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Tag: FTX

  • Colossal Buying Pressure For Bitcoin And Solana As FTX Plans $16B Distribution, Expert

    Colossal Buying Pressure For Bitcoin And Solana As FTX Plans $16B Distribution, Expert

    In a significant development for the cryptocurrency industry, FTX, the exchange that collapsed in November 2022 under the leadership of convicted Sam Bankman-Fried, is preparing to distribute a staggering $16 billion in cash to its customers, which could lead to significant gains for Bitcoin (BTC) and Solana (SOL) prices. 

    Crypto researcher Xremlin has predicted that a considerable portion of this cash will flow back into the crypto market, serving as a catalyst for growth towards the end of the year. 

    FTX $16 Billion Cash Injection 

    In a recent social media post, Xremlin highlighted the significance of the distribution, emphasizing that it involves returning $16 billion in cash to individuals already involved in the crypto space. 

    Xremlin believes that a significant portion of this money will be reinvested in the market, specifically in purchasing various tokens, including Bitcoin and Solana, creating significant buying pressure and price growth for both cryptocurrencies.

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    The source of this massive cash injection can be traced back to FTX’s agreement with US government agencies, where assets acquired with misappropriated customer funds were sold. These assets encompassed investments in cryptocurrencies, tech companies, venture funds, and real estate. 

    Following the sale of shares in AI startup Anthropic, where FTX had previously invested $500 million, the distressed exchange found $6.4 billion in cash. It is important to note that the amount also includes assets controlled by debtors and liquidators.

    However, the distribution has faced dissatisfaction among some clients due to settling customer claims based on lower cryptocurrency prices from November 2022, when FTX filed for bankruptcy. 

    For instance, clients holding 10 Ethereum’s native token ETH in their accounts will receive approximately $12,000 in cash, significantly lower than the asset’s current worth of around $29,000 as ETH trades at $2,900. 

    Despite objections, the court has approved creditor voting on the liquidation plan, and if passed by the necessary number of votes, the plan will be implemented after final court approval.

    Buying Frenzy For Bitcoin, Ethereum, And Solana?

    Key dates to watch for further developments include August 16, 2024, which marks the deadline for FTX customers to vote on the bankruptcy wind-down payments, and October 7, 2024, when Judge John Dorsey will consider approving the FTX bankruptcy plan.

    If the current plan is approved, clients can expect payouts to begin by the end of Q3, potentially providing much-needed liquidity for token purchases. This timing coincides with the US elections, which could contribute to increased market volatility. 

    Consequently, FTX payouts could serve as an additional factor fueling a bullish trend in the crypto market as it finds itself in significant price declines.

    Related Reading

    Bitcoin has fallen over 21% in the past month at one end of the market, from a high of $71,000 to a current trading price of $56,400. Meanwhile, Solana surpasses BTC’s losses with a 22% drop in the same time frame, currently trading at $134.

    The 1-D chart shows that BTC’s price is trending downward. Source: BTCUSD on TradingView.com

    Furthermore, it is expected that the ongoing selling pressure from the US and German governments witnessed over the past month could continue for the rest of the year, and the cash injection from FTX to crypto investors could help mitigate the expected selling pressure.

    The researcher points out that since most affected FTX customers are retail crypto investors, a significant portion of the money is expected to flow back into cryptocurrencies. Bitcoin, Ethereum, and Solana are likely to receive the most liquidity. 

    Featured image from DALL-E, chart from TradingView.com

    Ronaldo Marquez

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  • Sam Bankman-Fried sentenced to 25 years over role in FTX collapse

    Sam Bankman-Fried sentenced to 25 years over role in FTX collapse

    Sam Bankman-Fried sentenced to 25 years over role in FTX collapse – CBS News


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    Sam Bankman-Fried was sentenced to 25 years in prison for his role in the sudden collapse of the FTX crypto exchange. Prosecutors say he defrauded customers out of more than $8 billion, one of the largest financial crimes in U.S. history. Errol Barnett reports.

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  • Sam Bankman-Fried Sentenced To 25 Years In Prison

    Sam Bankman-Fried Sentenced To 25 Years In Prison

    Crypto mogul and former CEO of FTX Sam Bankman-Fried was sentenced to 25 years in prison for defrauding hundreds of thousands of customers, leaving investors and lenders short by more than $11 billion. What do you think?

    “It’s such a shame, by the time he gets out, he’ll have no idea what all the new scams are.”

    Alana Patterson, Slum Developer

    This Week’s Most Viral News: March 29, 2024

    “Sooner or later, crypto was going to attract someone only interested in making a quick buck.”

    Keaton Singh, Boiling Water Attendant

    “There’s no way he can compete with all that alternate prison currency.”

    Melanie Potts, Unemployed

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  • FTX Founder Samuel Bankman-Fried Sentenced to 25 Years

    FTX Founder Samuel Bankman-Fried Sentenced to 25 Years

    Cointelegraph, CC BY 3.0

    By Brett Rowland (The Center Square)

    A judge sentenced FTX founder Samuel Bankman-Fried to 25 years in prison on Thursday, marking the long fall of the onetime cryptocurrency star.

    U.S. District Judge Lewis Kaplan also sentenced Samuel Bankman-Fried, known as SBF, to three years of supervised release, and ordered him to pay $11 billion for orchestrating a massive fraud. 

    Bankman-Fried, who was the founder of the cryptocurrency exchange FTX and the cryptocurrency trading firm Alameda Research, misappropriated billions of dollars of customer funds deposited with FTX. He defrauded investors in FTX of more than $1.7 billion and defrauded lenders to Alameda of more than $1.3 billion, according to prosecutors. 

    Four American Presidents Were In New York, Only Trump Went To The Wake Of A Slain Police Officer

    “There are serious consequences for defrauding customers and investors,” Attorney General Merrick Garland said in a statement. “Anyone who believes they can hide their financial crimes behind wealth and power, or behind a shiny new thing they claim no one else is smart enough to understand, should think twice.”

    Bankman-Fried, 32, of Stanford, California, was previously convicted of two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit commodities fraud, and one count of conspiracy to commit money laundering, after a one-month trial.

    Bankman-Fried once led FTX, a digital asset exchange platform that skyrocketed in popularity before it crashed in 2022. Before the scandal, Bankman-Fried spent time with the rich and powerful. According to OpenSecrets, Bankman-Fried gave roughly $40 million in public donations in the 2022 election cycle, with the vast majority, $36.8 million, going to Democrat-affiliated groups. After the scandal, those who took Bankman-Fried’s money raced to give it back, as The Center Square previously reported.

    Bankman-Fried’s sentence ranks among the longest for fraud in the U.S.

    Bernard Ebbers, co-founder and CEO of WorldCom, got 25 years, but was released after 13 years due to declining health. He died a month after his release.

    Enron CEO Jeffrey Skilling initially got 24 years, but that was later reduced to 14 years. He was released in 2019 after serving 12 years. 

    Bernie Madoff, the financier behind the largest known Ponzi scheme, got 150 years. He died in 2021 after serving nine years. 

