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SEC criticized by crypto executives for lack of clarity

Stephen Cook Stephen Cook on March 24, 2023

SEC – After the current events in the crypto field, some executives from crypto businesses have expressed their dissatisfaction with the US government.

Several have chastised them for a lack of understanding of the industry’s regulations.

Yet, the Securities and Exchange Commission is a key target of the crypto community’s fury owing to its aggressive efforts against crypto businesses.

US & crypto

While other countries are becoming receptive of Bitcoin, the United States is lagging behind.

The government has yet to adopt a complete set of legislation that would allow cryptocurrency and blockchain enterprises to operate without fear of being targeted by officials.

With the collapse of cryptocurrency exchange FTX in 2022, the US Securities and Exchange Commission (SEC) has taken the initiative to increase legal measures against firms.

The clash

The SEC issued a Wells notice to Coinbase, one of the leading cryptocurrency exchanges, on Wednesday.

It issued a warning to the corporation after discovering probable breaches of US securities law.

In addition, the SEC charged crypto entrepreneur Justin Sun with fraud and unregistered securities against celebrities who promoted digital currency he was advocating.

The SEC is now involved in a legal battle with numerous other cryptocurrency startups, including Gemini, Genesis, and Ripple.

Reception

“It feels uncollaborative,” said an anonymous crypto executive over the Paris Blockchain Week event.

“It’s very frustrating for players that have been doing right the whole time.”

Meanwhile, ConsenSys CEO and Ethereum co-founder Joe Lubin voiced alarm about the ecosystem.

“I think we’re sort of continuing to watch the SEC play this game of punishing the people that are still surviving,” said Blockchain.com president Nicolas Cary.

“And it’s a little bit, you know, sort of frustrating thing to observe.”

The majority of the SEC’s activities include applying contemporary restrictions to the crypto business decades after the Howey Test.

The Howey Test is an important test for determining whether or not something is secure.

Yet, many in the cryptocurrency business believe that is not the best approach to go.

“Where I think you have less successful regulatory regimes is when you try to analyze crypto through the lens of traditional finance,” said Oliver Linch, the CEO of Bittrex Global.

“You say, ‘Well, is it a bit like a security? Is it a commodity?’ No, it’s kind of none of those things. It’s crypto.”

Read also: TikTok ban would be better for China than selling

Clarity & sympathy

The Paris Blockchain Week is one of Europe’s most famous crypto events, and the SEC’s actions were one of the most hotly debated subjects among guests.

Some executives asked US regulators for clarification.

“We’d love to have a little more clarity in regulation,” said Silvio Micali, the founder of blockchain company Algorand.

Some, on the other hand, were more sympathetic to SEC.

They said that the watchdog is following the regulations as they are, and that the US government has the authority to amend them.

“What are they supposed to do? If all you’re given is a hammer, the whole world looks like a nail,” said Linch.

However, Cary stated that the SEC is simply doing its job in order to safeguard customers.

The SEC

In an editorial article published on The Hill this month, SEC Chair Gary Gensler addressed the issues, claiming that the agency was clear on the laws.

“I find the talking point that there’s a lack of clarity in the securities laws unpersuasive,” he said.

“Some crypto companies might message that the laws are unclearer rather than admitting that their platforms don’t have sufficient investor protection.”

Gensler also identified examples of crypto enterprises that are subject to traditional securities rules, such as when they provide loan products.

Furthermore, he stated that crypto middlemen are not lined up to register with the SEC and comply with Congress’ legislation.

Additionally, the SEC chair stated that enforcement proceedings are another tool in the regulator’s arsenal for weeding out noncompliance.

Falling behind

CEOs cautioned that the United States’ lack of effective regulation might cause the country to slip behind other countries and jurisdictions.

“It’s incumbent, I think, on Congress to actually create a legal regulatory framework that regulates crypto properly, because… crypto is here to stay,” said Linch.

Governments throughout the world are debating how to regulate bitcoin.

