Daily Crypto News by CoinMinutes

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Many people expect this 21 million USD ETH short order to be liquidated

The market is on the rise, but not everyone is cheerful. The most disheartened are the traders who took short positions, like Sifu, who placed a $21 million USD short order on ETH that will be liquidated if the ETH price reaches $1,973.7 USD.

On October 24, 2023, the cryptocurrency market turned green as the price of Bitcoin surged to $34,700 USD, the highest since the LUNA-UST crash.

So, Bitcoin is experiencing a dreamy "Uptober" with an increase of over 17% in October. BTC started the month at around $27,000 USD.

The market is covered in green, with many altcoins experiencing significant increases, bringing about a rare positive sentiment not seen in recent months. However, not everyone is pleased.

The most disheartened are likely the "short traders"—those who have taken downward positions. In the current FOMO environment, traders must have strong psychological resilience to withstand short positions.

On-chain reports from observers state that the former CFO of the Frog Nation group, 0xSifu (sifu.eth), is holding a short ETH position on the Synthetix DEX.

The short position is valued at over $21 million USD, with the average short ETH price at $1,643 USD. Currently, with ETH trading around $1,817 USD, the position is at a loss of over $2 million USD.

This order will be completely liquidated if ETH rises to $1,973.7 USD. On October 24, Sifu continuously added collateral to the short order to push the liquidation price higher.

Previously, there were many instances of large positions facing liquidation risks that the community closely monitored, such as the $200 million USD BNB loan order from the BNB Bridge hacker or the collateral order of hundreds of millions of USD in CRV from the Curve founder.

These are leveraged trades on on-chain exchanges, trackable, and could have significant cascading effects if liquidated. Therefore, the community is closely monitoring the status of these positions.

Returning to Sifu, according to Synthetix data, this individual has consistently added more ETH to increase collateral. For example, the most recent addition was $550,000 USD. However, it is clear that Sifu remains steadfast in their prediction of a decrease in ETH price, so they are unhesitant to increase the short position.


Meanwhile, the community is humorously expressing their hope for a significant increase in ETH price to trigger the liquidation of Sifu's order. Since this character is disliked by many due to their "unfavorable" past, few are currently standing in their favor.

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[cmnews]

Bitcoin jumped to 34,700 USD, the highest level since the LUNA - UST collapse

The world's largest cryptocurrency, Bitcoin, has returned to a price level not seen since the beginning of May 2022.

In the early hours of October 24, 2023, Bitcoin (BTC) experienced a sudden surge of nearly 10%, going from $31,600 to $34,741 within just one hour.

This is the highest price that the leading cryptocurrency has recorded since the start of May 2022, which coincides with the time of the LUNA - UST market crash.

Thus, Bitcoin is having a dreamy "Uptober" with a rise of over 17% in October. BTC started this month at around $27,000.

The cause of this surge may stem from the market's optimistic psychology regarding the recent wave of Bitcoin spot ETFs. Despite the continuous postponements by the U.S. Securities and Exchange Commission (SEC), with the support of Wall Street giants and SEC's successive legal failures, many analysts and investors believe that the approval of the Bitcoin spot ETF is only a matter of time.

On the morning of October 24, the ticker symbol of BlackRock's Bitcoin spot ETF was listed on the website of the leading U.S. securities clearinghouse, DTCC, leading to speculation that the SEC's approval of BlackRock's proposal is now just a matter of time.

According to the latest data, the search volume for the keyword "Bitcoin ETF spot" on Google has also reached its peak, indicating significant public interest.

Apart from Bitcoin, other major altcoins have only just started to rise and have not gained momentum as strongly as BTC.

The BTC dominance rate in this morning's surge also reached 54.26%, the highest level since April 2021.

In the last 4 hours, the amount of liquidated derivative orders in the cryptocurrency market reached over $195 million, with 83.26% being short orders. Short Bitcoin orders accounted for the majority with $125 million liquidated.

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The UK's Financial Conduct Authority (FCA) reveals 221 breaches of new crypto marketing rules since October, citing issues like inadequate risk warnings and misleading claims. Both dubious high-yield schemes and legitimate businesses received warnings.