    An Enormous Amount Of Money Is Being Lost Due To Baltimore Bridge Collapse

    Bankman-Fried was the founder and chief executive officer of FTX, an international cryptocurrency exchange. From 2019 to 2022, he was the leader and mastermind of a scheme to defraud customers of FTX by misappropriating billions of dollars of those customers’ funds, according to federal prosecutors.

    Bankman-Fried took FTX customer funds for his personal use, to make investments and millions of dollars of political contributions to candidates, and to repay billions of dollars in loans owed by Alameda Research, a cryptocurrency trading fund that Bankman-Fried also founded. Bankman-Fried also defrauded lenders to Alameda and equity investors in FTX by providing them false and misleading financial information that concealed his misuse of customer deposits, prosecutors said. 

    Syndicated with permission from The Center Square.

    The Center Square

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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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  • Sam Bankman-Fried sentenced to 25 years in prison for his role in collapse of FTX crypto exchange

    Sam Bankman-Fried sentenced to 25 years in prison for his role in collapse of FTX crypto exchange

    Former cryptocurrency billionaire Sam Bankman-Fried was sentenced Thursday to 25 years behind bars for his role in perpetrating one of the largest financial crimes in U.S. history, AP News reported.

    Bankman-Fried, 32, was convicted in November of seven counts of fraud, conspiracy and money laundering, along with other charges of conspiracy to commit commodities and securities fraud. 

    Bankman-Fried had faced up to 110 years under federal sentencing guidelines, but prosecutors had called for Judge Lewis Kaplan to sentence Bankman-Fried to between 40 and 50 years in prison for what they described as a “historic fraud.” Bankman-Fried’s attorneys had argued for a sentence of no more than six and a half years, saying he was unlikely to reoffend. 

    At his sentencing hearing Thursday, attorneys for Bankman-Fried argued that their client never intended to defraud customers, and that Judge Kaplan should therefore show leniency. “Sam was not a ruthless financial serial killer who set out every morning to hurt people,” defense lawyer Marc Mukasey said, Reuters reported. Mukasey described his client as an “awkward math nerd” who tried to return customers’ money to them after FTX collapsed, according to the report. 

    FILE PHOTO: FILE PHOTO: Former FTX Chief Executive Bankman-Fried at the Manhattan federal court in New York City
    Former FTX CEO Sam Bankman-Fried walks outside the Manhattan federal court in New York City, March 30, 2023.

    Amanda Perobelli / REUTERS


    Although Bankman-Fried is expected to appeal his conviction, former federal prosecutor Andrey Spektor said there’s little chance that the verdict would be reversed. “There is nothing anyone can do about that,” Spektor said.

    At the hearing, Bankman-Fried offered an apology to his former FTX colleagues, Reuters reported. “They put a lot of themselves into it, and I threw that all away. It haunts me everyday,” Bankman-Fried told the judge, adding, “I’m sorry about that. I’m sorry about what happened at every stage. Things I should have done and said, things I shouldn’t have.”

    Bankman-Fried’s conviction last fall followed the startling 2022 collapse of FTX, the cryptocurrency trading platform he had co-founded and led as CEO, amid an $8 billion shortfall in funds. At trial, he was accused of using depositor money to prop up his struggling hedge fund, as well as of using the funds buy luxury properties in the Caribbean and to make donations to a range of causes.

    FTX was once the second-largest crypto exchange in the world, allowing users to buy and sell dozens of virtual currencies, while Bankman-Fried’s wealth was estimated at more than $30 billion. Flush with billions of dollars of investors’ cash, Bankman-Fried took out a Super Bowl advertisement to promote FTX and bought the naming rights to an arena used by the NBA’s Miami Heat.

    But the collapse of cryptocurrency prices in 2022 crippled FTX and ultimately led to its crash. FTX’s hedge fund affiliate, Alameda Research, had made billions of dollars in crypto investments that plunged in value. Prosecutors said Bankman-Fried tried to shore up Alameda’s balance sheet with FTX customer funds.

    Three former FTX associates testified against Bankman-Fried after pleading guilty to related crimes. They included Caroline Ellison, Bankman-Fried’s former romantic partner, who alleged that he had pressured her to commit fraud. 

    —The Associated Press contributed to this report.

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  • DOJ submits 52 victim statements ahead of Sam Bankman-Fried sentencing

    DOJ submits 52 victim statements ahead of Sam Bankman-Fried sentencing

    The U.S. DOJ has submitted 52 victims’ statements to the Attorney’s Office, as Sam Bankman-Fried is scheduled for sentencing on Thursday. 

    The statements revealed the emotional and financial distress of numerous victims. A former member of the Unsecured Creditors Committee (UCC) discloses a personal claim of $4 million.

    FTX’s collapse took all of the victim’s life savings and forced his resignation due to his inability to sustain a no-income period. The former UCC member expresses a loss beyond finances, describing that the incident had forced him into critical depression.

    The victim details how FTX’s collapse disrupted his home life, negatively impacting his marital bond and lifestyle. He argues for valuing assets based on their worth today, not just their value at the time of FTX’s bankruptcy filing.

    A Spanish investor describes the betrayal felt after investing savings with dreams of entrepreneurship. FTX’s high-profile advertising drew in this victim, but ultimately, the collapse shattered his plans for a future business. 

    An Italian victim went through her ‘worst nightmare,’ as she previously held funds in Celsius. She moved her funds to FTX, considering the exchange a safer choice. Following the collapse, she went into severe mental trauma, which ultimately impacted her marriage life. She calls for compensation based on current market values and criticizes the legal proceedings for insufficiently addressing victims’ needs.

    The victim statements reveal the depth of emotional and mental impact caused by Sam Bankman-Fried, with each statement reflecting on how the incident drove them into depression and affected their family lives. 

    However, there might be some relief for the victims, as the exchange recently sold its shares in AI firm Anthropic for $884 million. For now, the victims expect Judge Lewis Kaplan to consider their stories when sentencing Sam Bankman-Fried and the Federal Court to reconsider their approach to reimbursement. 


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    Mohammad Shahidullah

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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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  • Celsius CEO selects Bankman-Fried lawyers for upcoming trial

    Celsius CEO selects Bankman-Fried lawyers for upcoming trial

    Former Celsius CEO Alex Mashinsky has chosen to be represented by the same legal team as FTX’s Sam Bankman-Fried against allegations of wire fraud and artificially inflating the company’s token value.

    Bloomberg insights suggest that Mashinsky expressed his decision to a federal judge, acknowledging his willingness to overlook any possible conflicts arising from attorneys Marc Mukasey and Torrey Young representing him and Bankman-Fried. 

    Both lawyers represented Bankman-Fried during FTX’s historic trial that ended in the former FTX CEO being found guilty. Bankman-Fried is awaiting his sentencing next month, where he potentially faces up to 120 years in prison.

    Mashinsky’s decision comes in the wake of the 2022 downturn of Celsius, marking one of the year’s notable cryptocurrency failures, occurring shortly before FTX’s own financial troubles. The charges against the former Celsius CEO allege that he disseminated false information regarding the company’s stability before its bankruptcy declaration.

