Judge revokes Sam Bankman-Fried’s bail, remands him to custody
FTX’s former CEO, Sam “SBF” Bankman-Fried, had his bail revoked by a federal judge in response to the release of information to The New York Times allegedly intended to intimidate witnesses. During a hearing on Aug. 11, Judge Lewis Kaplan revoked Bankman-Fried’s bail and remanded him to custody, likely at the Putnam County Correctional Facility. Once his October trial begins, he could be moved to the Metropolitan Detention Center in Brooklyn. Bankman-Fried was reportedly led out of the courtroom in handcuffs. In Kaplan’s view, Bankman-Fried’s interviews with NYT reporters resulted in sharing information with the likely intention “to hurt and frighten” former Alameda Research CEO Caroline Ellison, his former colleague and girlfriend.
The U.S. Securities and Exchange Commission (SEC) has delayed a decision on whether to approve or disapprove the spot Bitcoin exchange-traded fund (ETF) proposed by ARK Investment Management and 21Shares. ARK originally filed to list the ETF in May, giving the SEC a maximum of 240 days — until January 2024 — to reach a final decision. The SEC’s latest move is fueling expectations that a final verdict will come as part of a batch that includes applications from key players on Wall Street, including BlackRock and Fidelity Investments.
SEC to seek appeal and stay in Ripple Labs court case
The U.S. SEC is moving to appeal a court decision from its lawsuit against Ripple Labs. In a letter to Judge Analisa Torres — the presiding judge in the case — the SEC said it believed her decision warrants a fresh look by an appellate court. The commission asked Judge Torres to put the case on hold during the appeal, saying there are multiple other pending court cases that could be affected, depending on the appeal’s outcome. The SEC is currently in a legal battle with a number of crypto firms, including Binance and Coinbase, over alleged securities violations. Judge Torres ruled, in July, that Ripple’s native token, XRP, is not a security when sold to retail investors. Torres plans to schedule the jury trial for the second quarter of 2024.
PayPal launches PYUSD stablecoin for payment
PayPal launched a new U.S. dollar-pegged stablecoin called PayPal USD (PYUSD). Built on the Ethereum network, the stablecoin is backed by U.S. dollar deposits, short-term treasuries and similar cash equivalents. According to PayPal, the stablecoin will soon be available as a mode of payment for various purchases. The fintech company is home to over 350 million active users, putting it in a strong position to become a crypto payment giant with the introduction of the new stablecoin. PYUSD will be redeemable for U.S. dollars and can be exchanged for other cryptocurrencies on PayPal, as well as being transferable between PayPal and Venmo accounts.
Temasek, Sequoia Capital, Softbank, leading VCs face lawsuit for “abetting” FTX fraud
Eighteen leading venture capital investment firms, including Temasek, Sequoia Capital, Sino Global Capital and SoftBank, have been named as defendants in a class-action lawsuit filed in the United States for their links to the now-bankrupt crypto exchange, FTX. According to the lawsuit, the investment firms were responsible for “aiding and abetting” the FTX fraud. The suit further claims that the defendants used their “power, influence and deep pockets to launch FTX’s house of cards to its multibillion-dollar scale.”
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $29,379, Ether (ETH) at $1,842 and XRP at $0.63. The total market cap is at $1.17 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are THORChain (RUNE) at 20.74%, Shiba Inu (SHIB) at 20.16% and dYdX (DYDX) at 9.63%.
The top three altcoin losers of the week are GMX (GMX) -12.47%, Mantle (MNT) at -10.10% and XDC Network (XDC) at -8.09%.
“It is clear that the world needs and will need something like Worldcoin in the coming years. We just hope that happens in a privacy-preserving decentralized, open-source, permissionless way.”
“By accepting digital currencies, we open our doors to a new segment of donors who are tech-savvy and wish to make a difference through their digital assets.”
Bitcoin trader reveals ‘important’ BTC price zone as bulls hold $29.3K
Bitcoin faces a new battleground as bulls and bears fight for control of a sideways market. Popular pseudonymous trader Daan Crypto Trades flagged, in his latest analysis, a key level to reclaim as BTC price support.
According to the trader, both Bitcoin bulls and bears are caught in a “strongly contested” range, resulting from various trips above and below the current spot price, making the midpoint the level to watch next.
“Pretty clear that the $29.5–29.7K region is an area that’s strongly contested by the bulls and bears,” Daan Crypto Trades wrote.
Bitcoin price has essentially remained the same since mid-June — $28,500 as fundamental support, $31,800 as resistance. Gaining control of the area around $29,700 is, thus, an essential move if bulls are to build the necessary momentum to change the landscape for good, the trader added.
FUD of the Week
Only 6 out of 45 crypto wallet brands have undergone penetration testing: Report
Cybersecurity platform CER found that only six of 45 cryptocurrency wallet brands, or 13.3%, have undergone penetration testing to find security vulnerabilities. Of these, only three brands have performed tests on the latest versions of their products: MetaMask, Zengo and Trust Wallet. An overall ranking of the security of each wallet lists MetaMask, Zengo, Rabby, Trust Wallet and Coinbase Wallet as being the most secure wallets on the market.
