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

Prime Tales 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 Power and is more likely to keep there till February, after his software for bail was denied in Bahamian court docket. A second software for bail has been reportedly filed by SBF within the Supreme Court docket of the Bahamas. His arrest got here after the USA authorities formally filed felony prices in opposition to him — together with eight counts of fraud. If convicted, Bankman-Fried might face 115 years in jail, however authorized commentators have advised 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 Regulation Faculty being canceled. In different current developments concerning FTX, a class-action lawsuit in opposition to Silvergate Financial institution was filed in California, aiming to carry the financial institution accountable for its alleged roles in putting FTX person deposits into the financial institution accounts of Alameda Analysis.

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

Enterprise capital investor Kevin O’Leary claimed at a U.S. Senate committee listening to that Binance and FTX “have been at warfare 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 function, O’Leary claimed. Current days have seen Binance beset by concern, uncertainty, and doubt (FUD), leading to a drop within the alternate’s liquidity. Crypto analytics agency Nansen studies that Binance had web 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 lowering crypto purple tape

United States lawmakers are underneath stress to enact crypto laws in mild of the collapse of FTX, and Congressman Tom Emmer believes that that is “in all probability time” to re-introduce a bipartisan invoice that may raise necessities for sure crypto companies and initiatives to register as Digital Asset Service Suppliers (VASPs). The invoice, titled the Blockchain Regulatory Certainty Act, goals to take away some hurdles and necessities for “blockchain builders and repair suppliers,” akin to miners, multi-signature service suppliers and decentralized finance platforms.

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

Two of probably the most outstanding auditors have all of the sudden stopped providing crypto auditing providers. At a vital second for the crypto business, Mazars Group eliminated Binance’s proof-of-reserve audits from its web site simply days after confirming the crypto alternate managed 575,742 Bitcoin. The choice affected different crypto exchanges utilizing Mazars’ providers, akin to and KuCoin. Later, Mazars defined the pause was attributable to “issues concerning the best way 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, and the embattled FTX alternate.

MetaMask to permit customers to buy and switch Ethereum through PayPal

In one other transfer into the crypto area, PayPal teamed up with MetaMask mum or dad firm ConsenSys to permit the acquisition and switch of Ether (ETH) by means of its platform. By logging into the MetaMask app, customers will be capable to entry their PayPal account and full transactions. Initially, solely chosen PayPal customers in the USA will be capable to check the service. Different conventional funds firms are in search of to combine crypto into their providers. In October, Western Union additionally filed three logos for managing digital wallets and exchanging digital property.

Winners and Losers

On the finish of the week, Bitcoin (BTC) is at $16,826, Ether (ETH) at $1,194 and XRP at $0.35. The overall market cap is at $817.82 billion, in accordance to CoinMarketCap.

Among the many largest 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 highest three altcoin losers of the week are Neutrino USD (USDN) at -33.77%, Belief Pockets Token (TWT) at -27.43%, and Chain (XCN) at -23.42%.
For more information on crypto costs, make sure that to learn Cointelegraph’s market evaluation.

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Most Memorable Quotations

“Binance is an enormous unregulated international monopoly now, they usually put FTX out of enterprise.”

Kevin O’Leary, enterprise capital investor

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

Danielle Cloud, former FTX worker

“Our expertise to this point of [crypto] platforms, whether or not FTX or others, is that they’re intentionally evasive, they’re a way by which cash laundering occurs in dimension.”

Ashley Alder, appointed chair of the UK’s Monetary Conduct Authority

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

Andrew Newman, chief know-how officer and co-founder of ReasonLabs

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

Arthur Hayes, former CEO of BitMEX

Prediction of the Week 

Bitcoin dips underneath $17K as ‘craziest rumors’ over Binance sink BTC worth

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

“Attention-grabbing to see everybody all of the sudden so bearish on BTC as if it’s solely performing so weak. SPX is doing precisely the identical, possibly 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 job 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 soundness of its cloud providers and higher defend prospects from dangers like cyber fraud, assaults and unauthorized entry to assets, in keeping with a report. The brand new restrictions have 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’ electronic mail addresses and partial cellphone numbers, per paperwork obtained by Cointelegraph. Based on Gemini, the breach was attributable to a third-party vendor, nevertheless it additionally warned of ongoing phishing campaigns. The leaked database didn’t comprise any delicate private data akin to names, addresses and different Know Your Buyer data.

SEC sues Atlas Buying and selling for $100M inventory manipulation scheme

The USA Securities and Change Fee (SEC) filed a declare in opposition to eight people related to the Discord-based discussion board Atlas Buying and selling 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 criticism.

Finest Cointelegraph Options

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Pay attention up! Cointelegraph launches crypto podcasts, beginning with 4 exhibits

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

Editorial Employees

Cointelegraph Journal writers and reporters contributed to this text.

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