    The prosecution prompted U.S. District Judge John Koeltl to ensure Mashinsky was fully aware of his entitlement to an unconflicted legal representation, highlighting concerns over Mashinsky attributing part of Celsius’s downfall to the dealings of Alameda Research.

    Despite potential complications from discussions Bankman-Fried had regarding a possible acquisition of Celsius and replacing Mashinsky before its insolvency, the prosecution deemed these conflicts manageable, provided they were acknowledged and accepted by Mashinsky.


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    Mohammad Shahidullah

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  • FTT Crashes 30% As FTX Relaunch Hopes Fade: Is the Dream Over?

    FTT Crashes 30% As FTX Relaunch Hopes Fade: Is the Dream Over?


    The dream of a revived FTX exchange evaporates, triggering a massive sell-off of its native token, FTT. According to Kaiko, on February 5, FTT, the now utility-free currency of the defunct exchange, plummeted over 30% last week, erasing much of its recent gains fueled by speculation of an FTX comeback. 

    FTT price collapse | Source: Kaiko via X

    FTX Won’t Resume Operations

    The worrying drop follows reports that the bankrupt exchange, once led by Sam Bankman-Fried, is unlikely to resume operations. Notably, the news comes despite a glimmer of hope for FTX customers. 

    At a recent court hearing, the exchange’s representatives claimed it expects to repay its users fully. However, repayments would be based on the worth of their assets during FTX’s bankruptcy. 

    It should be noted that by the time FTX went bankrupt in late 2022, crypto assets were at the last phase of a bear market, with prices plunging to multi-month lows. Bitcoin, the world’s largest crypto asset, was trading below $20,000. After FTX collapsed, prices crashed below $16,000 before bouncing back strongly. 

    Following a court hearing in late January, FTX lawyer Andrew Dietderich, in a now-deleted YouTube video, said the exchange wouldn’t be looking to relaunch due to the absence of buyers. For this reason, the exchange is looking at allowing creditors to obtain approvals from investors seeking repayments. 

    Claimants impacted, given the new conditions and trajectory the exchange plans to take, have to provide sufficient proof that they held assets in FTX before it collapsed. 

    This new detail raises concerns for thousands, if not hundreds of thousands, of claimants, who argue that the actual value of their assets lies at the pre-crash level. On average, Bitcoin and top coins were roughly double digits higher than the November 2022 lows.

    FTT Is Free Falling, Reverses November Gains

    For the better part of 2023, FTT prices recovered steadily. To demonstrate, since November 2023, FTT prices have risen by over 300%. The encouraging surge was fueled solely by the possibility of FTX 2.0 launching and implementing a new management model. 

    With that hope fading, FTT appears to be facing a harsh reality check. Questions about its utility are being asked since FTT served as a critical cog in the FTX ecosystem when the exchange operated normally. 

    FTT price trending downward on the daily chart | Source: FTTUSDT on Binance, TradingView
    FTT price trending downward on the daily chart | Source: FTTUSDT on Binance, TradingView

    When writing on February 5, FTT changes hands at around $1.7. Looking at price charts, bears are in control, completely reversing the gains of November 2023. As it is, $0.95 remains to be a key support line. 

    Feature image from iStock, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.





    Dalmas Ngetich

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  • Vitalik Buterin reflects on his meeting with Putin, depicts the FTX collapse

    Vitalik Buterin reflects on his meeting with Putin, depicts the FTX collapse

    In a recent introspective blog post, Ethereum co-founder Vitalik Buterin candidly addressed the complexities of his journey in the crypto world and its intersection with global politics. 

    Buterin’s revelations, particularly concerning his ‘unintended’ legitimization of Russian President Vladimir Putin and his observations on the cryptocurrency industry’s volatility, provide a rare glimpse into the mind of one of the crypto world’s most influential figures.

    Buterin recounted an experience in 2017 when he met with Vladimir Putin. Initially, he didn’t perceive this meeting as an endorsement of Putin’s regime. However, upon reflection, he now views it as an unwitting legitimization of a controversial political figure. This acknowledgment represents a significant shift in Buterin’s perception of his actions, highlighting the ethical complexities tech leaders face when interacting with global politics.

    “Now, five years later, I finally realized that (i) I had been complicit in legitimizing a genocidal dictator, and (ii) within the crypto space too, I no longer had the luxury of sitting back and letting mystical “other people” run the show.”

    – Vitalik Buterin

    The Ethereum founder also delved into how his perception changed during the downfall of Sam Bankman-Fried and FTX. This incident was a stark reminder of the impermanent and often unpredictable nature of leadership within the crypto community. Buterin observed that many individuals he once viewed as guiding lights in the industry were no longer present or had lost their standing. This realization highlights the ephemeral nature of influence and the rapid evolution within the crypto sector.

    Buterin’s reflection on the FTX collapse underscores the importance of ethical stewardship and vigilant leadership in crypto. It serves as a cautionary tale about the dangers of rapid growth and the need for transparency and accountability in the industry. The event, coupled with his personal experiences, points to a maturing perspective where Buterin acknowledges his actions’ significant responsibilities and potential impacts in the broader tech and political landscapes.

    Buterin shared this list of ‘current and former crypto main characters’ in this blog

    These reflections were a broader part of Buterin’s seven-chapter long blog, where he revisited his experience, learnings, successes, and failures in the crypto industry. With these reflections, Buterin re-iterated that he no longer wants to be the face of crypto, rather he thinks “people a full decade younger” are more deserving of that role today. 


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    Mohammad Shahidullah

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  • Former FTX customers seek crypto repayment amid current market rally

    Former FTX customers seek crypto repayment amid current market rally

    A group of previous FTX customers urges a U.S. court to modify the proposed repayment approach in their bankruptcy case. 

    The former customers contend that the current proposal unjustly excludes them from the significant increase in Bitcoin and other cryptocurrencies over the past year. Bitcoin is up by nearly 170% in a year, reaching $49,000 today for the first time in almost two years after yesterday’s historic ETF approval by the SEC.

    Over 80 individuals with their crypto assets locked in FTX have submitted objections to the plan. This plan suggests fixing the value of their assets to Nov. 11, 2022, the date FTX declared bankruptcy, with repayments in U.S. dollars rather than the original cryptocurrencies.

    After Sam Bankman-Fried’s conviction for perpetrating extensive fraud, leading to FTX’s downfall, a team of bankruptcy specialists, headed by John J. Ray III, has been actively working to maximize the recovery of cash and crypto assets. This team has received court approval to liquidate the crypto holdings on the platform, aiming to accumulate a multi-billion dollar fund to reimburse customers.

    The cryptocurrency’s value on FTX determines the claim size for each customer at the time of its Chapter 11 filing. For instance, Bitcoin owners are entitled to a repayment of $16,871 per coin based on that date’s value, despite Bitcoin’s current rally. 

    The FTX bankruptcy team has argued in court documents that calculating the exact value of each customer’s digital portfolio is impractical due to the sheer volume of claims. In bankruptcy court terminology, this process would require individual liquidation of all customer claims by the various FTX entities.


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    Mohammad Shahidullah

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  • The token that lived: how Solana project rose from the ashes

    The token that lived: how Solana project rose from the ashes

    Solana (SOL) showed the best performance among the top 10 digital assets by capitalization. What caused this rapid growth following a significant decline?