Dubai and Switzerland have both recognized themselves as crypto-friendly jurisdictions with favorable regulations.

Meanwhile, the European Union plans to implement the Markets in Crypto-Assets Regulation, or MiCA, in 2023.

It is intended to impose regulations on and around digital currency enterprises.

Ripple’s president, Monica Long, fears the United States may slip behind other jurisdictions in the crypto economy.

“Europe is really emerging as a leader in terms of setting really clear regulations and rules that allow crypto companies and also traditional finance to embrace crypto,” said Long.

Image source: The American Prospect

Alameda payments gave SBF bulks of cash

Stephen Cook Stephen Cook on March 20, 2023

Alameda – On Wednesday, the new management of discredited crypto exchange firm FTX made an unexpected disclosure about its founder’s payouts.

Sam Bankman-Fried, the company’s co-founder and ex-boss, allegedly received $2.2 billion in payments and loans from Alameda Research.

The amount is astounding and stands out when compared to other bosses.

Caroline Ellison, the former CEO of Alameda Research, was paid only $6 million.

According to documentation provided by the new management, a total of $3.2 billion was distributed to ex-FTX employees, the majority of whom came from the company’s sister trading firm.

Alameda

When FTX went bankrupt in late 2022, Alameda Research was at the epicenter of the turmoil.

Sam Bankman-Fried also created the quantitative trading business.

Alameda has the authority to exploit FTX client assets for its own purposes without monitoring, according to newly appointed FTX CEO John J. Ray III, who inherited leadership when SBF fled.

Conversely, FTX was once considered one of the pinnacles of the Web3 era.

It was a digital asset exchange where clients could buy, trade, and speculate on the future prices of various cryptocurrencies.

Before collapsing, FTX had over 134 firms under its banner and was based in the Bahamas, which was more receptive to cryptocurrency.

SBF launched Alameda in 2019, although he claims he quit the trading firm’s leadership role in 2021, putting day-to-day operations in the hands of others.

Prosecutors believe that FTX’s abrupt insolvency was caused by management placing extremely hazardous wagers with client funds provided by Alameda Research.

The payouts

SBF got the majority of the $3.2 billion in compensation, according to records revealed this week by FTX’s new administration.

While he got the biggest share of the pie, former FTX director of engineering Nishad Singh got $587 million.

Meanwhile, Gary Wang, co-founder, received $246 million.

Former FTX Digital Markets co-CEO Ryan Salame received $87 million, while former Alameda Research co-head Sam Trabucco received $25 million.

They did not include the large sum of more than $240 million spent to purchase luxury property in the Bahamas, according to the release.

Also, it should be noted that Trabucco resigned as CEO of Alameda in August.

He hasn’t been seen or heard from since.

Prosecutors have neglected to charge Sam Trabucco, despite the fact that the rest of SBF’s inner circle has already been charged.

Read also: Sam Bankman-Fried made donations to lawmakers before elections

Ellison

Caroline Ellison was elevated to be Alameda Research’s sole CEO in October 2021, following Trabucco’s retirement.

They were previously the platform’s co-CEOs.

Ellison had an on-again, off-again romance with Sam Bankman-Fried.

While her participation in the company’s demise was well publicized, her history drew her even more attention, since her now-deleted Tumblr blog provided a fairly unusual view on what happened in the Bahamas penthouse.

The penthouse had ten housemates, including Ellison and SBF, who made high-level decisions there.

The group was defined as a “polycule,” or a network of people in a polyamorous relationship, so choices were not the only thing going on around the house.

Ellison’s blog, which was active from 2014 until 2022, displayed material in November that corresponded precisely with her history.

The contents of her blog revealed a great interest in racial science and polyamory.

It also gave greater insight into the author’s perspective on the crypto sector, as stated in one post:

“I didn’t get into this as a crypto true believer. It’s mostly scams and memes when you get down to it.”

The charges and the company today

In the United States, Sam Bankman-Fried is now facing 12 criminal counts, some of which were handed down in a superseding indictment in February.