The FCA emphasizes the need for authorized firms overseeing crypto promotions to take regulatory responsibilities seriously, threatening action for non-compliance. Collaborating with various entities, the FCA aims to remove illicit promotions and restricts certain businesses, including Rebuildingsociety.

New rules require FCA-authorized firms for crypto ads, with strict warnings and prohibitions on practices like referral bonuses.

Experts foresee increased consumer protection contributing to widespread cryptocurrency adoption.

Read more in detail: FCA Reports 221 Violations Of New UK Crypto Promotion Rules By Crypto Firms

 

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Former FTX CEO Defended Himself in the Trial

FTX's ex-CEO, Sam Bankman-Fried, faced trial amid fraud allegations that led to the crypto exchange's collapse.

Key moments include Bankman-Fried's Signal app activity, allegations of evidence concealment, and defense attempts to dismiss charges.

Witnesses, including an FBI agent and bankruptcy expert, presented contrasting views. Bankman-Fried defended Signal use but denied instructing evidence concealment.

Intense questioning focused on FTX and Alameda Research's operations. Tensions peaked as prosecutors probed fund withdrawals and borrowing from FTX users.

The trial's outcome, set to continue on October 27, holds implications for crypto and financial legal landscapes.

Read more in detail: Day 13 Of Sam Bankman-Fried Trial: Former FTX CEO Defended Himself

 

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After the first day of testifying without a jury, former FTX CEO Sam Bankman-Fried presented his defense. He acknowledged mistakes in FTX's risk management and lack of employee supervision but denied deception or misappropriation.

The origins of Alameda and FTX were discussed, detailing the shift from Berkeley to Hong Kong. Sam revealed an attempted sale to Binance and the creation of the "allow negative" feature by Gary Wang and Nishad Singh.

FTX's growth, relocation to the Bahamas, and aggressive investments were highlighted. Sam admitted to intentionally boosting FTX's revenue to $1 billion and discussed the liquidity crisis post-LUNA - USDT collapse.

The defense concluded with Sam's denial of remembering instructing the preparation of misleading balance sheets. The prosecution's cross-examination by the US Department of Justice is set for Monday (October 30).

Read more in detail: Day 14 Of Sam Bankman-Fried Trial: Former FTX CEO Claimed Did Not Know What His Subordinates Did

 

[cmnews]

Uniswap DAO Polled about Investing 3 Million UNI in Ekubo Exchange

The Uniswap DAO has conducted a community poll regarding investing 12 million USD worth of UNI tokens to acquire a 20% stake in Ekubo.

Uniswap DAO is seeking opinions on investing 3 million UNI (12 million USD) from its treasury to acquire a 20% stake in the Ekubo project, a DEX platform built on the Starknet platform.

The vote took place on the Snapshot platform. So far, a total of 3,500 votes have been cast, including 21 million UNI (63%) in favor and 12 million UNI against. Additionally, 5 holders contributed to 97% of the supporting votes for this proposal.

If approved, the 3 million tokens will be used to fund Ekubo's operations and contribute to Uniswap. According to Salem, their focus will be on providing public goods for the Starknet ecosystem, including standard token contracts, governance, and promoting the use of the Cairo language. The investment aims to expand Starknet and enhance competition with other layer-2 solutions.

Simultaneously, Ekubo will create a governance token within a month of the proposal's approval. 20% of this token's supply will be allocated to the Uniswap DAO treasury. The remaining portion will be under Ekubo's control and the token will be deployed on Starknet. The proposal also requires Uniswap to update its license, granting Ekubo unlimited access to Uniswap v4.

Salem adds that he was formerly the chief engineer and the fifth employee at Uniswap before joining Ekubo. Ekubo is a decentralized exchange on the StarkNet platform, managing a TVL of 2.5 million USD, according to DeFiLlama. However, the proposal has received mixed comments.

Doo Wan Nam, co-founder of StableLab, notes: "If the plan is approved, I think Uniswap needs to seriously reconsider the role and responsibility of governance."

Market maker Wintermute openly opposes the proposal, stating that pricing the token at 60 million USD is unreasonable.