US Fed steps up oversight of banks’ involvement with crypto firms
The U.S. Federal Reserve is expanding the scope of its supervision for banks engaged with the cryptocurrency and blockchain industry. Under the Novel Activities Supervision Program, companies providing banking infrastructure to digital asset firms or working with companies that use distributed ledger technologies will be regulated. The policies apply to both insured and uninsured U.S. banks supervised by the Fed. Activities regulated under the program include the custody, lending, trading, issuance or distribution of crypto including stablecoins.
SEC announces $24M settlement for case against Bittrex and its former CEO
The U.S. SEC announced an agreement with crypto trading platform Bittrex and its co-founder and former CEO, William Shihara, for operating an unregistered exchange.Bittrex and Bittrex Global agreed to pay $14.4 million in disgorgement (the repayment of ill-gotten gains), $4 million in prejudgment interest, and $5.6 million in civil penalties to settle the legal dispute with the federal regulator. The agreement is still subject to court approval. The SEC’s complaint, filed in April, claimed Bittrex and Shihara operated an unregistered national securities exchange, broker and clearing agency.
Best Cointelegraph Features
Blockchain games aren’t really decentralized… but that’s about to change
Finnish police have seized more than $2.6 million worth of luxury watches from Hex founder Richard Heart, who is wanted on tax fraud and assault charges in the country.
Judge Katherine Failla granted Coinbase’s request for an interlocutory appeal, citing different courts’ interpretations of what constituted a security under the SEC’s purview.
The grooming gangs scandal is back in the headlines after Elon Musk attacked Sir Keir Starmer and minister Jess Phillips for failing children.
The tech billionaire has accused Sir Keir of being “complicit” in the failure of authorities to protect victims and prosecute abusers while the PM was director of public prosecutions from 2008-2013.
Sir Keir has hit back at Musk, saying his record shows how he tackled the issue head-on.
Sky News looks at a timeline of the grooming gangs scandal, inquiries and Sir Keir’s role.
How did the grooming gangs scandal unfold and what prosecutions have there been?
2001: Names of taxi drivers who allegedly picked up girls from care homes in Rotherham to abuse them are passed to the police and council from 2001. The first convictions were not until 2010, with the latest in 2024 – a total of 61.
2004: A Channel 4 documentary about claims young white girls in Bradford were being groomed for sex by Asian abusers is delayed as police forces warn it could inflame racial tensions. It was finally shown three months later.
2010: 11 men, predominantly of an Asian background, are convicted of offences connected with the sexual exploitation of children in Derbyshire.
2011: Times journalist Andrew Norfolk starts receiving tip-offs about child sexual exploitation by predominantly Asian men in Rotherham. It was his insistence on pursuing the story, despite being called racist and concerns the far-right would latch on to it, that eventually led to a national inquiry.
2011: A girl abused by a grooming gang in Huddersfield writes a letter to a judge about the abuse she had suffered. It was not until 2013 that another victim came forward to police to make formal allegations, then dozens of girls and men were interviewed over the next three years. Victims and their families said they repeatedly told police and authorities but nothing happened.
2011: Operation Bullfinch is launched by the police and council in Oxford to look into a child sex abuse ring in the city. The first convictions are secured in May 2013, then 2015, 2016, 2019 and 2020.
May 2012: The first grooming gangs convictions of men from Rochdale and Oldham see nine found guilty of being part of a child sexual exploitation ring run out of two takeaways in Greater Manchester since 2008. A further five from the Rochdale area were jailed the following year.
May 2013: Seven men have been jailed, it emerges, at the conclusion of child sex abuse trials relating to offences in the Telford area.
2017: A total of 29 men from a Huddersfield grooming gang are charged but a reporting restriction prevents media from reporting on the case to avoid prejudicing other cases. The ban was criticised by far-right groups, with Tommy Robinson – also known as Stephen Yaxley-Lennon – jailed for 13 months (later reduced to nine months) after admitting contempt for filming outside a court during the trial.
2018: Twenty men, mainly of Pakistani origin but the ringleader was Sikh, who were part of the Huddersfield child sex abuse ring are convicted of 120 rape and abuse offences against 15 girls, and sentenced to a total of 221 years.
Three separate trials had to be held as there were so many of them. More men have been convicted since then, bringing the total number to 41 by August 2021.
2023: A Grooming Gangs Taskforce is set up by Rishi Sunak’s government, with qualified officers from all 43 police forces in England and Wales, and data analysts. In May 2024, 550 suspects had been arrested and 4,000 victims identified.
2023: Nine further men are charged with sexual offences in Rotherham under Operation Stovewood. Most of the offences took place between 2003 and 2008.
2024: Operation Stovewood sees 11 more men from Rotherham convicted for the abuse of vulnerable girls.
Please use Chrome browser for a more accessible video player
3:31
‘Lies’ over grooming gangs
What inquiries have there been?
There have been 10 inquiries and reports into the grooming gangs.