The charges also involve a conspiracy to perpetrate fraud on FTX clients in connection with derivatives purchases and sales.

SBF pleaded not guilty to the original accusations in January.

He has been awaiting his trial in October since then.

Meanwhile, Ellison, Wang, and Singh have admitted to the deception and are collaborating with authorities.

Now, billions of dollars in FTX customer funds are missing, with a large portion alleged to have been stolen.

Image source: Salon.com

Sam Bankman-Fried on $250 million bail, ordered to live with parents

Sarah White Sarah White on March 20, 2023

Image source: Forbes

Sam Bankman-Fried: The founder of FTX could be released on a $250 million bond, according to a ruling made by a federal judge in New York on Thursday.

He is awaiting his trial on the charges of fraud and other offenses.

The news

Sam Bankman-Fried, his parents, attorney, and court security left the Manhattan US District Court around 2:00 p.m.

The prosecutors and his attorneys accepted the bail conditions for Bankman-personal Fried’s recognizance.

So, on January 3 in New York City, Judge Ronnie Abrams will preside over the 30-year-old’s subsequent hearing.

He will be charged there and enter a plea.

Bond

A recognizance bond is a written promise from the accused to appear in court upon a summons.

Sam Bankman-Fried won’t be required to complete all of the bail’s collateral requirements upon release.

The bond, guaranteed by the equity in his family’s home, was signed by his parents and two other parties with substantial assets.

The prosecution describes the $250 million package, which also includes an electronic monitoring bracelet, as the largest pretrial bond in history.

The Northern District of California and the Southern & Eastern Districts of New York must be avoided, and he must also agree to receive mental health therapy.

Read also: FTX collaborators charged, both plead guilty

In the court

Judge Gabriel Gorenstein stated that after being released to his parents’ California home, Bankman-Fried would require constant supervision.

The courtroom was attended by SBF’s parents, both Stanford law professors.

On either side of the FTX founder, two US marshals in blue suits and brown shoes stood.

He switched his ankle shackles for an ankle monitor while in the courtroom.

He only spoke when the judge asked Sam Bankman-Fried if he understood the repercussions of breaking the bail agreement.

“Yes, I do,” said SBF.

Bankman-Fried is also prohibited from opening new credit accounts valued at more than $1,000.

Federal regulators dub him a “brazen” fraud at his crypt empire while awaiting the trial.

SBF was at the heart of “a fraud of epic proportions,” according to Assistant US Attorney Nicolas Roo in court.

Roos continued by saying that he had never fled, had voluntarily returned to the US, and had drastically reduced his financial assets.

Sam Bankman-Fried, who formerly ran a $32 billion crypto empire, once claimed to have only $100,000 in his bank account.

This was a dramatic decline for the man.

Accusations

The following are the charges against Sam Bankman-Fried:

  • Perpetrating a multibillion-dollar fraud on his investors
  • Using customer funds to purchase properties
  • Funding political donations
  • Backstop trades at his hedge fund Alameda Research

SBF, FTX, and Alameda Research were all charged with further crimes by the Commodity Futures Trading Commission last week.

They claimed that FTX mingled customer funds and that Bankman-Fried violated the Commodities Exchange Act.

Allegedly having access to more than $8 billion in client funds was Alameda Research.

Since the company’s founding in 2019, Alameda has had access to and utilized FTX customer funds for its operations and activities, including:

  • Trading
  • Funding
  • Investment
  • Borrowing/lending

The SEC’s accusations that Sam Bankman-Fried operated his empire as a fraud from the start were supported by the CFTC as well.

FTX submitted bankruptcy protection in Delaware on November 11.

John Ray III, Sam Bankman-Fried’s replacement as CEO of FTX, asserted that he had never seen such a loss of corporate control.

SBF’s lieutenants

On Wednesday, Caroline Ellison, a former co-CEO of Alameda Research, and Gary Wang, a co-founder of FTX, both pleaded guilty to federal charges.