Another market-making company, Keyrock, does not support the proposal, citing its rushed and insufficiently considered nature. They advocate for a more cautious approach to UNI investment, preferably over 2-3 weeks.

On the other hand, Uniswap recently sparked controversy over imposing a "interface fee" of 0.15%. According to the announcement, the platform will charge users for some token swap transactions, except for swaps between stablecoins.

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[cmnews]

Day 15 Of Sam Bankman-Fried Trial: “I’m Not Sure, I Don’t Remember” Became The Catchphrase of Former FTX CEO

On the 14th day of the trial, the defense lawyer continued to ask questions to allow Sam Bankman-Fried to defend himself.

June – September 2022 phase

The ex-FTX CEO aimed to speed up transactions by enabling non-programmers, potentially boosting annual revenue by $1-2 billion. FTX had risk management tools in place to protect against asset liquidation. After the LUNA-UST crash, Sam discussed hedge trades with Caroline Ellison of Alameda. Dissatisfied with the reported value, Sam requested it to be doubled, and Caroline agreed.

In September, Sam's Dubai trip claimed success, turning it into FTX's headquarters, gaining market share from Binance. Controversy surrounds the purpose of his Middle East visit, with claims of seeking investors and meeting Saudi Crown Prince Mohammed bin Salman. Sam, known for frequent business trips, spends up to 100 days annually traveling, mainly to Washington D.C.

November 2022 – the time of FTX bankruptcy

Before FTX's bankruptcy, a CoinDesk article on Alameda's balance sheet triggered a crisis.

Binance's threat to sell all FTT led to a November 6 crash in FTX token's price.

Despite efforts to reassure the situation, over $4 billion was withdrawn by November 7. FTX delayed withdrawals, citing up to a 1-hour wait for Bitcoin. Sam reassured on Twitter, but as the crypto market declined, FTX's issues worsened.

Sam initially announced FTX's sale to Binance, but the deal was reversed, causing panic.

Seeking a lifeline from Apollo Management, Sam worked tirelessly, declaring bankruptcy on November 11, transferring remaining assets to the Bahamian government amid media scrutiny.

Sam Bankman-Fried still holds dominance over Alameda despite no longer being the CEO

The prosecutor confirmed Sam Bankman-Fried's 90% ownership of Alameda, even after stepping down as CEO in 2022. Evidence suggests he remains involved in Alameda's activities, regularly advising current CEOs Ellison and Trabucco, especially in transactions like Japanese government bond investments.

The prosecutor questioned Sam about media efforts post-FTX bankruptcy, presenting evidence of contradictory statements regarding his involvement in Alameda's operations.

The contrast in statements before the media and behind the scenes at FTX

The prosecutor challenged Sam Bankman-Fried's October 2022 social media statements, emphasizing FTX's security while he knew about an $8 billion asset deficit. During questioning, Sam responded with uncertainty over 150 times. The prosecutor questioned him about conflicting statements on crypto regulation submitted to Congress, revealing that his U.S. engagement was a "smokescreen" to improve FTX's image. Sam admitted to contradictions without clarification.

Evidence also showed Sam calling his followers and the crypto community "fools," which he claimed applied to only a small portion. He acknowledged making political contributions to spur legal action against Binance but stated it had both advantages and disadvantages.

The privileges of Alameda on FTX

The U.S. prosecutors focused on FTX user fund withdrawals. Sam Bankman-Fried claimed no restrictions but clarified that users collateralizing assets for margin trading can't deposit $10, borrow billions, and withdraw, as suggested. Users must maintain collateral, part of FTX’s policy and liquidation mechanism.

Sam asserted on social media and Congress that FTX’s liquidation is superior, requiring collateral in crypto or cash, not real estate or securities. When questioned, he stated regular users can't maintain a negative balance for months, and when positions approach collateral value, they're liquidated.

Prosecutors targeted Alameda's privileges on FTX, challenging claims of non-liquidation, the 'allow negative' feature, borrowing, and collateralizing positions.

Under pressure, Sam Bankman-Fried contradicts media claims, admitting Alameda's unique privileges on FTX. Despite asserting no special treatment, emails and interviews reveal otherwise. Pressed, Sam can't cite another user with Alameda-like benefits, including fiat deposits and a $65 billion credit limit. Reluctantly, he acknowledges only Alameda has the "allow negative" feature, responding with uncertainty.

