The Trial of FTX Founder Sam Bankman-Fried Begins
The trial of Sam Bankman-Fried, the founder of FTX, began this week in New York. Bankman-Fried is facing fraud charges against clients and investors. On Tuesday, former Alameda CEO Caroline Ellison testified in court. Prior to the trial, lawyers declined a request for a Ukrainian FTX client to testify remotely due to wartime restrictions. Bankman-Fried’s legal team cited concerns about the emotional impact of the conflict between Russia and Ukraine and potential jury bias.
FTX Hackers Move Stolen Funds
FTX hackers, who exploited the platform for $413 million last November, have moved some of the stolen money this week. THORSwap, a prominent DEX platform, has suspended all swap operations after an increase in the use of the platform for guiding stolen funds. The hackers transferred $124 million worth of ETH to tBTC and transferred tokens to the Bitcoin network.
Layoffs in the Crypto Sector
The crypto sector is witnessing more layoffs, with entities reporting significant financial losses in the third quarter of 2023. Chainalysis, Chia Network, Meta, Ledger, Yuga Labs, and Yield Protocol have all announced workforce reductions. Chainalysis reduced its employees by 15%, Chia Network said goodbye to 26 employees, Meta implemented job cuts in its Reality Labs division, Ledger announced a potential 12% cut in its workforce, Yuga Labs restructured its company leading to the departure of team members, and Yield Protocol decided to shut down operations.
Israel Astonished by Hamas Attack
The conflict between Hamas and Israel escalated with deadly air strikes by the IDF in response to a surprise attack by Gaza activists. Hamas rules the Palestinian territories of Gaza and had relied on crypto money for years, but in 2020, the US Department of Justice claimed to have dismantled online terrorist financing campaigns and seized millions of dollars worth of digital assets.
Ripple Continues Battle Against US SEC
Ripple achieved another victory in its lawsuit against the US Securities and Exchange Commission (SEC) when Judge Analisa Torres denied the SEC’s request for an interlocutory appeal. The case will now proceed to trial, which is scheduled to begin on April 23, 2024. Ripple also obtained a Major Payments Institution (MPI) license in Singapore, allowing them to provide digital asset services in the city-state.
US Crypto Regulation Continues
CFTC Chairman Rustin Behnam emphasized the importance of strong cryptocurrency regulation at the Futures Industry Association 2023 Show. He suggested rating 70% of encryption assets as goods and urged Congress to create clear digital asset regulations and expand the CFTC’s authority. US Representative Patrick McHenry also expressed his crypto-friendly stance as he temporarily assumed the role of Speaker of the House.