Gary Wang pleaded guilty to the following:

  • Conspiracy to commit wire fraud
  • Wire fraud
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud

Meanwhile, Caroline Ellison was guilty of:

  • Two counts of wire fraud
  • Two counts of conspiracy to commit wire fraud
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud
  • Conspiracy to commit money laundering

Their plea agreements were made public on Wednesday.

Read also: The Federal Reserve impact on stock market; Thursday market updates

SBF

The US Attorney charged Sam Bankman-Fried with eight offenses, including money laundering and securities fraud.

He was transported by air from the Bahamas to New York on Wednesday night.

SBF’s bail is far higher than that of other federal white-collar defendants.

  • While waiting for his massive Ponzi scheme trial, Bernie Madoff posted a $10 million bail.
  • Former Enron CEO Jeff Skilling posted a $5 million bond.
  • Elizabeth Holmes, the Theranos founder, posted a $500,000 bond.

Reference:

FTX founder Sam Bankman-Fried to be released on $250 million bail, will live with his parents

CFTC piles on new charges against Bankman-Fried, FTX and Alameda

FTX’s Gary Wang, Alameda’s Coraline Ellison plead guilty to federal charges, cooperating with prosecutors

Silicon Valley Bank collapse kicks off blame game

Ken Jacobs Ken Jacobs on March 14, 2023

Silicon Valley Bank – The initial shock of the SVB collapse has worn off, and the blame game has begun as people look for those to blame.

The tech sector is blaming Silicon Valley Bank CEO Greg Becker.

Many blame Becker for the corporation’s status as the second-largest American financial catastrophe in history.

According to an alleged SVB employee, Becker publicly highlighted the bank’s financial problems before covertly providing cash assistance to weather the storm.

Individuals withdrew their cash as a result of the activities, which created a fearful atmosphere.

“That was absolutely idiotic,” said the employee. “They were being very transparent.”

“It’s the exact opposite of what you’d normally see in a scandal. But their transparency and forthright-ness did them in.”

The buildup

Greg Becker and his leadership team indicated last Wednesday night that they projected to raise $2.25 billion in cash from $21 billion in asset sales, resulting in a $1.8 billion loss.

Despite its best efforts, SVB has yet to make any firm pledges.

The news shook Silicon Valley, where the bank has been a crucial lender to tech startups.

Many business owners were terrified.

According to California regulator records, several corporations withdrew $42 billion on Thursday, while Silicon Valley Bank’s shares fell 60%.

As Silicon Valley Bank closed that day, it had a negative cash position of around $958 million.

“People are just shocked at how stupid the CEO is,” said the SVB employee.

“You’re in business for 40 years and you are telling me you can’t raise $2 billion privately? Get on a jet and fly to Kuwait like everyone else and give them control of one-third of the bank.”

Silicon Valley Bank has yet to comment, but CEO Greg Becker is claimed to have apologized to employees in a video statement.

“It’s with an incredibly heavy heart that I’m here to deliver this message,” said Becker.

“I can’t imagine what was going through your head and wonder, you know, about your job, your future.”

Read also: Mortgage rates still on 5-week trajectory

Hysteria

Silicon Valley Bank officials, according to Jeff Sonnenfeld, CEO of Yale School of Management’s Chief Executive Leadership Institute (CELI), deserve to be admonished for their “tone-deaf, bungled execution.”

In a joint statement, Sonnenfeld and CELI’s research director, Steven Lian, noted:

“Someone lit a match and the bank yelled, ‘Fire!’ – pulling the alarms in earnest out of genuine concern for transparency and honesty.”

Sonnenfeld and Tian claimed on Wednesday night that it was unnecessary to publicize the $2.25 billion unsubscribed capital offering.

They noted that Silicon Valley Bank had sufficient capital to fulfill regulatory requirements.

They also stated that reporting the $1.8 billion shortfall was superfluous.

The one-two blow, according to Sonnenfeld and Tian, generated a massive frenzy, culminating in a rush to withdraw deposits.