The prosecutor pushes further, questioning if Alameda can withdraw borrowed funds without liquidation risk. Sam, conceding, nods in agreement.

Sam Bankman-Fried’s lifestyle

To challenge Sam Bankman-Fried's casual appearance claims, the prosecutor referenced past interviews where he linked his unkempt style to a commitment to the "community" and "effective altruism." Sam, facing the evidence, claimed not to recall the context.

Prosecutors went further, accusing him of leading a lavish lifestyle, spending millions on private jet travel, and even chartering a plane for FTX employees' Amazon packages.

Sam Bankman-Fried’s statements continue to “damage” the former FTX CEO

The prosecutor highlights Sam Bankman-Fried's courtroom statement expressing regret for not managing risk at FTX more carefully. However, evidence contradicts this, showing him asserting that FTX's model complies with the highest risk standards, even under oath before Congress.

In a late 2021 hearing, Sam made claims about FTX's risk management and liquidation mechanisms, all refuted by the prosecutor. He admits to instructing code adjustments to prevent Alameda's account liquidation but claims ignorance of the details despite being the CEO.

Amid the 2022 crypto market crisis, Sam criticized organizations on Bloomberg podcasts for ineffective risk management, despite FTX's own challenges.

Back to the story of Alameda borrowing money from FTX

The prosecutor presses Sam Bankman-Fried on Alameda's use of assets not deposited on FTX as collateral for loans in May 2022, which he eventually admits to. Sam claims awareness of Alameda's trading account during his FTX tenure but denies accessing its details. Evidence post-FTX bankruptcy reveals the account's $65 billion borrowing history from FTX.

Sam acknowledges Alameda's privilege to borrow large amounts compared to other market makers. He can't recall if Alameda signed a loan agreement but admits they could have withdrawn borrowed money externally. The prosecutor emphasizes these privileges were undisclosed to the public.

Evidence from Sam's December 2022 media interviews reveals Alameda's right to exceed collateral borrowing limits without adherence.

In 2021, to conceal losses from order liquidation exploits, Sam directed FTX to record positions in Alameda's account, causing an $800 million loss for the fund. This information was hidden from FTX's financial reports as they were closing a $900 million investment round.

FTX and Alameda’s investments

Under the prosecutor's questioning, Sam Bankman-Fried confirmed that Alameda Research spent several billion USD on investments in 2021-2022, and he personally made decisions in some transactions. Notable investments include FTX's $2 billion acquisition and a $1 billion investment in Genesis Digital Assets. At the time, Alameda hadn't implemented precautionary measures for market downturns.

Sam also spent $23 million on Storybook Brawl, a digital game, and made secret investments in The Block media company. The prosecutor questioned him about investments in Dave, SkyBridge Capital, Modulo Capital ($460 million), K5 Global ($700 million), and Robinhood (over $600 million). In the Robinhood deal, Sam executed it through an intermediary company and later transferred ownership to Alameda Research. When accused of having a one-person board for Alameda, Sam claimed it wasn't intentional.

After FTX's bankruptcy, Sam Bankman-Fried made legal efforts to control Robinhood shares before their seizure by U.S. authorities. Prosecutors accused him of using FTX customer funds to buy Robinhood stocks, intending to misappropriate assets for himself post-bankruptcy.

Sam admitted Alameda's over-weighted investments posed a risk in the fund's portfolio but didn't mention risk mitigation measures. After the May 2022 market crash, he instructed Alameda to hedge positions, including "Sam coins," knowing Alameda borrowed money with them as collateral.

In June 2022, lending institutions demanded billions in credits from Alameda, creating tension. Sam claimed awareness in mid-June, but Alameda continued paying creditors by borrowing from FTX users, which Sam denied knowledge of.

Evidence from a December 2022 interview revealed Sam discussing borrowing money from FTX to repay debts. When questioned about the risk of Alameda not repaying FTX, Sam acknowledged a certain level of risk.

Under questioning, Sam Bankman-Fried initially avoided answering whether borrowing money from FTX to repay debts was a margin transaction. When prompted by the judge, he admitted it was "not."

