This week, a jury found FTX founder Sam Bankman-Fried guilty of all charges against him. The market also continues to be bullish, while the SEC continues its crackdown across the industry.
Sam Bankman-Fried found guilty
- After an 18-day trial, Sam Bankman-Fried was found guilty of all seven counts, sparking a strong reaction from the cryptocurrency community.
- The judgment scheduled for March 28, 2024 has aroused expectations in the industry.
- Pro-cryptocurrency lawyer John Deaton claimed that Bankman-Fried could face 30 to 40 years in prison. Meanwhile, Lesperance & Associates managing director David Lesperance is expected to be sentenced to 20 years in prison.
- Bankman-Fried’s associates Caroline Ellison, Gary Wang and Nishad Singh may face sentencing, according to Bloomberg.
- These allies may avoid substantial incarceration, potentially serving in minimum-security facilities for nonviolent offenders.
Bitcoin maintains gains, staying above $35,000
- A few weeks ago, Bitcoin (BTC) experienced a bullish surge, driven largely by hopes of a spot ETF being approved. The surge spread into the new week.
- At the beginning of this week, BTC price reached $34,000. Still, one important indicator points to significant volatility in the asset.
- Data from Santiment shows a significant decline in whale activity and social engagement related to Bitcoin.
- Despite this, BTC recovered a further $35,000 on November 1 as it continued to rise. The asset targeted $36,000 levels shortly after and rose to a yearly high of $35,984 on November 2 before facing resistance.
- Amid the upward trend of the past few weeks, CoinShares’ latest market report shows that $326 million has flowed into cryptocurrency investment products this year, which is the largest inflow since July 2022.
- Bitcoin is targeting positions above $35,000, with occasional pullbacks and losses below that level.
US SEC targets SafeMoon and PayPal
- This week, the team behind PayPal and cryptocurrency project SafeMoon received the attention of the U.S. SEC.
- Regulators issued a subpoena to PayPal in connection with the issuance of the PYUSD stablecoin, requiring the company to provide certain documents. PayPal confirmed it was working with the agency.
- On November 1, the SEC filed fraud and money laundering charges related to SafeMoon against SafeMoon executives Braden John Karony, Kyle Nagy and Thomas Smith.
- The SEC accused the team of marketing SafeMoon as an unregistered crypto-asset security.
- The agency accused them of artificially increasing SafeMoon’s market value to $5.7 billion through strategies such as wash trading.
The Terraform case continues
- This week, Terraform Labs co-founder Daniel Shin denied having anything to do with Terra’s collapse amid South Korean accusations of fraud and corruption.
- Shin’s legal team claimed in a Korean court that co-founder Do Kwon was solely responsible for Terra’s downfall.
- Meanwhile, in the United States, Terraform Labs took the bold step of seeking an early dismissal of the multibillion-dollar securities fraud lawsuit filed against it by the SEC in February.
- Their argument hinges on the SEC’s failure to provide substantial evidence that Terraform Labs engaged in unregistered securities trading.
- However, the SEC has its own plans. There are reports that the agency is actively seeking summary judgment against Do Kwon and Terraform Labs on all charges.
- The SEC’s goal is to bypass a full trial and emphasize the existence of clear, undisputed facts in its lawsuit.
MicroStrategy Buy More Bitcoin
- MicroStrategy continues to relentlessly accumulate cryptocurrencies, adding 155 Bitcoins worth $5.3 million to its portfolio in October 2023.
- According to the Q3 2023 earnings report, the latest acquisition brings their total BTC holdings to an impressive 158,400 BTC, worth over $5.6 billion.
- MicroStrategy CEO and President Phong Le asserts that the company is well-positioned to benefit from Bitcoin momentum and the growth of its business intelligence (BI) business.
OpenSea confirms layoffs
- OpenSea co-founder and CEO Devin Finzer disclosed the layoff plan via social media on November 3.
- The move is part of “OpenSea 2.0”, where the digital collectibles trading hub will move to expansion Its dominance in the non-fungible token (NFT) market.
- The latest news from OpenSea comes after a tumultuous period after former product chief Nathanial Christin was found guilty of insider trading on fraud and money laundering charges.
Yuga Labs partners with Magic Eden
- Yuga Labs, the creators of Bored Ape Yacht Club and Magic Eden, are collaborating to launch an Ethereum NFT marketplace to ensure creators receive the correct royalties.
- Magic Eden will be responsible for sharing a portion of the secondary market sales proceeds from its NFT series with Yuga Labs.
- Magic Eden is expanding support for Solana-powered compressed NFTs (cNFTs). The cNFT feature makes it easier for creators to mint NFTs on the Solana network.
Avi Eisenberg trial rescheduled
- The trial of cryptocurrency trader Avi Eisenberg, accused of defrauding $110 million, has been postponed to April 2024. The trial was initially scheduled to begin next month.
- The government agreed to postpone the trial until April 8, 2024, and the judge approved the decision on November 4, 2023.
- Eisenberg was charged with commodities manipulation and wire fraud, specifically for deploying highly profitable trading strategies against Solana-based Mango Markets in October 2022.