SBF dangers 115 years in jail, Binance’s FUD, and auditors stop crypto: Hodler’s Digest Dec. 11-17

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Top Stories This Week

FTX founder Sam Bankman-Fried arrested, set to be extradited to US

Sam Bankman-Fried was taken into custody by the Royal Bahamas Police Force and is prone to keep there till February, after his utility for bail was denied in Bahamian courtroom. A second utility for bail has been reportedly filed by SBF within the Supreme Court of the Bahamas. His arrest got here after the United States authorities formally filed legal fees in opposition to him — together with eight counts of fraud. If convicted, Bankman-Fried might face 115 years in jail, however authorized commentators have informed Cointelegraph there’s a “lot to play out” within the case. The domino impact ensuing from FTX’s meltdown has additionally impacted the skilled lives of Bankman-Fried’s mother and father, ensuing of their programs at Stanford Law School being canceled. In different current developments relating to FTX, a class-action lawsuit in opposition to Silvergate Bank was filed in California, aiming to carry the financial institution accountable for its alleged roles in inserting FTX consumer deposits into the financial institution accounts of Alameda Research.

Binance ‘put FTX out of enterprise’ — Kevin O’Leary

Venture capital investor Kevin O’Leary claimed at a U.S. Senate committee listening to that Binance and FTX “had been at conflict with one another, and one put the opposite out of enterprise deliberately.” The listening to was half of a bigger investigation by lawmakers into FTX’s collapse, by which Binance had a big position, O’Leary claimed. Recent days have seen Binance beset by worry, uncertainty, and doubt (FUD), leading to a drop within the trade’s liquidity. Crypto analytics agency Nansen studies that Binance had internet withdrawals of greater than $3.6 billion from Dec. 7 to Dec. 13.

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Rep. Tom Emmer mulls bringing again invoice geared toward decreasing crypto crimson tape

United States lawmakers are beneath strain to enact crypto rules in gentle of the collapse of FTX, and Congressman Tom Emmer believes that that is “most likely a very good time” to re-introduce a bipartisan invoice that might raise necessities for sure crypto companies and initiatives to register as Virtual Asset Service Providers (VASPs). The invoice, titled the Blockchain Regulatory Certainty Act, goals to take away some hurdles and necessities for “blockchain builders and repair suppliers,” reminiscent of miners, multi-signature service suppliers and decentralized finance platforms.

No extra proof-of-reserve checks? Auditors quietly drop crypto initiatives from portfolios

Two of essentially the most distinguished auditors have immediately stopped providing crypto auditing providers. At a crucial second for the crypto trade, Mazars Group eliminated Binance’s proof-of-reserve audits from its web site simply days after confirming the crypto trade managed 575,742 Bitcoin. The choice affected different crypto exchanges utilizing Mazars’ providers, reminiscent of Crypto.com and KuCoin. Later, Mazars defined the pause was as a consequence of “considerations relating to the way in which these studies are understood by the general public.” Accounting agency Armanino has additionally ended its crypto auditing providers. Armanino has labored with a number of crypto buying and selling platforms like OKX, Gate.io and the embattled FTX trade.

MetaMask to permit customers to buy and switch Ethereum by way of PayPal

In one other transfer into the crypto area, PayPal teamed up with MetaMask father or mother firm ConsenSys to permit the acquisition and switch of Ether (ETH) by way of its platform. By logging into the MetaMask app, customers will have the ability to entry their PayPal account and full transactions. Initially, solely chosen PayPal customers within the United States will have the ability to check the service. Other conventional funds corporations are searching for to combine crypto into their providers. In October, Western Union additionally filed three emblems for managing digital wallets and exchanging digital property.

Winners and Losers

At the top of the week, Bitcoin (BTC) is at $16,826, Ether (ETH) at $1,194 and XRP at $0.35. The complete market cap is at $817.82 billion, in line with CoinMarketCap.

Among the most important 100 cryptocurrencies, the highest three altcoin gainers of the week are Toncoin (TON) at 30.36%, Bitcoin SV (BSV) at 10.11%, and OKB (OKB) at 9.77%.