The prosecutor presented financial balance sheets suggesting Caroline Ellison created them to conceal Alameda's losses under Sam's direction. Despite owing FTX $9.9 billion, the bank account showed only $525 million. Sam denied seeing these documents, but the prosecutor referenced metadata indicating he accessed the spreadsheet on June 19, 2022.

In October 2022, Sam admitted knowing Alameda owed FTX $10 billion. He considered replacing it with Modulo Capital but deemed dissolving Alameda unfeasible after reviewing the fund's situation.

The trial will resume on October 31 (US time).

Read the full article here: Day 15 Of Sam Bankman-Fried Trial: “I’m Not Sure, I Don’t Remember” Became The Catchphrase

 

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Day 16 Of Sam Bankman-Fried Trial: End Of Questioning Of Witnesses

This is the last day Sam Bankman-Fried testifies in his own trial for the collapse of the FTX cryptocurrency exchange.

The U.S. Prosecutor’s Counterarguments

Following the 15th day of the trial, the U.S. prosecutor questioned Sam Bankman-Fried about his ties with the Bahamian government, where FTX is based. He admitted knowing the Prime Minister, Mr. Phillip Davis, and assisting with tasks for the Prime Minister’s son.

Through social connections facilitated by K5 Global, Sam had the opportunity to invite former politicians Bill Clinton and Tony Blair to an FTX conference in April 2022, featuring celebrities like Katy Perry and Orlando Bloom.

When FTX collapsed, Sam directed Bahamian customers to be prioritized in withdrawals to appease authorities.

The prosecutors refocused on North Dimension, a company Sam established to receive deposits from FTX customers, managed by Alameda Research. Sam admitted to not disclosing the connection externally.

Sam couldn’t identify Alameda personnel involved in spending, despite approving direct investments, including Anthropic AI ($500 million) and K5 Global ($700 million).

Regarding FTX’s accounting errors, Sam, initially unconcerned, later acknowledged the $8 billion debt discrepancy after subordinates fixed the loophole.

Despite canceling a trip to Washington D.C., Sam claimed the issue wasn't significant. The loophole fix revealed Alameda still owed FTX $8 billion.

The prosecutors questioned Sam's knowledge of FTX's financial difficulties in September 2022, revealed only during the November bankruptcy. Sam cited a policy of not disclosing internal information.

Regarding FTX’s balance sheet, Sam admitted awareness of the $3.9 billion illiquid assets but insisted it was still possible to meet withdrawal demands.

The prosecutors presented text messages estimating Alameda could sell $3.9 billion in assets, insufficient to repay FTX's $8 billion. Sam acknowledged the market impact of liquidating FTT, SOL, and SRM.

They inquired about Sam’s reaction to associates pleading guilty, revealing documents drafted during that period as Sam questioned the reasons behind his employees' guilty pleas.

End of Questioning Session

Sam Bankman-Fried is the last witness in the trial, as neither the prosecutor nor the defense has called additional witnesses. The trial will reconvene on November 1st for the final debate between the prosecution and defense lawyers, marking the conclusion of the trial proceedings.

Read the full article here: Day 16 Of Sam Bankman-Fried Trial: End Of Questioning Of Witnesses

 

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Day 17 Of Sam Bankman-Fried Trial: Final Argument Between The Prosecution And Defense Attorneys

The trial of former FTX CEO Sam Bankman-Fried is gradually approaching its conclusion with the final arguments between the plaintiff and the defendant.

On the 17th day of the trial, DOJ prosecutors claimed Sam Bankman-Fried lied, leading to billions in FTX losses. They argued he masterminded fraud, abused power for Alameda Research, and falsified financial reports, causing FTX's collapse. Despite reassurances, he knew the platform lacked liquidity.

Bankman-Fried's defense portrayed him as a victim of a biased narrative, claiming he had good intentions despite alleged fraud. They argued FTX's issues were business-related, not deceptive, pointing to inconsistencies in witness testimonies. The defense questioned why, if guilty, Bankman-Fried engaged with media, testified, and settled debts. They emphasized the challenges of running multi-billion-dollar ventures in a new industry and urged the jury to see mistakes as unforeseeable risks.