    In 2023, Solana showcased exceptional success, in stark contrast to Ethereum (ETH). While SOL surged over 1000%, ETH saw only a 90% increase.

    To better understand Solana’s ecosystem scale and recovery pace, let’s examine crucial blockchain metrics from the time of the FTX crash on Nov. 11, 2022.

    FTX bankruptcy

    When the cryptocurrency exchange filed for bankruptcy on Nov. 11 last year, Solana’s metrics had already significantly declined from their peak values.

    For instance, SOL’s price dropped from $62 to $17, and the daily trading volume decreased from $6.7 billion (108 million SOL) to $2.2 billion (130 million SOL).

    Source: CoinMarketCap

    The exit of a major investor and the risk of coin sales triggered Solana’s fall, leading crypto community members to predict its imminent demise.

    Solana’s co-founder and CEO, Anatoly Yakovenko, acknowledged that the significant decline in SOL resulting from the FTX collapse was a “bitter pill to swallow.” Still, these unpleasant moments paled compared to the damage caused to ecosystem projects.

    About 20% of Solana-based projects received investment from the crypto exchange FTX or its subsidiary Alameda Research, and only 5% of startups in the ecosystem held funds on this trading platform. Yakovenko expressed sympathy for the project creators who worked to raise capital and trusted FTX as the custodian of funds.

    Project rise

    Despite the negative forecasts, Solana survived and began its recovery. Experts attributed the project’s “survivability” to the team’s use of stress testing to fix bugs.

    Solana’s active growth occurred during the publication of the court decision in the FTX case. The founder of the crypto exchange, Sam Bankman-Fried, was found guilty of all charges.

    Now freed from a powerful partner’s pressure, Solana’s fate seems clearer, enhancing its investment appeal. Crypto industry representatives have started discussing Solana’s potential to lead the next bull market, evident in the large volume of open long positions, showing investors’ confidence in its positive trajectory.

    Development of Solana and its impact on the ecosystem

    Despite pessimistic forecasts and a general decline in network activity following FTX’s bankruptcy, the Solana developers remained proactive. The blockchain has undergone several significant technical updates and innovations throughout the past year. Since the summer of 2023, Solana has introduced new defi services, including lending platforms, LSD protocols, and decentralized exchanges (DEX). The developers aim to create a new generation of platforms with “healthy” tokenomics and high-quality UI/UX.

    The validators’ migration to client version 1.16 at the end of September 2023 optimized memory usage, expanded support for zero-knowledge proofs (ZKP), and integrated confidential transfers with the new token standard. The update also increased the stability of the network and reduced the hardware requirements for validators. Version 1.17 is expected to add even more ZKP integration capabilities.

    Another major improvement was the introduction of State Compression in April 2023. The solution makes storing data outside the main network cheaper by using on-chain hashes to prove its authenticity.

    Meme coins powered by Solana

    The end of the year witnessed notable excitement surrounding Solana-based memecoins, with one of the standout tokens being Bonk. Bonk, a meme coin operating on the Solana blockchain and depicting a Shiba Inu dog, resembles the largest meme cryptocurrencies such as Dogecoin (DOGE) and Shiba Inu (SHIB).

    Introduced early in January of the same year, Bonk initially sparked short-term excitement, followed by a systematic price decrease until the end of October, after which it began to experience rapid growth. The surge in the coin’s price might have been triggered by the increase in the Solana blockchain token’s value, generating interest in assets within this network, including BONK.

    The escalating demand for the rising token value resulted in a tenfold surge in Saga smartphone sales by Solana developers. Individuals owning the device are eligible for a complimentary distribution of BONK tokens, whose quantity, at the current rate, covers the smartphone’s cost. The company restricted sales to one device per person.

    What lies ahead for Solana

    VanEck analysts published a report presenting several forecasts for the price of SOL by 2030. The pessimistic scenario projects a coin price of $9.81, while the most optimistic scenario reaches $3211.28.

    Experts suggest Solana could potentially be the first blockchain capable of accommodating applications with over 100 million users. However, VanEck believes Solana’s monetization will only reach about 20% of Ethereum’s due to “fundamental differences in the philosophies of the communities of the two projects.” This may result in less than half of Ethereum’s market share.

    Experts also anticipate decentralized exchanges’ market share will reach an all-time high as high-performance networks like Solana enhance user trading experiences. They predict the Solana blockchain will rank among the top three in market capitalization, TVL, and active users.

    While the initial forecast regarding the token price may appear challenging to achieve given current token values, the second forecast seems reasonably realistic. In January, SOL secured its place in the top five cryptocurrencies by market capitalization, surpassing Ripple (XRP) and BNB.

    The token that lived: how Solana project rose from the ashes - 2
    Source: CoinMarketCap


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    Anna Kharton

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  • Top cryptocurrencies to watch this week: BSV, BCH, FTT

    Top cryptocurrencies to watch this week: BSV, BCH, FTT

    This week featured mixed sentiments amid a consolidation phase, with the global cryptocurrency market cap dropping from $1.66 trillion to $1.65 trillion. Some assets bucked the trend, while others succumbed to bearish pressure.

    Top cryptocurrencies — Bitcoin SV (BSV)  Bitcoin Cash (BCH) and FTX Token (FTT) — stood out.

    BSV crosses $100

    Bitcoin SV was one of the best performers this week, but its early price movements were not entirely encouraging to market watchers. The token began the week with a 4% increase, but shed off these gains when it dropped 2.05%.

    BSV price – Dec. 31 | Source: Trading View

    This drop immediately preceded a massive recovery that saw BSV appreciate by 73.32% from Dec. 27 to Dec. 28. The asset rallied by another 4.49%, eventually reclaiming the $100 pivotal psychological price level for the first time since April 2022.

    Bitcoin SV has now slumped below the $100 level, but it has retained its upward momentum, currently up 101% this month. The cryptocurrency has also increased 90.8% this week, with a current trading value of $96 at the reporting time. 

    Amid the price spike, BSV’s RSI has surged to 84.40, indicating bullish momentum and a slip into overbought territories. This metric has triggered mixed reactions, with trade volume down 52% over the last 24 hours to $335 million.

    BCH hits 5-month high

    Bitcoin Cash appears to be leveraging the market-wide uptrend at a slower pace. While other crypto assets clinched their pre-FTX and pre-Terra highs, BCH failed to even eclipse the figures it attained in July. 

    Top cryptocurrencies to watch this week: BSV, BCH, FTT - 2
    BCH price – Dec. 31 | Source: Trading View

    However, the crypto asset has picked up the pace, recently surging to a high of $287 on Dec. 30 before witnessing resistance. The last time BCH saw the $288 price level was in July. The token aims to breach the $300 psychological threshold to sustain its bullish run.

    From a technical standpoint, BCH has slipped into favorable territories, with its MACD (Moving Average Convergence Divergence) indicator indicating bullish momentum. The crypto asset’s upsurge has triggered a rise in its daily MACD, leading to a value of 7.8 with the control line reading 3.34.

