Crypto News Highlights

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By A D

From courtroom dramas involving a prominent crypto billionaire to regulatory changes in the UK, record-breaking investment inflows, and more, here is a recap of the most significant events from last week.

Sam Bankman-Fried Convicted in Fraud Case

Sam Bankman-Fried, the once-revered crypto billionaire behind FTX, has been convicted on all seven counts of fraud and conspiracy.This verdict followed a case that alleged he used customer money from FTX to cover losses from his hedge fund and indulged in lavish real estate purchases.

Prosecutors labeled it one of the most significant financial frauds in U.S. history. Despite his lawyers indicating an appeal, Bankman-Fried now faces the possibility of a lifetime in prison.

Before turning 30, Sam Bankman-Fried’s estimated net worth stood at a staggering $26 billion. He gained fame as the founder and CEO of FTX, a prominent cryptocurrency trading exchange. FTX’s name adorned a Miami sports arena, appeared in celebrity commercials, and caught the attention of Washington politicians.

Read: Bankman-Fried: Crypto Crown to Scam Down!

UK’s Final Proposal On Crypto Regulations

Starting from April 2024, crypto holders will need to report their crypto holdings separately on their tax returns. The government expects an additional £10 million per year in tax revenue as a result of this change.

The capital gains tax allowance, which was £12,300 in the 2022-2023 financial year, has been reduced to £6,000. From April 2024, this allowance will be further halved to £3,000. The UK government aims to regulate stablecoins to attract investments and safeguard users.

Additionally, the UK government is taking steps to regulate stable coins, aiming to position the country as an attractive investment destination and protect users. The proposed regulations will involve collaboration between the Bank of England, the Financial Conduct Authority, and the Payment Systems Regulator.

Record Inflows into Crypto Investment Products

Investor optimism has driven a remarkable surge in interest, with net inflows totaling $326 million in a single week, marking the largest weekly inflow since July 2022. The anticipation of a spot-based Bitcoin ETF approval by the SEC has played a significant role in this surge.

While the United States accounted for only 12% of the inflows, with $38 million, other countries played a more significant role. Canada, Germany, and Switzerland contributed with inflows of $134 million, $82 million, and $50 million, respectively. Asia also witnessed a notable surge in weekly inflows, reaching $28 million. The total assets under management (AUM) now stand at $37.8 billion, the highest since May 2022.

Bitcoin remained the dominant force, capturing 90% of the total inflows at $286 million. The recent price surge also attracted $15 million in inflows into short Bitcoin investment products. Solana, a digital asset, saw significant inflows of $24 million, indicating growing investor interest. However, this optimism did not extend to Ethereum, which experienced outflows totaling $6 million.

SEC Subpoenas PayPal

PYusd, paypal's forray into crypto with stablecoin
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PayPal recently confirmed that it had received a subpoena from the U.S. Securities and Exchange Commission (SEC) on November 1, 2023. The subpoena is related to PayPal’s stablecoin, PayPal USD (PYUSD), and it requests the production of documents.

PayPal’s history and its relationship with regulators set it apart from many crypto-native companies that have faced SEC inquiries. The SEC has often used subpoenas as part of its fact-finding process, and it doesn’t immediately suggest negative implications.

They mentioned the possibility that some stablecoin legislation could help bring clarity to the regulatory environment, but acknowledged that the current legislative priorities might delay such actions.

CFTC Awards $15 Million to Crypto Whistleblowers in 2023

The U.S. Commodity Futures Trading Commission (CFTC) has awarded a total of $16 million to whistleblowers this year, with a significant portion of those awards related to cases in the cryptocurrency market. The announcement was made by Commissioner Christy Goldsmith Romero, who emphasized the role of whistleblowers in helping the CFTC identify fraud and other illegal activities, particularly in the cryptocurrency space.

The CFTC’s Whistleblower program, which started in 2014, has yielded positive results over the years. It has awarded approximately $350 million to whistleblowers in cases that have resulted in enforcement sanctions totaling more than $3 billion. Whistleblowers have played a vital role in identifying fraud, interpreting evidence, and ultimately helping protect customers from harm.

SEC Charges SafeMoon and Its Creators

he U.S. Securities and Exchange Commission (SEC) has announced charges against SafeMoon, its creator Kyle Nagi, the company’s CEO John Kareny, and CTO Thomas Smith. The SEC alleges that these individuals orchestrated a massive fraudulent scheme involving the unregistered sale of SafeMoon (SFM), which the SEC classifies as a crypto asset security.