The trial is set for a November 2nd verdict after emotional final statements.

Read full article here: Day 17 Of Sam Bankman-Fried Trial: Final Argument Between The Prosecution And Defense Attorneys

 

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Day 18 Of Sam Bankman-Fried Trial: Former FTX CEO Was Found Guilty Of All Charges
Former FTX CEO Sam Bankman-Fried was found guilty of all 7 charges placed on him after a month-long trial.

After listening to testimonies from both the prosecution and defense, which included statements from Sam Bankman-Fried himself, the 12-member jury spent the majority of the day in deliberation. The 18th trial session was conducted in private for the jury to reach a decision.

Following over 3 hours of deliberation, the jury conveyed to Judge Lewis Kaplan that they had reached a unanimous decision. Consequently, Sam Bankman-Fried was found guilty on all seven charges outlined in the indictment.

• Conspiracy to commit customer deposit fraud;
• Customer deposit fraud;
• Conspiracy to defraud creditors;
• Fraud of creditors;
• Conspiracy to commit property fraud;
• Securities fraud conspiracy;
• Money laundering conspiracy.

Nevertheless, Judge Kaplan specified that the sentencing phase for the former FTX CEO would take place on March 28, 2024. Sam Bankman-Fried potentially faces a sentence of up to 115 years.

In response to the verdict, Sam Bankman-Fried's defense lawyer stated that an appeal had been filed against the court's decision. Meanwhile, the former FTX CEO will remain in custody at a New York City prison.

Despite the current trial outcome, Sam Bankman-Fried is confronted with additional charges from the US Department of Justice. These allegations include violations related to financial donation regulations, bank fraud, operating an illegal money transfer organization, and bribery of foreign officials. Further legal proceedings may be initiated against him in connection with these charges.

Source: Day 18 Of Sam Bankman-Fried Trial: Former FTX CEO Was Found Guilty Of All Charges

 

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The Court Postponed the Trial of the Mango Markets Attacker to April 2024

The trial of Avraham Eisenberg, the Mango Markets attacker who caused hundreds of millions of dollars in damage, has been postponed for another 4 months.

Avraham Eisenberg will appear in court on April 8, 2024, instead of December this year. It is known that the person behind the Mango Markets attack needs more time to prepare for trial.

Mango Markets was attacked in October 2022, with losses of up to 114 million USD. At that time, the hacker also arrogantly forced Mango to let him keep 47 million USD as a bug bounty. The mastermind of the attack, Avraham Eisenberg, was arrested in Puerto Rico at the end of December of that year, at the behest of the US Department of Justice, and after a lawsuit was filed by the Futures Assets Commission (CFTC).

By January of this year, the US Securities Commission (SEC) issued an indictment against Avraham. According to the indictment, he orchestrated a plot to manipulate the price of MNGO, the native token of Mango Markets. After inflating the price of MNGO, he used this newly increased value to borrow a series of other assets on Mango and withdrew them all, stealing all of the protocol's liquidity.

The case is being handled by the Southern District of New York court, which just sentenced Sam Bankman-Fried in just a short time. Eisenberg's trial schedule is moving at a similar pace.

Avraham's legal team requested more time to prepare. The charges against Eisenberg involve complex concepts, making prosecution and defense far more difficult than the relatively straightforward Bankman-Fried fraud case. Although reluctant, the court agreed to postpone the trial to April next year.

Avraham Eisenberg could face up to 20 years in prison.

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[cmnews]

FTX Wants to Sell 744 Million USD of Treasury Shares of Grayscale and Bitwise

FTX is planning to sell $744 million worth of Grayscale and Bitwise trust fund shares to fulfill its debt obligations.

According to a court filing on 03/11/2023, the bankrupt FTX has requested court approval to sell the collateral assets, including Grayscale and Bitwise trust fund shares, valued at $744 million.

FTX argues that selling or transferring these assets will quickly generate cash to meet its debt obligations. The exchange proposes to sell through an investment advisor, a third party assisting in the liquidation, reducing additional costs and complexities associated with direct crypto transactions.

Specifically, the assets are held in five Grayscale trust funds with an estimated total value of $691 million and one Bitwise-managed trust fund worth $53 million.

