The Sam Bankman-Fried experiment is underway, data for the Alex Mashinsky experiment is being prepared, and Binance’s market share is shrinking.
Top news this week
Opening arguments begin in the trial of Sam Bankman Fried
The trial of former FTX CEO Sam SBF Bankman-Fried began on October 4 in New York after jury selection began the day before. Assistant U.S. Attorney Thein Rin told jurors that SBF used FTX clients’ money to enrich himself and gain credibility among politicians through donations. The defendant blamed the downturn in the cryptocurrency market. But he committed fraud. This is what the evidence will show in this trial. You will hear from his inner circle. Ren said his girlfriend will tell you how they stole the money together. SBF’s lawyer, Mark Cohen, said his girlfriend, former Alameda Research CEO Carolyn Ellison, and Changpeng Zhao, CEO of rival cryptocurrency exchange Binance, share some of the blame for FTX’s downfall. Check out our detailed recap of the first week of the trial for Sam Bankman Fried.
Alex Mashinsky’s jury trial is scheduled for September 2024
Alex Mashinsky, the former CEO of cryptocurrency lender Celsius, will go on trial on fraud and market manipulation charges in September 2024, a judge decided on October 3. Mashinsky will remain free on $40 million bail, subject to travel and financial restrictions, in court. Meanwhile. Celsius declared bankruptcy in July 2022, and Mashinsky was arrested in July of this year. He is accused of defrauding investors of billions of dollars. The U.S. Commodity Futures Trading Commission, the Securities and Exchange Commission, and the Federal Trade Commission all have active cases against Mashinsky as well. Ronnie Cohen-Pavone, Celsius’ former chief revenue officer, pleaded guilty to four criminal charges in September.
Binance’s spot market share declines for the seventh month in a row
Cryptocurrency exchange Binance continues to lose market share for the seventh month in a row. Analysts say HTX (formerly Huobi), Bybit and DigiFinex were the beneficiaries of the Binances segment. According to an analysis by CCData reported by Bloomberg, Binances’ spot market share fell from 38.5% in August to 34.3% in September. In the derivatives market, Binances’ share fell from 53.5% to 51.5% in the same period. Ongoing conflicts with US regulators were identified as one of the reasons for Binances’ decline in market share, but they also cited the end of the exchange’s promotion of fee-free trading for major trading pairs and Binances’ withdrawal from the Russian market, which accounted for 7 percent of its traffic.
Alameda Sent $4.1 Billion in FTT Tokens to FTX Before Crash: Nansen Report
A report shared with Cointelegraph by blockchain data analyst Nansen shows that FTX transferred $4.1 billion worth of its native FTT tokens to Alameda Research between September 28 and November 1, 2022. FTX and Alameda Research controlled about 90% of FTT’s supply. Nansen suggested that companies were using them to shore up each other’s budgets. FTX also transferred $388 million in stablecoins to Alameda Research during the same period. The data indicated that Alameda Research was unable to proceed with its offer to Binance CEO Changpeng Zhao to buy shares of the FTT exchange at $22 on November 6. Caroline Ellison, CEO of Alameda Research, made the offer on FTX filed for bankruptcy days later.
Valkyrie holds back on purchases of Ethereum futures until ETF launch
Asset management firm Valkyrie said in a filing with the U.S. Securities and Exchange Commission (SEC) on September 29 that it will not purchase Ethereum before receiving approval for its exchange-traded fund (ETF). Valkyrie had previously told Cointelegraph that it plans to allow investors exposure to ETF futures ahead of the launch of a joint Bitcoin and Ether Strategic Investment Fund in early October. Not only that, but Valkyrie said it would sell the ETH futures contracts it had already purchased. Valkyrie is among several financial companies that are expected to start offering ETH futures ETFs soon. The Securities and Exchange Commission has delayed decisions on many of them. Observers say this may be due to concerns about the US government shutdown.
Winners and losers
And at the end of the week, Bitcoin (Bitcoin) At $27,880, Ethereum (Ethereum) Priced at $1640 and XRP Priced at $0.52. The total market capitalization is $1.07 trillion. According to To Coin Market Cap.
Among the top 100 cryptocurrencies, the top three altcoin gainers this week are Trust Wallet Token (TWT) by 18.11% avalanche (avax) At 17.5% and presented (render) By 17%.