    A MACD indicator with the MACD line significantly above the signal line suggests bullish momentum. In this case, the MACD line at 7.8 compared to a control line at 3.34 indicates a strong bullish trend, potentially signaling a buying opportunity for Bitcoin Cash.

    BCH currently trades for $266, up 18% this week. Amid the price rally, the crypto asset’s Commodity Channel Index (CCI) has surged to 171, indicating the price may be overbought. This extremely high reading suggests that the price is well above its historical average and may be due for a correction.

    FTT holds above $3

    The FTX Token entered the week with a bearish outlook, but has since engineered a comeback, aiming to transcend this level. Despite the comeback, the token is still down over the past week, with an 8% slump since Christmas day.

    Top cryptocurrencies to watch this week: BSV, BCH, FTT - 3
    FTT price – Dec. 31 | Source: CoinGecko

    FTT had collapsed 23.5% from $3.719 on Dec. 25 to 2.84 on Dec. 29. The asset embarked on its recovery following the drop to $2.84, rallying to a high of $3.645 but facing resistance. Despite the resistance, FTT continues to hold above the $3 price, firmly defending the support.

    Should FTT eventually break the $3.6 level, its next crucial resistance currently sits at $3.995 at the Fib. 0.382 level. This would bring the token back to the November highs. FTT’s CCI paints an interesting picture, with a current value of -67.14. This indicates that the token is largely oversold.

    Despite the bearish outlook, FTT currently trades above the 200-day EMA ($2.738), but slightly below the 50-day A ($3.539). This pattern suggests mixed sentiments, with the asset boasting a bullish long-term prospect but a bearish short-term outlook.


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    Wahid Pessarlay

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  • Feds say they won’t bring second trial against Sam Bankman-Fried

    Feds say they won’t bring second trial against Sam Bankman-Fried

    A second trial of FTX founder Sam Bankman-Fried on charges not in the cryptocurrency fraud case presented to a jury that convicted him in November is not necessary, prosecutors told a judge Friday.

    Prosecutors told U.S. District Judge Lewis A. Kaplan in a letter that evidence at a second trial would duplicate evidence already shown to a jury. They also said it would ignore the “strong public interest in a prompt resolution” of the case, particularly because victims would not benefit from forfeiture or restitution orders if sentencing is delayed.

    They said the judge can consider the evidence that would be used at a second trial when he sentences Bankman-Fried on March 28 for defrauding customers and investors of at least $10 billion.

    Bankman-Fried, 31, who has been incarcerated since several weeks before his trial, was convicted in early November of seven counts, including wire fraud, wire fraud conspiracy and three conspiracy charges. He could face decades in prison.

    Last spring, prosecutors withdrew some charges they had brought against Bankman-Fried because the charges had not been approved as part of his extradition from the Bahamas in December 2022. They said the charges could be brought at a second trial to occur sometime in 2024.

    However, prosecutors at the time said that they would still present evidence to the jury at the 2023 trial about the substance of the charges.

    The charges that were temporarily dropped included conspiracy to make unlawful campaign contributions, conspiracy to bribe foreign officials and two other conspiracy counts. He also was charged with securities fraud and commodities fraud.

    In their letter to Kaplan, prosecutors noted that they introduced evidence about all of the dropped charges during Bankman-Fried’s monthlong trial.

    They said authorities in the Bahamas still have not responded to their request to bring the additional charges at a second trial.

    A conviction on the additional charges would not result in a potential for a longer prison sentence for Bankman-Fried, prosecutors said.

    “Proceeding with sentencing in March 2024 without the delay that would be caused by a second trial would advance the public’s interest in a timely and just resolution of the case,” prosecutors wrote. “The interest in avoiding delay weighs particularly heavily here, where the judgment will likely include orders of forfeiture and restitution for the victims of the defendant’s crimes.”

    When reached by CBS News, attorneys for Bankman-Fried declined to comment, as did the U.S. Attorney’s Office for the Southern District of New York. 

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  • 7 crypto court cases coming in 2024

    7 crypto court cases coming in 2024

    Several crypto industry stakeholders have pending lawsuits in the U.S. and other jurisdictions following a busy year for government prosecutors and digital asset attorneys.

    2023 featured crypto’s largest court case to date coupled with a multi-billion dollar settlement between the industry’s largest exchange and several U.S. regulatory bodies. However, 2024 promises another series of court battles and crypto defendants arguing against illegal doings.

    The U.S. Securities and Exchange Commission (SEC) sued multiple crypto businesses in what some proponents termed a “regulation by enforcement” campaign against blockchain assets.

    According to SEC Chair Gary Gensler, the majority of these crypto assets qualify as securities and fall under the purview of existing financial policies. He views the ecosystem as rife with fraud and non-compliance.

    The Commodity Futures Trading Commission (CFTC) kept apace with Gensler’s SEC, fielding 47 lawsuits involving digital asset operators accused of fraud and running Ponzi schemes. Indeed, the CFTC recorded its largest-ever win after fining Cornelius Johannes Steynberg of Stellenbosch $3.4 billion.

    New cases are likely to emerge amid unresolved litigation and rolling enforcement action. These are the seven crypto cases to watch at press time.

    Binance

    Crypto’s largest exchange, Binance, reached a record-breaking $4.3 billion settlement with the CFTC, the U.S. Department of Justice, and the Treasury Department. Former CEO Changpeng Zhao also stepped down and pleaded guilty to at least one felony charge.

    However, the SEC is still suing Binance and was notably absent from the multi-agency resolution announced in November. The SEC said Binance broke securities laws by operating an unregistered exchange and offering illegal securities like the BUSD stablecoin, a joint venture with Paxos. 

    Richard Teng, the new Binance CEO, would lead the company through an SEC lawsuit and adjust to the monitorship agreed upon with authorities.

    Celsius

    The bankrupt crypto lender is accused of defrauding thousands of investors under the leadership of ex-CEO Alex Mashinsky. Mashinsky denied wrongdoing after his arrest in July and indictment on seven criminal charges. 

    His trial will begin in September while Celsius faces suits from the CFTC and the SEC. A third lawsuit filed by the Federal Trade Commission was settled.

    Coinbase 

    Like Binance, the SEC sued Coinbase in June. Coinbase allegedly failed to register its exchange and illegally provided staking-as-a-service to U.S. investors. Coinbase will square off with the securities watchdog in a Southern District Court of New York after denying the allegations. 

    The crypto exchange also saw its rule-making petition denied, although CEO Brian Armstrong said Coinbase would not give up. 

    FTX

    While FTX founder Sam Bankman-Fried was convicted on all seven charges, including fraud at his exchange and crypto trading firm Alameda Research, a second trial to address severed counts may be held. 

    Federal prosecutors could sue Bankman-Fried for unlawful political donations and bribing foreign government officials. A New York court is scheduled to sentence the fallen crypto mogul in March. This is the same time a second FTX trial may be pursued. Bankman-Fried’s bid for a delayed sentencing was already refused.

    Kraken

    Kraken pulled out of New York, but the SEC still has a case against the Jesse Powell-founded crypto exchange. The SEC accused Kraken of commingling customer funds and operating an unregistered securities exchange. Kraken promised to respond.