FTX states that this action is aimed at proactively minimizing the risk of excessive price volatility affecting the interests of creditors. Liquidating these assets into cash will help distribute funds for debt repayment more equitably.

Previously, the court allowed FTX to sell $3.4 billion in crypto and execute coin transfers to prepare. FTX's wallet has transferred a total of $170 million to CEX exchanges.

FTX is now preparing to sell Grayscale and Bitwise trust fund shares. However, objectively, selling these shares is not expected to have a significant impact compared to directly dumping crypto assets.

In a related development, last week, FTX founder Sam Bankman-Fried was convicted on all charges, and the sentencing hearing is scheduled for 03/28/2024. The former CEO may face a sentence of up to 115 years in prison.

Read our article here: https://coinminutes.com/news/ftx-plans-to-sell-grayscale-and-bitwise-assets-worth-744-million/

 

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Cathie Wood, CEO of ARK Invest, believes Bitcoin is a secure long-term asset, citing its decentralized nature and transparency. She sees traditional banks facing challenges and believes they may struggle to meet withdrawal demands, leading to increased interest rates. Wood connects this to the 2023 banking crisis and argues that Bitcoin's value is reinforced by such events. Despite acknowledging gold's merits, she trusts Bitcoin to hedge against inflation and deflation. Other notable investors, like Stanley Druckenmiller and Paul Tudor Jones, share positive views on Bitcoin.
Read the full article here: https://coinminutes.com/news/cathie-wood-bitcoin-is-a-hedge-against-both-deflation-and-inflation/

 

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Solana recently saw a 9% surge in its token SOL, hitting a 24-hour high of $44.41. Despite ties to the controversial FTX exchange and a tumultuous past, Solana experienced a remarkable comeback. Functioning as a Layer 1 blockchain, it employs Proof of History and Proof of Stake mechanisms for speedy and cost-effective transactions. Launched in 2020 to tackle the blockchain trilemma, Solana is dubbed the "Ethereum Killer." With gas fees significantly lower than Ethereum, Solana has become a preferred choice for DeFi, NFT, and Gaming projects. Major partnerships with Shopify and Visa further boosted its appeal, attracting significant investor interest and causing a strong rebound in SOL coin.

Read the full article here: “Ethereum Killer” Solana Has A Spectacular Turnaround

 

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SEC Chair Gensler hinted at FTX's potential relaunch during an interview, stressing the need for compliance with U.S. laws. Speculation surrounds Tom Farley, ex-NYSE CEO, as a potential leader, currently heading Bullish—a bidder for FTX.

Gensler's advice on legal adherence and investor trust seems directed at Sam Bankman-Fried, previously charged with fraud, leading to FTX's downfall. The current FTX management aims to sell to recover, with Bullish, Proof Group, and a crypto VC firm as potential buyers.

Gensler values Farley's capabilities, endorsing Bullish's bid for FTX's revival under legal compliance. He emphasizes cleaning up the crypto space, highlighting the risks of non-compliance with sanctions and money laundering laws.

FTX's potential revival has boosted its native token, FTT, witnessing a 71% price surge, currently around $2.07.

Read the full article: SEC Chairman Gary Gensler Hints He’s Open To An FTX Reboot Under Proper Leadership

 

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On October 11, the former legal director of OneCoin, Irinia Dilkinska, admitted to engaging in fraudulent activities, including illegal money laundering. She could face a 10-year prison sentence for participating in unauthorized cryptocurrency transactions totaling $4 billion. Despite her role as legal director, Dilkinska facilitated illicit actions, including laundering millions of illegally obtained profits. One instance involved transferring $110 million in fraudulently obtained proceeds to an entity in the Cayman Islands. Dilkinska's sentencing is scheduled for Feb. 14, 2024, with a maximum sentence of 10 years for her role in the OneCoin scheme. The DOJ first charged her with wire fraud and conspiracy to commit money laundering on March 21. The "Crypto Queen" Ruja Ignatova remains at large, listed among the FBI's top 10 most wanted criminals.

