies, low payouts, and scam allegations.

    Some people will argue that it is more profitable to mine on their own. However, critical issues such as high electrical power consumption, air conditioning costs, hardware repairs and maintenance, noise and interferences have proven to be very effective deterrents. ALDOIN combines the technical know-how of Eqvola to develop customized turnkey solutions for the financial market and the marketing prowess of Adviora to develop a stable and self-sustaining cloud mining ecosystem with both vertical and horizon expansion across all boards.

    The ALDOIN ecosystem makes use of hundreds of mining farms to provide a high level of uptime for each farm. It will be achieved by using custom setups to maximize automation, reduce human resources and mining interruptions and maintain production at minimal expense to clients.

    Over the past couple of years, ALDOIN has acquired extensive technical skills and knowledge in successfully running crypto mining projects based on different equipment and setups. They have tested and analyzed scores of mining algorithms and cryptocurrencies for optimal output and profit.

    The ALDO Crowdsale

    ALDOIN has split its crowdsale campaign into 10 phases, and the first phase went live on August 28, 2017, and will continue until October 31, 2017. As a part of its crowdsale, the platform will offer 50 million ALDO Equity Tokens, of which 5 million will be available on sale during the first phase.

    On completion of the first phase, ALDOIN will start building an Aldostation, a Crypto-mining center scheduled to be completed in two months and launched within the third month. Those investing in the first phase of the crowdsale will be credited dividends based on the number of tokens they hold. The dividends distribution will be according to the following criteria;

    • up to 500 ALDO — 1%;
    • 501–1000 ALDO — from 1.1% up to 1.5%;
    • 1001–2500 ALDO — from 1.2% up to 2%;
    • 2501–5000 ALDO — from 1.3% up to 3%;
    • from 5001 ALDO — from 1.5% up to 4%.

    The ALDO tokens will be listed on exchange platforms after the fifth or the tenth phase depending on the market conditions. Once listed, token holders will be able to trade ALDO against other cryptocurrencies profitably.

    Soon, ALDOIN will launch various high remunerated products and services including hash power reselling, smart contract creation, trading products, and blockchain legal products. The platform is also open towards investing in other blockchain related projects and startups as well. The future development roadmap and other project specifications are explained in detail in ALDOIN’s whitepaper.

    Learn more about ALDOIN at – https://aldoin.com
    Learn more about Eqvola at – https://eqvola.com
    Know more about Adviora at – https://adviora.com
    Access the ALDOIN whitepaper at – https://aldoin.com/documents/Aldoin_WhitePaper_EN.pdf
    Follow ALDOIN on Twitter at – https://twitter.com/aldoin_official
    Find ALDOIN on Facebook – https://www.facebook.com/aldoin.official
    ALDOIN YouTube channel available at – https://www.youtube.com/channel/UCXn08sP9fxA3VTEGoKDeQjQ
    Find ALDOIN on LinkedIn at – https://www.linkedin.com/company-beta/6427433

    Media Contact
    Contact Name: Maksym Tiahai / Olivier Danvel
    Contact Emailpromo@aldoin.com
    Location: London, UK

    ALDOIN is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. This press release is for informational purposes only. The information does not constitute investment advice or an offer to invest.

    Source: ALDOIN

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  • Groundbreaking Crypto Start-Up, Internet of Coins, Launches Fundraiser on OpenLedger DC

    Groundbreaking Crypto Start-Up, Internet of Coins, Launches Fundraiser on OpenLedger DC

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    Press Release



    updated: Mar 17, 2017

    Internet of Coins (www.coinstorm.net) will launch their fundraiser on the OpenLedger Decentralized Conglomerate (DC) on March 21st 2017, in celebration of the first day of spring. Until the launch, investors can join the early bird offer and receive a 5% discount.

    Essentially a wallet, Internet of Coins is a secure way to store cryptocurrencies and smart contracts, and trade them without centralized exchanges. With an easy-to-use interface to manage multiple coins and assets, users of Internet of Coins need no advanced technological knowledge to work with cryptocurrencies. Furthermore, the platform acts as an interface to smart contract systems, decentralized communications, and distributed notary functions.

    Existing wallets will need no changes or adaptations to have their blockchains and value systems connected to this decentralized network.

    Internet of Coins gives users the option to exchange currencies with anyone in the world, without dependency on a centralized third party. Compatible with every currency available, users can receive, send and swap, making fluid trades of value from and to any blockchain available.

    The official token of the Internet of Coins platform, termed HYBRID, serves two main purposes. First, it provides a coherent store of value across multiple blockchains, diversifying risk. Second, it serves as the vehicle to swap value between the different chains they are registered on. This will allow users to exchange value without the need for a centralized external third party.

    HYBRID tokens will be freely tradable after July 1st, 2017.

    Joachim de Koning, Founder of Internet of Coins, explained, ‘From July 1st 2017, we will release the tokens to fundraiser participants. Tokens will be released on the user’s blockchain of choice. Due to the hybrid nature of the token, it can be used on multiple blockchains.’

    ‘We are inviting people to join us for our Livestream event, http://bit.ly/2mLX9eX, on March 20 at 6pm GMT where we will be presenting our platform and answering questions.’

    The idea of Internet of Coins was conceived during the summer of 2014. It aims to create a decentralized, self-sustaining economy by implementing inter-blockchain connectivity.

    De Koning continued, ‘Our goal is to make every cryptocurrency autonomously part of a large swarm of decentralized economic activity. We want to do this by enabling every cryptocurrency user to create hybrid assets that interconnect value systems and blockchains. The source code to make this possible will be open source, non-commercial and freely available, to enable the impartial establishment of the Internet of Coins.’

    Ronny Boesing, CEO of OpenLedger, says, ‘The Internet of Coins is a great way for interlinking all digital forms of value in one place. Because you can swap digital assets and currencies, peer to peer, you also have the incredible opportunity to earn fees by participating. What we also love about Internet of Coins is the ‘easy to use’ interface which allows users existing wallets to be adapted with no changes or adaptations. In my opinion, this innovation is a need-to-have tool for crypto traders.’

    Media Contact

    Siim Õunap/Aviva Pearson
    siim@openledger.info/aviva@openledger.info
    Phone: +372 556 07 289

    EDITOR’S NOTES:

    The OpenLedger Decentralized Conglomerate (DC) is the world’s first blockchain powered conglomerate, allowing multiple organizations to join forces and directly invest in each other’s successes, reaping the benefits of cross-promotion throughout the entire network.

    LINKS:

    Website: www.internetofcoins.org
    Early Bird registration: https://coinstorm.net/en/terms
    Twitter: @internetofcoins
    Learn more about OpenLedger: www.openledger.info

    OpenLedger is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. This press release is for informational purposes only. The information does not constitute investment advice or an offer to invest.

    Source: OpenLedger

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