    David Ripley, Kraken CEO, said the company does not list securities, and the SEC does not have a regulatory structure to register compliant crypto firms.

    Ripple

    Ripple partial victory in a multi-year legal tussle with the SEC over XRP sales was considered a turning point by many in crypto. The SEC said Ripple’s XRP sales to institutional and retail investors broke securities laws. 

    Judge Analisa Torres ruled that XRP sales on exchanges were not unregistered securities, while institutional offerings were. Either side may appeal outcomes as negotiations are expected to decide possible penalties for Ripple based on sales to sophisticated investors.

    Tornado Cash

    The U.S. Treasury sanctioned Tornado Cash in August 2022 for allegedly enabling money laundering and other criminal activity. Co-founders of the Ethereum-based mixing service also face legal action. 

    Tornado Cash developers Roman Storm and Roman Semenov stand accused of sanctions evasion and aiding money laundering. Both defendants deny the charges, and Storm was arraigned in Manhattan court. 

    Another developer, Alexey Pertsev, spent nearly nine months in jail before his release in the Netherlands pending a trial in March.


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    Naga Avan-Nomayo

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  • BlackRock revises BTC ETF filing, El Salvador’s crypto citizenship trending, and more: Hodler’s Digest, Dec. 10-16

    BlackRock revises BTC ETF filing, El Salvador’s crypto citizenship trending, and more: Hodler’s Digest, Dec. 10-16

    Top Stories This Week

    BlackRock revises spot Bitcoin ETF to enable easier access for banks

    BlackRock has revised its spot Bitcoin exchange-traded fund (ETF) application to make it easier for Wall Street banks to participate by creating new shares in the fund with cash rather than just crypto. The new in-kind redemption “prepay” model will allow banking giants such as JPMorgan or Goldman Sachs to act as authorized participants for the fund, letting them circumvent restrictions that prevent them from holding Bitcoin or crypto directly on their balance sheets.

    El Salvador expects to sell out Bitcoin ‘Freedom Visa’ by end of year

    El Salvador’s National Bitcoin Office says its $1 million Freedom Visa program has already received hundreds of inquiries since its launch on Dec. 7 and expects it to sell out before the end of 2023. Launched by the local government in partnership with stablecoin issuer Tether, the Freedom Visa is a citizenship-by-donation program that grants a residency visa and pathway to citizenship for 1,000 people willing to make a $1 million Bitcoin or Tether donation to the country. The program is limited to 1,000 slots per calendar year.

    Sam Bankman-Fried’s lawyer says FTX fraud trial was “almost impossible” to win: Report

    The lawyer responsible for Sam “SBF” Bankman-Fried’s criminal trial defense has admitted that the case was “almost impossible” to win from the outset. During an interview, Stanford Law School professor David Mills said he recommended the legal defense of SBF admit to the allegations of witnesses and state prosecution and convince the jury that Bankman-Fried intended to save the company. Mills also disclosed that he had agreed to lend his expertise to Bankman-Fried’s defense at the behest of the FTX CEO’s parents, and described Bankman-Fried “as the worst person I’ve ever seen do a cross-examination.”

    Yearn.finance pleads arb traders to return funds after $1.4M multisig mishap

    Yearn.finance is hoping arbitrage traders will return $1.4 million in funds after a multisignature scripting error resulted in a large amount of the protocol’s treasury being drained. The error occurred while Yearn was converting its yVault LP-yCurve — earned from performance fees on vault harvests — into stablecoins on the decentralized exchange CoW Swap. Yearn suffered significant slippage when it received 779,958 DAI yVault tokens from the trade, resulting in a 63% drop in the liquidity pool value.

    SEC pushes deadline for decision on Invesco Galaxy spot Ethereum ETF to 2024

    The United States Securities and Exchange Commission has delayed its decision on whether to approve or reject a spot Ether ETF proposed by Invesco and Galaxy Digital. The companies filed the spot ETH ETF application in September. The proposed spot crypto investment vehicle is one of many being considered by the commission, which, to date, has never approved an ETF with direct exposure to Ether, Bitcoin or other cryptocurrencies.

    Winners and Losers

    At the end of the week, Bitcoin (BTC) is at $42,222, Ether (ETH) at $2,250 and XRP at $0.62. The total market cap is at $1.6 trillion, according to CoinMarketCap.

    Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Bonk (BONK) at 131.38%, WOO Network (WOO) at 78.34% and Helium (HNT) at 77.66%. 

    The top three altcoin losers of the week are Terra Classic (LUNC) at -15.84%, Sei (SEI) at -14.48% and Pepe (PEPE) at -12.10%.

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

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    Most Memorable Quotations

    “I’m a big fan of this stablecoin called Tether…I hold their treasuries. So I keep their treasuries, and they have a lot of treasuries.”

    Howard Lutnick, CEO of Cantor Fitzgerald

    “This [blockchain] can be leveraged to ensure proper recycling and handling of waste materials by tracking them from origin to destination.”

    Dominic Williams, founder and chief scientist at Dfinity

    “Digital currencies are the natural evolution of the world’s payment system, and Europe […] is paving the way for this inevitable shift.”

    Michael Novogratz, CEO of Galaxy Digital

    “I thought it was almost impossible to win a case when three or four founders are all saying you did it.”

    David Mills, criminal trial attorney of Sam Bankman-Fried

    “Our bipartisan bill is the toughest proposal on the table cracking down on crypto’s illicit use and giving regulators more tools in their toolbox.”

    Elizabeth Warren, U.S. senator

    “We have to understand that the Central Bank is a scam. What Bitcoin represents is the return of money to its original creation, the private sector.”

    Javier Milei, president of Argentina

    Prediction of the week

    ‘No excuse’ not to long crypto: Arthur Hayes repeats $1M BTC price bet

    Bitcoin and altcoins are a no-brainer bet in the current macro climate, Arthur Hayes says. In a post on X (formerly Twitter) on Dec. 14, the former CEO of exchange BitMEX said that investors have “no excuse” to short crypto.

    Going long on crypto is the key to success as markets bet on the United States Federal Reserve lowering interest rates next year, Hayes argues. “At this point, there is no excuse not to be long crypto,” part of his post stated.

    “How many more times must they tell you that the fiat in your pocket is a filthy piece of trash,” he wrote. Hayes further reiterated a longstanding $1 million BTC price prediction as a result of macro tides eroding the value of national currencies.

    FUD of the Week

    Ledger patches vulnerability after multiple DApps using connector library were compromised

    The front end of multiple decentralized applications using Ledger’s connector were compromised on Dec. 14. Ledger announced that it had fixed the problem three hours after the initial reports about the attack. Protocols affected include Zapper, SushiSwap, Phantom, Balancer and Revoke.cash, stealing at least $484,000 in digital assets. The attacker utilized a phishing exploit to gain access to the computer of a former Ledger employee. The hack sparked criticism about Ledger’s security approach.