Read the full article here: OneCoin Legal Chief Faces 10-Year Prison Sentence For Fraud

 

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FTX sues Bybit and subsidiaries, alleging VIP abuse and withdrawal pressure. Seeks 953 million USD recovery, including 327 million USD withdrawn by Mirana Ventures. Asset prices based on November 1, 2022, to be updated in legal proceedings.

FTX continues post-bankruptcy asset recovery, planning up to 90% compensation for users pending court approval by Q2/2024.

By November 8, 2023, FTX transfers 300 million USD assets to CEX for liquidation. Court-approved 3.4 billion USD crypto sale in September.

FTX seeks court approval for 744 million USD crypto trust shares sale from Grayscale and Bitwise. Organizations eye FTX acquisition; SEC Chairman hints at possible approval.

Read the full article here: FTX Takes Legal Action, Sues Bybit To Recover 953 Million USD In Assets

 

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Massive Data Breach Exposes Personal Information of 300,000 Coin Cloud Customers

Personal Information of 300,000 Coin Cloud Customers Leaked Following Bitcoin ATM Company's Bankruptcy Filing.

An unidentified hacking group has stolen 70,000 selfies and personal details of 300,000 Coin Cloud customers, a Bitcoin ATM installation and operation company in the United States and Brazil, which filed for bankruptcy earlier this year.

According to a post on the Twitter account of cybersecurity expert vx-underground, the leaked data includes names, social security numbers, birthdates, email addresses, phone numbers, and more. The hackers also revealed that they accessed the source code in Coin Cloud's backend system.

Vx-underground shared with The Block that the audacious hacking group made statements in private channels, threatening to publicly disclose the stolen data soon. Coin Cloud has yet to provide any response.

Visit our website for more crypto news: CoinMinutes

 

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Ex-FTX Foundation employee Ross Rheingans-Yoo, shocked by FTX's sudden collapse, seeks to reclaim $275,000 salary and 2022 bonus.

Legal filing states FTX Foundation owes him the amount post-bankruptcy. Evidence includes Google Doc with terms, emphasizing Rheingans-Yoo's outsider status in Bankman-Fried's inner circle.

Advisers claim full bonus payment via equity before bankruptcy. Delaware judge to decide fate of substantial bonus.

FTX sues Latona Biosciences for $71.6 million alleging personal benefits to Rheingans-Yoo and Bankman-Fried. FTX's financial turmoil leaves global employees unable to access salaries frozen on the platform during customer withdrawal suspension.

Read the full article here: FTX Foundation Employees Rally To Reclaim $275,000 Bonus Amid Company Turmoil

 

[cmnews]

NFT Mutant Ape Planet Owner Admits Guilt in $3 Million Fraud Case

French programmer Aurelien Michel pleads guilty in U.S. federal court, agrees to pay a $1.4 million fine.

The mastermind behind Mutant Ape Planet, a 'knockoff' of the NFT collection Mutant Ape Yacht Club, officially confessed yesterday (November 14) in connection to a nearly $3 million rug-pull fraud case, as reported by the U.S. Department of Justice (DOJ).

Aurelien Michel, a French citizen residing in the United Arab Emirates (UAE), was arrested earlier this year in New York and faces up to 5 years in prison. According to the Eastern District of New York attorneys, Michel has accepted a $1.4 million fine.

As alleged, Aurelien Michel covertly orchestrated a rug-pull scheme, stealing nearly $3 million from investors. Buyers of NFT Mutant Ape Planet believed they were investing in a trending collection, only to realize they received no benefits.

Michel's admission on Discord coincided with his escape, leaving many investors in shock and realizing they had been deceived.

There are numerous sophisticated schemes targeting crypto users, particularly those involved with NFTs. In connection with this, a new scam called "sleepdrop" has caused over $11.5 million in damages since its first discovery in December 2022.

The scam involves sending seemingly reputable ERC-1155 tokens (often NFTs) randomly to users. The tactic preys on victims visiting fraudulent websites, enabling scammers to exploit transactions and deplete assets. The culprits behind this scam remain unidentified, emphasizing the need for users to exercise extreme caution and vigilance.

Read the article here: Creator Of Mutant Ape Ripoff NFTs Faces 5 Years In Prison Fraud Scheme