They speculated that the bank may have spaced the statements by at least one or two weeks, reducing the impact.

On Sunday, President Joe Biden’s administration unveiled a proposal to assist Silicon Valley bank clients.

Biden also emphasized that the US government will investigate all parties involved in the SVB catastrophe thoroughly.

He released a statement saying:

“I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again.”

The Fed’s involvement

According to Jeff Sonnenfeld and Steven Lian, Jerome Powell, the Chairman of the Federal Reserve and Biden’s choice to lead the Feds, and his colleagues bear some of the blame.

“There should be no mistaking that Silicon Valley Bank’s collapse was a direct result of the Fed’s persistent and excessive interest rate hike,” they wrote.

They stated that the Fed’s efforts to reduce inflation had two effects:

  • The value of the bonds Silicon Valley Bank was relying on for capital
  • The value of the tech startups SVB catered

Silicon Valley Bank, on the other hand, had over a year to prepare for and deal with the problems.

The unnamed SVB employee called the bank’s balance-sheet manipulation “stupidity,” casting doubt on the CEO and CFO’s strategy.

But, the employee, who is also a Wall Street veteran, believes the bank’s downfall was caused by mistakes and “naivety” rather than illegal activity.

“The saddest thing is that this place is Boy Scouts,” they said.

“They made mistakes, but these are not bad people.”

Image source: Reuters

Caroline Ellison testimony sheds light on FTX

Ken Jacobs Ken Jacobs on December 27, 2022

Image source: Daily Mail

Caroline Ellison: In court, the former CEO of FTX’s sister firm, Alameda, admitted that she had lied to lenders about their financial information.

Ellison agreed with the previous FTX CEO to give “materially misleading financial statements” to Alameda’s lenders.

The news

The transcript of Caroline Ellison’s trial testimony was made public three days after she spoke in court on December 19, although SBF was not released on a $250 million bond until then.

The former CEO of Alameda testified to US District Court Judge Ronnie Abrams, saying, “I am truly sorry for what I did – I knew that it was wrong.”

“Did you also know that it was illegal?” the court asked her to clarify.

“Yes,” Ellison answered.

Federal charges

The other co-founder of FTX, Gary Wang, and Caroline Ellison admitted last week to participation in the frauds that led to the company’s downfall.

According to attorneys for the Southern District of New York on Wednesday, the two have been charged.

The Securities and Exchange Commission charged them with participating part in a plan to defraud equity investors.

A change had been made, according to the Commodities Futures Trading Commission (CFTC), to its fraud complaint.

According to US Attorney Damian Williams, Ellison and Wang filed guilty pleas.

Williams also expressed gratitude to the Bahamas, the US Embassy there, and the Justice Department’s Office of International Affairsfor their help.

Gary Wang and Caroline Ellison are cooperating with the Southern District of New York.

Before Sam Bankman-Fried had been on his way from the Bahamas to the US, they didn’t reveal their plea agreements.

Read also: Sam Bankman-Fried on $250 million bail, ordered to live with parents

The financial statements

According to Caroline Ellison, the misleading financial statements came from “quarterly balance sheets that concealed the extent of Alameda’s borrowing and the billions of dollars in loans that Alameda had made.”

“I agreed with Mr. Bankman-Fried and others not to publicly disclose the true nature of the relationship between Alameda and FTX, including Alameda’s credit arrangement,” said Ellison.

The following reported about the transcript:

  • New York Times
  • Reuters
  • Bloomberg

A section of the transcript was tweeted by Matthew Russell Lee of Inner City Press.

Early reports

According to reports that surfaced last week, the workers of FTX and Alameda were either aware of or oblivious of what was occurring between the two companies.

The uncertainty generated a lot of discussion before to Ellison and Wang admitted guilt to their charges.

Caroline Ellison’s comments, however, supported rumors that FTX had treated Alameda differently.

Alameda was permitted to withdraw funds from its sister company.