    Bitcoin inscriptions added to US National Vulnerability Database

    The National Vulnerability Database flagged Bitcoin’s inscriptions as a cybersecurity risk on Dec. 9, calling attention to the security flaw that enabled the development of the Ordinals Protocol in 2022. According to the database records, a datacarrier limit can be bypassed by masking data as code in some Bitcoin Core and Bitcoin Knots versions. As one of its potential impacts, the vulnerability could result in large amounts of non-transactional data spamming the blockchain, potentially increasing network size and adversely affecting performance and fees.

    SafeMoon falls 31% in five hours after filing for Chapter 7 bankruptcy

    The token of decentralized finance protocol SafeMoon has fallen 31% in five hours after the company behind it filed for bankruptcy. SafeMoon officially applied for Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” on Dec. 14. The latest blow comes only a month after the U.S. Securities and Exchange Commission charged SafeMoon and its executives with violating securities laws in what the regulator described as “a massive fraudulent scheme.” Several former SafeMoon supporters expressed frustration on Reddit regarding the bankruptcy, alleging they were rug-pulled by the SafeMoon developers.

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    Sweden: The Death of Money?

    Top Magazine Pieces of the Week

    Terrorism & Israel-Gaza war weaponized to destroy crypto

    Draconian anti-crypto legislation could soon be passed to solve a terrorism funding “crisis” that many argue is vastly overstated.

    Korean crypto firm raises $140M, China’s $1.4T AI sector, Huobi battle: Asia Express

    Line Next raises $140M, China’s AI market surpasses $1.4T, Sinohope stagnates due to stuck FTX deposit, and more!

    J1mmy.eth once minted 420 Bored Apes… and had NFTs worth $150M: NFT Creator

    NFT collector J1mmy.eth trades like Warren Buffett, his collection peaked at $150 million, and he once minted 420 Bored Apes with Pranksy.

    Editorial Staff

    Cointelegraph Magazine writers and reporters contributed to this article.

    Cointelegraph by Editorial Staff

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  • FTX And IRS Lock Horns Over $24 Billion Tax Bill, FTT's Key Support Wavers

    FTX And IRS Lock Horns Over $24 Billion Tax Bill, FTT's Key Support Wavers

    In a striking turn of events, the Internal Revenue Service (IRS) in the United States has presented a staggering tax bill of $24 billion against the bankrupt cryptocurrency exchange FTX. 

    FTX Challenges IRS’s $24 Billion Tax Bill

    According to court filings and FTX’s response to the IRS’s claims, several key arguments challenge the basis of the tax bill. Firstly, FTX highlights that its operations spanned three years, never distributing dividends or earnings. 

    Secondly, the exchange’s defense attorneys claim that the company incurred substantial losses rather than generating income that could support the IRS’s “exorbitant” tax claim. 

    Thirdly, the lawyers argue that FTX is currently in liquidation and is not engaged in any ongoing business activities apart from those required for the liquidation process. 

    Finally, the company emphasizes that the recovery sought by the IRS would ultimately come at the expense of FTX’s victims, as the funds would be redirected away from their rightful recipients. 

    As the court hearing approaches, FTX asserts that proceeding with a court-supervised estimation process would demonstrate the company’s significant losses during its operational period, rendering the IRS’s claim “baseless.” 

    FTX emphasizes that any forced payment would harm the victims of the FTX fraud, many of whom are already grappling with “profound losses.”

    FTX’s administrators have managed to recover approximately $7 billion in assets, including $3.4 billion in cryptocurrencies. These figures underscore the complex financial landscape surrounding the IRS’s claim against FTX.

    As the courtroom showdown ensues, the case outcome will undoubtedly have significant implications for the future of crypto taxation and the recovery prospects of FTX’s creditors. 

    FTT’s Bullish Trend Holds Strong

    As the cryptocurrency market experiences a significant correction following a bullish surge led by Bitcoin (BTC), FTX’s native token, FTT, has seen a decline of over 5% in the past 24 hours, adding to the company’s legal concerns.

    After a three-month accumulation phase that kept FTT trading in a range between $0.9 and $1.2 from September to the beginning of November, the token witnessed an impressive surge in the last month, reaching its highest price of the year at $6.042, a level not seen since November 2022.

    FTT’s loss of support at $5.1 on the daily chart. Source: FTTUSDT on TradingView.com

    However, the token has retraced to its current price mark of $4.8, with the next support level at $4.45 in case of further downward movement.

    On a positive note, FTT is trading above key moving averages, including the 200-day and 50-day MA, which provide support and indicate the potential for further upward price action.

    Furthermore, since the beginning of November, FTT has consistently recorded higher highs and higher lows, forming an uptrend pattern. This trend has been observed three times, with the token experiencing an uptrend, followed by a pullback for a support test, and then a continuation to reach new highs.

    Assuming this trend continues and the legal developments do not have a significant impact on the price of the token, FTT may be poised for a significant rise in the coming months, given the remarkable uptrend pattern seen on the daily chart.

    Featured image from Shutterstock, chart from TradingView.com 

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    Ronaldo Marquez

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  • Binance’s CZ must stay in US, Elon Musk seeks $1B for AI, and other news: Hodler’s Digest, Dec. 3-9

    Binance’s CZ must stay in US, Elon Musk seeks $1B for AI, and other news: Hodler’s Digest, Dec. 3-9

    Top Stories This Week

    Binance founder CZ must stay in US until sentencing, judge orders

    Binance founder Changpeng “CZ” Zhao has been ordered to stay in the United States until his sentencing in February, with a federal judge determining there’s too much of a flight risk if the former crypto exchange CEO is allowed to return to the United Arab Emirates. On Dec. 7, Seattle District Court Judge Richard Jones ordered Zhao to stay in the U.S. until his Feb. 23, 2024 sentencing date. He faces up to 18 months in prison after pleading guilty to money laundering on Nov. 21 and has agreed not to appeal any potential sentence up to that length.

    House committee passes bill to ‘preserve US leadership’ in blockchain

    A United States Congress committee has unanimously passed a pro-blockchain bill, which would task the U.S. commerce secretary with promoting blockchain deployment and thus potentially increase the country’s use of blockchain technology. The act covers an array of actions the commerce secretary must take if passed, including making best practices, policies and recommendations for the public and private sector when using blockchain tech. The bill will now go to the House for a vote. If passed, it must also pass in the Senate before returning for final congressional and presidential approval.

    SEC pushes deadline to decide on Grayscale spot Ether ETF

    The United States Securities and Exchange Commission has delayed its decision on whether to approve or reject a spot Ether exchange-traded fund (ETF) offering from asset manager Grayscale. In a notice, the SEC said it would designate a longer period for considering a proposed rule change that would allow NYSE Arca to list and trade shares of the Grayscale Ethereum Trust. Grayscale first filed with the SEC to convert shares of its Grayscale Ethereum Trust into a spot Ether ETF in October, adding its name to the list of companies awaiting a decision from the regulator.

    Elon Musk’s xAI files with SEC for private sale of $1B in unregistered securities

    Elon Musk’s X-linked artificial intelligence modeler, xAI, has an agreement for the private sale of $865.3 million in unregistered equity securities, according to a filing with the United States Securities and Exchange Commission made on Dec. 5. The company is seeking to raise $1 billion. XAI’s product, a chatbot called Grok, has recently rolled out to X’s Premium+ subscribers. Musk announced the launch of xAI in July and claimed its goal was to “understand the universe.” 