According to the SEC’s complaint, the defendants made promises of substantial profits to investors while claiming that the funds in the SafeMoon liquidity pool were securely locked and inaccessible to anyone, including themselves. However, the SEC’s investigations revealed that the defendants allegedly misappropriated millions of dollars and never locked significant portions of the liquidity pool. They used these funds for extravagant personal purchases, including luxury cars, homes, and lavish travel.

SafeMoon Price Chart
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The news of these charges has had a substantial impact on SafeMoon’s price. The token experienced a significant crash, dropping over 52%. As of the latest data, it is trading at $0.009942, marking its lowest price since its launch in 2022. Over the past year, SafeMoon has seen a decline of over 72%.

Tether Extends €575 Million Loan to Northern Data AG

Tether, recently entered into a US$610 million loan agreement with Northern Data AG, German-based Bitcoin mining company. This loan agreement provides unsecured debt financing to Northern Data AG, with the term of the facility ending on January 1, 2030. It grants Northern Data access to a significant capital infusion for several years.

Northern Data AG, based in Germany, operates across three main business lines: Taiga Cloud, Ardent Data Centers, and Peak Mining. The company is expected to use the loan’s funds to drive investments in these areas, enhancing its operations and capabilities.

Tether, the issuer of USDT, is the world’s largest stablecoin, with a market capitalization of approximately US$84.9 billion. It recently reported holding $3.2 billion in excess reserves to back its stablecoins in its third-quarter attestation. These reserves are said to be held to cover potential redemptions of Tether’s stablecoins.

Coinbase Brings ETH and BTC Futures To The U.S.

Coinbase, one of the largest cryptocurrency exchanges in the United States, has introduced a new trading avenue, allowing eligible retail customers to trade crypto futures. The Exchange has made trading crypto futures more accessible by reducing the contract sizes. Coinbase will size futures contracts at 1/100th of a Bitcoin and 1/10th of an Ethereum, making them more affordable for retail traders.

Coinbase confirms that it will settle all futures contracts in US dollars. People see Coinbase’s introduction of futures contracts as part of its strategy to compete with exchanges like Binance, which have a significant presence in the cryptocurrency derivatives market.

Coinbase has faced challenges on its expansion journey, including regulatory scrutiny. The Securities and Exchange Commission (SEC) brought charges against Coinbase for allegedly not registering appropriately. Coinbase asserted its defense, stating that the SEC’s jurisdiction is limited to securities transactions.

Bitcoin’s Impressive Comeback

Biotcoin Price Chart
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Bitcoin made a remarkable comeback, surging to over $36,000 during early Asian trading hours. This marked the first time it reached this price point since May 2022. Despite some minor setbacks, Bitcoin remains up by 4% on the day with a market capitalization of around $700 billion.

The market has experienced sharp fluctuations, with Bitcoin reaching an 18-month high and then tumbling to an 18-month low at one point. The enhanced volatility in the crypto market has had its downsides. Total liquidations have hit overleveraged traders hard, reaching a staggering $150 million on a daily scale.

It’s not just Bitcoin that’s been making waves. Several altcoins, including Solana and Uniswap, have shot up by double digits with gains of 11% and 15%, respectively. Other cryptocurrencies like ADA, Matic, DOT, and AVAX have also experienced significant price increases.

Read: Deciphering 4-Year Cycle of Bitcoin: What’s Next?

Here are the key market indicators and trends to keep in mind:

crypto market cap chart for the previous month vs this month
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  • Global Crypto Market Cap: The global crypto market cap currently stands at $1.31 trillion, reflecting a slight 0.38% decrease over the last day.
  • Increased Trading Activity: In the past 24 hours, the total crypto market volume surged to $38.39 billion, marking a significant 27.78% increase- indicating heightened market participation.
  • DeFi Volume: Decentralized Finance (DeFi) continues to play a notable role, with a volume of $4.34 billion, which accounts for 11.31% of the total crypto market 24-hour volume.
  • Stablecoins in Focus: Stablecoins, such as USDT and USDC, have gained prominence, with a combined volume of $32.89 billion. This represents 85.67% of the total crypto market 24-hour volume.
  • Bitcoin Dominance: Bitcoin’s dominance in the crypto market currently stands at 51.81%, with a decrease of 0.30% over the day.

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