The high three altcoin losers of the week are Neutrino USD (USDN) at -33.77%, Trust Wallet Token (TWT) at -27.43%, and Chain (XCN) at -23.42%.
For extra data on crypto costs, be certain that to learn Cointelegraph’s market evaluation.

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Most Memorable Quotations

“Binance is an enormous unregulated world monopoly now, and so they put FTX out of enterprise.”

Kevin O’Leary, enterprise capital investor

“I supposed it made sense. The child was younger, the ideas had been revolutionary, the concepts had been golden. […] Who was I to problem that?”

Danielle Cloud, former FTX worker

“Our expertise thus far of [crypto] platforms, whether or not FTX or others, is that they’re intentionally evasive, they’re a technique by which cash laundering occurs in measurement.”

Ashley Alder, appointed chair of the United Kingdom’s Financial Conduct Authority

“Just as we’re protecting of our bodily property, we have to be sure that folks defend their digital property and private data inside the metaverse.”

Andrew Newman, chief expertise officer and co-founder of ReasonLabs

“Looking ahead, just about everybody who might go bankrupt has gone bankrupt.”

Arthur Hayes, former CEO of BitMEX

Prediction of the Week 

Bitcoin dips beneath $17K as ‘craziest rumors’ over Binance sink BTC value

Bitcoin fell beneath $17,000 as merchants remained cautious over Binance’s FUD triggering overly bearish BTC value motion. On Bitstamp, BTC/USD reached multi-day lows of $16,928 on Dec. 16, in line with Cointelegraph Markets Pro and TradingView knowledge. The pair retraced its whole run to one-month highs courtesy of the most recent macroeconomic knowledge and coverage replace from the United States.

“Interesting to see everybody immediately so bearish on BTC as if it’s solely performing so weak. SPX is doing precisely the identical, perhaps even weaker,” famous Michaël van de Poppe, founder and CEO of buying and selling agency Eight, questioning whether or not the Binance FUD actually had a task to play within the markets.

FUD of the Week 

Microsoft bans cryptocurrency mining on cloud providers

Microsoft has quietly banned crypto mining from its on-line providers to extend the steadiness of its cloud providers and higher defend prospects from dangers like cyber fraud, assaults and unauthorized entry to sources, in line with a report. The new restrictions had been launched on Microsoft’s common license phrases, citing that “mining cryptocurrency is prohibited with out prior Microsoft approval.” With this transfer, Microsoft joins different cloud computing suppliers, together with Google, who additionally prohibit prospects from mining cryptocurrency with out prior written consent.

‘Third-party incident’ impacted Gemini with 5.7 million emails leaked

Gemini seems to have suffered an information breach from a third-party vendor. Hackers gained entry to five,701,649 traces of data associated to Gemini prospects’ e mail addresses and partial telephone numbers, per paperwork obtained by Cointelegraph. According to Gemini, the breach was attributable to a third-party vendor, however it additionally warned of ongoing phishing campaigns. The leaked database didn’t include any delicate private data reminiscent of names, addresses and different Know Your Customer data.

SEC sues Atlas Trading for $100M inventory manipulation scheme

The United States Securities and Exchange Commission (SEC) filed a declare in opposition to eight people related to the Discord-based discussion board Atlas Trading for alleged inventory manipulation. The SEC reported that bloggers made at the least $100 million by buying substantial positions in securities, recommending them to their followers, after which promoting their shares to capitalize on the demand they generated by their “misleading promotions.” Cryptocurrencies and different digital property weren’t talked about within the grievance.

Best Cointelegraph Features

Should crypto initiatives ever negotiate with hackers? Probably

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Listen up! Cointelegraph launches crypto podcasts, beginning with 4 reveals

Want extra crypto content material? Cointelegraph’s new podcast part options 4 separate reveals exploring a wide range of impactful matters.

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Cointelegraph Magazine writers and reporters contributed to this text.

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