Ellison said:

“I understood that FTX executives had implemented special settings on Alameda’s FTX.com account that permitted Alameda to maintain negative balances in various fiat currencies and crypto currencies.”

“In practical terms, this arrangement permitted Alameda access to an unlimited line of credit without being required to post collateral, without having to pay interest on negative balances and without being subject to margin calls or FTX.com’s liquidation protocols.”

She claimed that the former CEO of Alameda and others were aware of the company’s enormous debt and what it implied.

“I understood that if Alameda’s FTX accounts had significantly negative balances in a particular currency,” she continued.

“It meant that Alameda was borrowing funds that FTX’s customers deposited onto the exchange.”

Read also: Google review system pressures employees

SBF

Caroline Ellison claims that Sam Bankman-Fried and other executives borrowed money from Alameda while taking part in a number of “large illiquid venture investments.”

She said that in order to repay the loans, she and others had agreed to borrow from FTX in the billions of dollars.

“I understood that FTX would need to use customer funds to finance its loans to Alameda,” Ellison shared.

“Most FTX customers did not expect that FTX would lend out their digital asset holdings and fiat currency deposits to Alameda in this fashion.”

Caroline Ellison also addressed the victims of the FTX collapse, saying:

“I want to apologize for my actions to the affected customers of FTX, lenders to Alameda, and investors in FTX.”

“Since FTX and Alameda collapsed in November 2022, I have worked hard to assist with the recovery of assets for the benefit of customers and to cooperate with the government’s investigation.”

“I am here today to accept my responsibility for my actions by pleading guilty.”

References:

Caroline Ellison ‘knew that it was wrong,’ implicates Sam Bankman-Fried

Caroline Ellison, Gary Wang plead guilty, cooperating in FTX investigation

SEC says Ellison, Wang ‘knew or were reckless in not knowing’ about FTX fraud

A beginner’s guide to buying crypto with IBINEX

Sarah White Sarah White on December 22, 2022

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FTX debt is enormous, 50 creditors owed millions

Karla Perry Karla Perry on November 21, 2022

Image source: The Block

FTX, the renowned cryptocurrency exchange, has been under a lot of heat for the past few weeks.

According to documents filed Saturday in Delaware bankruptcy court, FTX owes $3.1 billion to its top 50 creditors.

The document clarifies the extent of potential client losses.

The filing

According to Saturday’s filing, the crypto exchange’s top 10 creditors have more than $100 million in unsecured claims each.

The claims amount to more than $1.45 billion.

The filing explained that the debt does not include any liabilities to company insiders.

However, this may change with additional information.

FTX owes its largest creditor more than $276 million.

In addition, the company now owes about $21 million to its 50th creditor.

Despite the massive debt, the filing can only scratch the surface of what the company owes.

Last week, FTX said it might have more than a million creditors.

The company also owes its third-largest creditor $174 million.

While unconfirmed, the figure is consistent with what cryptocurrency lender Genisis announced ten days ago: $175 million in funds locked in its FTX trading account.

Read also: Elon Musk talks about how busy he’s become

Filing notice

A notice accompanying the filing explains that FTX based the totals on information that was visible but not accessible.

The notice claims that the company did not have full access to customer data.

FTX, led by new CEO John J. Ray III, said in the filing that the debt numbers might be inaccurate.

Payments to creditors may need to be reflected in the company’s books or records.

Creditors

A request was made to withhold information about FTX’s creditors and their personal information.

Additionally, the motion states that disclosing the names of creditors could give predatory companies a head start.

It reads:

“Public dissemination of the Debtors’ customer list could give the competitors an unfair advantage to contact and poach those customers, and would interfere with the Debtors’ ability to sell their assets and maximize value for their estates at the appropriate time.”

“The Debtors historically did not keep appropriate books and records,” it continued.

“[And] the Debtors are currently working to access certain sources of data and records that are currently unavailable.”

Read also: Sam Bankman-Fried suffers 94% financial loss

Chapter 11 cases

The decision to create an FTX creditor list came from overlapping creditors in Chapter 11 cases, disorganized filing, and limited time and resources.