The three biggest altcoin losers this week are ApeCoin (monkey) At -9.5%, Thorchen (Ron) At -9.3% and the DAO curve symbol (CRV) At -8.8%.
For more information on cryptocurrency prices, be sure to read Cointelegraphs’ market analysis.
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Most of the quotes are memorable
We have allowed Alameda to withdraw unlimited funds.
Gary Wangco-founder and former CTO of FTX
He told me to use Signal. He told the entire company. It also had automatic deletion. […] he said that [auto-delete] It was all on the downside of message retention. If regulators find things they don’t like, it can be bad for the company.
Adam Jedediaha former FTX employee and roommate at SBF
Macroeconomic headwinds are limiting our ability to generate revenue, and in response to current market conditions and business realities, we must reduce roles across the global business.
Pascal GauthierCEO and Chairman of Ledger
The appeal of cryptocurrencies currently remains in BTC, with a promising event horizon below the line, still favoring strong accumulation.
Vettel LundimSenior Analyst at K33
It is relatively difficult to innovate in traditional finance. In cryptocurrencies, it is much better and more efficient. In terms of cost, it is much cheaper. So, you can see that the pace is much faster, and we can serve a larger audience than traditional finance right now.
linux layGlobal Commercial Director at OKX
Banks have trillions of dollars worth of transactions with each other at the end of the day, but there is a final time where you simply cannot transact internationally. It’s a huge pain point, and it’s also expensive and ineffective.
Akshay Chopravice president and head of innovation and design for the Central and Eastern Europe, Middle East and Africa region at Visa
Bitcoin bull market awaits as US faces Arthur Hayes cliff
With bond yields rising to 30-year highs, financial markets are set to inject mass liquidity in the near future, according to BitMEX founder Arthur Hayes. This would provide the next impetus for the bullish cryptocurrency market, he said.
Why do I like these markets now when yields are rising? Hayes argued that bank models have no concept of a bear regression occurring. The term “bear slope” describes the phenomenon of long-term interest rates rising more quickly than short-term interest rates.
“The faster this slope goes up, the faster someone will go up, the faster everyone will realize that there is no other way out than printing money to save government bond markets, and the faster we can get back into the crypto bull market,” Hayes said.
FUD for the week
Cryptocurrencies suffered a 153% year-over-year increase in hacks and fraud in the third quarter
Blockchain security platform Immunefi has released a new report on cryptocurrency hacks and scams for the third quarter. According to the report, the number of hacking and fraud operations increased by more than 153% in the period from July to September 2023 compared to the same period of the previous year. In Q3 2022, there were only 30 incidents, while there were 76 incidents in Q3 2023. Over $680 million worth of cryptocurrencies were lost to fraud and hacks during this quarter. The largest hack of the quarter was the Mixin protocol, draining over $200 million, while the Multichain hack of over $126 million was the second largest. The two most targeted networks were BNB Chain and Ethereum.
Bitcoin analysts still expect the BTC price to collapse to $20,000
Bitcoin holders were happy when the coin started October at a six-week high, but technical analysts warn it could be headed for a drop to $20,000 soon. According to a Bitcoin trader with the nickname CryptoBullet, the current chart shows a classic head and shoulders pattern that generally means the price is about to fall. The bottom of the left shoulder of this pattern is at around $20,000, which means the price will fall to that point before recovering. Joao Widson, founder and CEO of cryptocurrency trading resource Dominando Cripto, went further, claiming that Bitcoin could fall below $20,000. According to Wedson, the current price action forms a fractal similar to the period 2020-2022. The last time this happened, the price rose dramatically initially, but then collapsed to lower levels by the end of the fractal. In Widson’s view, this means that we may be in the early stages of a move below the $20,000 level.
The US Treasury imposes sanctions on cryptocurrency wallets while authorities crack down on fentanyl
The US Department of the Treasury’s Office of Foreign Assets Control announced that it has imposed sanctions on multiple portfolios linked to manufacturers and traders of the illicit drug fentanyl. According to Deputy Secretary of the Treasury Wally Adeyemo, the wallets received millions of US dollars on hundreds of deposits as payment for various fentanyl-related criminal activities. The wallet sanctions began as part of an indictment targeting certain chemical manufacturers in China. Valerian Labs, Hanhong Pharmaceutical and Hebei Crovell Biotech were three of the parties named in the indictment.
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