    Bitcoin new high set for late 2024, Binance to lose top spot — VanEck

    Bitcoin will hit a new all-time high in late 2024 because of a long-feared United States recession and regulatory shifts after the next U.S. presidential election, asset manager VanEck predicts. The firm is confident that the first spot Bitcoin ETFs will be approved in the first quarter of 2024. However, it also made a gloomy prediction for the general U.S. economy. VanEck is among several firms, including BlackRock and Fidelity, that are vying for an approved spot Bitcoin ETF. VanEck also believes that the BTC halving, due in April or May, “will see minimal market disruption,” but there will be a post-halving price rise.

    Winners and Losers

    At the end of the week, Bitcoin (BTC) is at $44,402, Ether (ETH) at $2,364 and XRP at $0.66. The total market cap is at $1.65 trillion, according to CoinMarketCap.

    Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Bonk (BONK) at 203.10%, ORDI (ORDI) at 134.34% and BitTorrent (BTT) at 114.32%. 

    The top three altcoin losers of the week are Maker (MKR) at -6.48%, UNUS SED LEO (LEO)  at -6.22% and Kaspa (KAS) at 4.98%.

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

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    Most Memorable Quotations

    “The expected approval of the ETF will be positive news for the crypto market, likely leading to significant growth.”

    Adam Berker, senior legal counsel at Mercuryo

    “The only true use case for it [crypto] is criminals, drug traffickers, money laundering, tax avoidance.”

    Jamie Dimon, CEO of JPMorgan Chase

    “Jamie Dimon is in no position to criticize Bitcoin with this sort of track record.”

    Gabor Gurbacs, strategy adviser at VanEck

    “So, for us, I think Bitcoin is our central bank. With that in mind, I think of Ethereum as our investment bank.”

    Robby Yung, CEO of Animoca Brands

    “The ETF is certainly a key driver in sentiment.”

    Jon de Wet, investment chief of Zerocap

    “It takes a community and the whole industry to figure out how to better educate people. That’s the hard part. It’s not a technology issue; it’s an operational problem.”

    Eowyn Chen, CEO of Trust Wallet

    Prediction of the week

    ‘Early bull market’ — Bitcoin price preps 1st ever weekly golden cross

    Bitcoin is lining up an “early bull market” as a unique chart feature plays out for the first time in history.

    In a post on X (formerly Twitter) on Dec. 7, entrepreneur Alistair Milne noted that should current performance continue, Bitcoin will witness a crossover of two weekly moving averages (MAs), which have never delivered such a bull signal before. 

    The 50-week and 200-week MAs are key trendlines for Bitcoin traders and analysts alike. The latter is the ultimate bear market support level, and it has so far never decreased in value.

    BTC price strength is on the way to taking the 50-week MA trendline above the 200-week counterpart. Known as a “golden cross,” on lower timeframes, this is considered a classic bullish signal, and for Milne, the impetus is that considerable upside could be in store should the phenomenon play out. 

    “The 50-week moving average will now soon cross back above the 200-week MA making a ‘golden cross’ for the 1st time. QED: Early bull market,” he wrote.

    FUD of the Week

    Crypto is for criminals? JPMorgan has been fined $39B and has its own token

    JPMorgan Chase CEO Jamie Dimon is being criticized by the crypto community after claiming Bitcoin and cryptocurrency’s “only true use case” is to facilitate crime. However, according to Good Jobs First’s violation tracker, JPMorgan is the second-largest penalized bank, having paid $39.3 billion in fines across 272 violations since 2000. About $38 billion of these fines came under Dimon’s watch, who has been CEO since 2005.

    British regulator adds Justin Sun-linked Poloniex to warning list after $100M hack

    The United Kingdom’s Financial Conduct Authority (FCA) has added crypto exchange Poloniex to its warning list of non-authorized companies. The Seychelles-based exchange is one of the three companies owned by or affiliated with entrepreneur Justin Sun that have suffered four hacks in the last two months. The warning to Poloniex was published on the FCA’s website on Dec. 6. It doesn’t offer a reason but says that “firms and individuals cannot promote financial services in the UK without the necessary authorization or approval.”

    US senators target crypto in bill enforcing sanctions on terrorist groups

    A bipartisan group of lawmakers in the United States Senate introduced legislation aimed at countering cryptocurrency’s role in financing terrorism, explicitly citing the Oct. 7 attack by Hamas on Israel. The bill would expand U.S. sanctions to include parties funding terrorist organizations with cryptocurrency or fiat. According to Senator Mitt Romney, the legislation would allow the U.S. Treasury Department to go after “emerging threats involving digital assets.”

    Read also


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    Features

    Cleaning up crypto: How much enforcement is too much?

    Top Magazine Pieces of the Week

    Lawmakers’ fear and doubt drives proposed crypto regulations in US

    If the Digital Asset Anti-Money Laundering Act were to become law, many cryptocurrency providers would have to learn how to comply with the same regulations as traditional financial institutions.

    Expect ‘records broken’ by Bitcoin ETF: Brett Harrison (ex-FTX US), X Hall of Flame

    Brett Harrison taught a promising young Sam Bankman-Fried programming for traders at Jane Street, but wasn’t so impressed with the man SBF became.

    Web3 Gamer: Games need bots? Illuvium CEO admits ‘it’s tough,’ 42X upside

    Games overrun with bots just show bot owners care, claims Pixels founder. Plus we review Galaxy Fight Club, chat to Illuvium’s CEO and more.

    Editorial Staff

    Cointelegraph Magazine writers and reporters contributed to this article.

    Cointelegraph by Editorial Staff

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  • U.S. crypto industry lobbying efforts hit record high in 2023

    U.S. crypto industry lobbying efforts hit record high in 2023

    OpenSecrets researchers have found that the cryptocurrency industry is on track to set a new record for federal lobbying spending.

    The record spending comes after a year in which firms struggled to rebuild their reputations and push for friendlire legislation, according to Reuters.

    In total, cryptocurrency firms spent $18.96 million over the three quarters of 2023. However, during the same period in 2022, $16.1 million was spent. In total, firms spent nearly $22 million on lobbying in 2022, including the failed crypto exchange FTX.

    Coinbase (COIN.O), the largest US cryptocurrency exchange, again topped the list with $2.16 million spent, followed by Foris DAX, which operates Crypto.com, Blockchain Association and Binance Holdings.

    Experts point out that cryptocurrency companies are partly trying to improve their reputation after a string of scandals last year, including the collapse of FTX. Crypto firms are also grappling with growing regulatory scrutiny, especially from the U.S. Securities and Exchange Commission, which says the industry is violating its rules.

    According to OpenSecrets, Binance and Binance.US spent more than $1 million lobbying politicians. In total, Binance Holdings invested $850,000 in 2023, and Binance.US spent $340,000, both up significantly from the previous year.

    These lobbying efforts in 2022 focused on two specific bills: the Digital Consumer Protection Act and the Lummis-Gillibrand Responsible Financial Innovation Act, the report says.


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    Anna Kharton

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