“Creditor information, and in particular customer information, is not clearly labeled or identifiable by [FTX],” the motion reads.

“As a result, presenting the information on a consolidated basis will ensure the most relevant and known information can be promptly disclosed.”

A date for the “first day of hearings” in FTX’s bankruptcy proceedings has been set.

As a result, it will take place on Tuesday in Wilmington, Delaware.

Reference:

FTX says it owes over $3 billion to its 50 largest creditors

Sam Bankman-Fried suffers 94% financial loss

Sarah White Sarah White on November 10, 2022

Image source: The Information

Sam Bankman-Fried made his mark as a cryptocurrency entrepreneur as the industry grew.

The renowned crypto entrepreneur is known for providing financial lifelines to struggling businesses in the crypto industry.

However, after a turn of events, Sam Bankman-Fried needs financial help.

Read also: Blockchain set for massive exposure in Abu Dhabi

SBF

Sam Bankman-Fried is commonly referred to as SBF in the cryptocurrency world.

Earlier this week, he was one of the wealthiest people in the world.

Bankman-Fried was a billionaire with a net worth of over $15 billion, according to the Bloomberg Billionaire Index.

However, his FTX cryptocurrency exchange went down, putting his position in danger.

Now the club could overthrow Sam Bankman-Fried within days.

Read also: Yuga Labs’ founders voice support for creators royalties

FTX

Sam Bankman-Fried’s most valuable assets were his stakes in the cryptocurrency exchange FTX.

FTX is the cryptocurrency exchange he founded along with Alameda.

Meanwhile, Alameda is a cryptocurrency trading house.

The Bloomberg Index assumes the stock market would wipe out Bankman-Fried and others.

The index also suggested that FTX and Alameda would become worthless unless Binance rescued them.

However, Binance announced Thursday that it would withdraw from the deal.

Sam Bankman-Fried’s net worth is now worth over $1 billion.

According to the Bloomberg Index, his net worth fell 94%, making it the most enormous one-day loss for a person.

Reference:

Crypto’s white knight lost 94% of his wealth in a single day

Blockchain set for massive exposure in Abu Dhabi

Lilian Swift Lilian Swift on November 10, 2022

Image source: IDB

Blockchain technology has been the hottest topic in the tech industry in recent years and is now looking to progress further.

A new blockchain and crypto association was recently formed in the Abu Dhabi Free Economic Zone.

Its goal is to improve the development of the blockchain and crypto ecosystem in the Middle East, North Africa, and Asia.

The association

The Middle East, Africa & Asia Crypto & Blockchain Association (MEAACBA) was founded days earlier on the Abu Dhabi Global Market (ADGM).

Furthermore, the ADGM is a free economic zone in the city’s center.

It is governed by its own civil and commercial laws.

In addition, the zone aims to promote the growth of fintech companies in the United Arab Emirates (UAE).

The nonprofit organization aims to ease regulatory solutions, create business opportunities and invest in education to support industry growth.

Staff

The MEAACBA will be led by CEO Jehanzeb Awan.

Awan is the founder of an international risk and compliance consultancy based in Dubai.

Other association supporters include:

  • Richard Teng, Binance’s regional head of the Middle East and North Africa (MENA)
  • Stuart Isted, Crypto.com’s general manager of Middle East and Africa
  • Ola Doudin, the CEO of BitOasis, a cryptocurrency exchange in the region

Additionally, Awan said he hopes the organization will bring a collective, community-based approach to enhancing industry growth in the MENA region.

He also hopes to develop significant benefits for the “highly dynamic and exciting” space.

“The industry will benefit from the Association as it provides a coordination mechanism between regulators, government agencies, banks, legal tax, and advisory firms to address the most pressing challenges,” said Awan.

Finally, Ahmad Jasim Al Zaabi, chairman of the ADGM, said that adding the MEAACBA would help create a “more progressive financial sector” in the region.

The launch

The launch of MEAACBA comes as the FSRA in November released some “guiding principles” in its approach to dealing with the regulatory complexities that the digital asset industry brings.

The Financial Services Regulatory Authority is the financial regulatory body of the ADGM Free Economic Zone.

In addition, the principles are “crypto-friendly.”

It continues to adhere to the United Nations’ strict international Anti-Money Laundering (AML) and Anti-Terrorist Financing (CFT) standards.

Moreover, recent studies show that the MENA region is the fastest-growing cryptocurrency market.

Moreover, the volume of transactions in the MENA region between July 2021 and June 2022 has increased by 48% in the last 12 months. It reached $ 566 billion.

The use case for cryptocurrencies in emerging markets comes from holding savings and money transfers.

Finally, it curbs inflation in unstable economies.

Reference:

Middle East, Asia, and Africa blockchain association launches in Abu Dhabi

Dogecoin value improves thanks to Elon Musk

Karla Perry Karla Perry on October 31, 2022

Image source: Fox Business

Dogecoin is thriving better than ever after Elon Musk took over Twitter, helping the coin get out of crypto winter.

The coin is selling for $0.12 as of this writing.

Dogecoin rally

The meme coin had a long rally when the wealthiest man in the world finally bought the popular social media platform.

Earlier this week, Dogecoin’s value briefly doubled to 14 cents.

Elon Musk’s influence on the cryptocurrency has been going on for years, but the coin finally overshadowed prices last seen in May.

Although Musk didn’t mention Dogecoin after the Twitter purchase, he did reply to Billy Markus on Twitter, one of the developers behind the meme coin.

Over the past week, Dogecoin’s value has grown exponentially.

The meme coin has gone from $8.1 billion to $16,630,929,389 (at the time of this writing).

Dogecoin has overtaken coins like Cardano and Solana to become the 8th largest cryptocurrency by market cap.

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Crypto exchanges

The cryptocurrency has seen substantial volume on major cryptocurrency exchanges over the past few days.

It is currently the third most traded token on Coinbase, accounting for 14% of the exchange’s total trading volume.

Meanwhile, trading between stablecoin Tether and Dogecoin generated $1.8 billion on Binance in the past 24 hours.

It represents 10% of the total trading volume of the exchange.

Additionally, the meme coin and Binance USD trading exceeded $900 million, representing 5% of the exchange’s total trading volume.

Coin movement

Despite the rally, Dogecoin is still down 84% from its all-time high of 73 cents in May last year.

That day, Elon Musk was a guest host on Saturday Night Live.

Upon his appearance, the coin plunged 35% as he dubbed it the future of currency but also referred to it as a hustle.

Read also: Tesla Sells 75% of Its Bitcoins but Leaves Dogecoins Untouched According to Musk and Q2 Earnings Report

Musk and Dogecoin

Dogecoin’s growing popularity can be partly attributed to Musk’s multi-year relationship with the meme coin.

In the past, he referred to the coin in several tweets.

Musk would later add Dogecoin as a means of payment for some of the products and services offered by his companies.

Some Tesla products are available for sale with Dogecoin on the company’s website.

Additionally, The Boring Company is taking cryptocurrency as payment for its Las Vegas Loop.

In April, Elon Musk announced plans to allow Twitter users to use Dogecoin to pay for Twitter Blue, the platform’s premium subscription service.

The Tesla founder’s fondness for Dogecoin dates back to 2019 when he tweeted:

“Dogecoin may be my fav [sic] cryptocurrency.”

From there, he would share memes about the play.

However, not everyone believes that Musk supported the coin in good faith.

In June, a $258 billion lawsuit hit Musk, SpaceX and Tesla.

The lawsuit alleged that Elon Musk pumped the cryptocurrency.

Besides Dogecoin, Musk’s acquisition has also impacted dog-themed coins like Shiba Inu and Dogechain, which are up 19% and 100% this week.

Reference:

Dogecoin leaps 94% in weekly gains following Elon Musk’s Twitter acquisition