2013: The Home Affairs Select Committee publishes a report into the Rochdale cases, finding the failure to protect children fell to police, social workers and Crown Prosecution Service (CPS) prosecutors.
2014: An inquiry into grooming gangs in Rotherham, led by Professor Alexis Jay and commissioned by the council in 2013, finds 1,400 children were sexually abused between 1997 and 2013 by predominantly British-Pakistani men.
Then home secretary Theresa May commissions the Independent Inquiry into Child Sexual Abuse in England and Wales following the Jimmy Savile scandal. Professor Jay became the chair after three others resigned.
2015: A West Midlands Police report from 2010 is released publicly after a Freedom of Information request by the Birmingham Mail.
It shows police knew five years before that Asian grooming gangs were targeting children outside schools in Birmingham but were worried about community tensions if it was made public.
2015: A report into Rotherham Council’s handling of child sexual abuse, commissioned by the government and led by Baroness Casey, finds the council had a bullying, sexist culture of covering up information and silencing whistleblowers.
A new police inquiry into child sexual abuse in Rotherham is launched, with 19 men and two women convicted in 2016 and 2017 of sexual offences dating back to the late 1980s.
2015: A serious case review by Oxfordshire Safeguarding Children’s Partnership finds 373 children (including 50 boys) could have been groomed and sexually exploited in the city. It accused Thames Valley Police of not believing children when they complained.
2019: An independent review into historic child sexual exploitation in Oldham shisha bars from 2011 to 2014 is commissioned by Greater Manchester mayor Andy Burnham after Oldham council requested it.
2020: The Home Office refuses to release research into grooming gangs as it said it is not in the public interest. Following public pressure it releases the report, which finds no credible evidence any one ethnic group is over represented in child sexual exploitation. It is branded a whitewash by critics.
2022: The Independent Inquiry into Child Sexual Abuseby Professor Jay is published after 12 years. It finds police and councils downplayed the scale of the problem and children were often blamed for their abuse.
It makes recommendations, including mandatory reporting of child sexual abuse by people working with children, the establishment of a national financial compensation scheme for victims “let down by institutions” and the creation of a child protection authority.
2022: Oldham councillors called for a government inquiry into grooming gangs in the town but the Conservative government rejected it and said the local authority should commission a review.
2022:Greater Manchester’s inquiry into Oldham grooming gangs was released. It found the police and council failed to protect vulnerable children and covered up their failings.
2022: The Telford independent inquiry was published and found more than 1,000 children in the town were sexually exploited and the abuse was allowed to continue for years, with children often blamed.
The inquiry found issues were not investigated because of nervousness about race, with teachers and youth workers discouraged from reporting child sexual exploitation.
2024: Oldham councillors again called for a government inquiry but safeguarding minister Jess Phillips said the council had to carry it out.
What is Sir Keir Starmer’s involvement?
2008-2013: Sir Keir Starmer was director of public prosecutions (DPP), head of the Crown Prosecution Service (CPS) which conducts criminal prosecutions in England and Wales, for five years.
2009: The CPS was criticised for not prosecuting Rochdale grooming gang suspects in 2008 and 2009. It said the main victim was “unreliable” so dropped the case.
2010-2011: In that financial year, child sexual abuse prosecutions reached 4,794 – the highest during Sir Keir’s time as DPP. In 2016/17, nearly there were nearly 7,200 prosecutions.
2011: The decision to not prosecute in Rochdale was overturned by Nazir Afzal, chief prosecutor for northwest England, appointed by Sir Keir.
2013: A Home Affairs Committee report said unlike other agencies, the CPS had “readily admitted victims had been let down by them and have attempted both to discover the cause of this systemic failure and to improve the way things are done so as to avoid a repetition of such events”.
The report added: “Mr Starmer has striven to improve the treatment of victims of sexual assault within the criminal justice system throughout his term as DPP.”
Maggie Oliver, a former Manchester detective and whistleblower, told the BBC the CPS “bears a great deal of responsibility for the failures around this issue”, including bringing inadequate charges and blaming victims.
2013: Sir Keir revised guidance on child sexual exploitation to make future prosecutions easier. Before, victims may not have been viewed as credible if they had not complained immediately, if they had used drugs or alcohol, or dressed and acted in particular ways.
2013: The Child Sexual Abuse Review Panel was created by Sir Keir to review CPS decisions not to bring charges or terminate proceedings after 5 June 2013.
What has Elon Musk said?
The billionaire, who posts on X, which he owns, many times every day, has also given a series of interviews, and has commented on the grooming gangs and child sex exploitation cases in the past. He has shown support for both Reform and Tommy Robinson and began to post about the grooming gangs scandal regularly, in response to others, in late December and early January.
31 December: In response to an X post referencing the grooming gangs and claiming “out of political correctness, the government did everything it could to cover up the crimes”, Mr Musk replied: “The government officials responsible, including those in the judiciary, need to fired in shame over this”
In response to a post that claimed that “Parents who attempted to rescue their children were arrested when the police arrived”, he said on X: “So many people at all levels of power in the UK need to be in prison for this.”
1 January: Then, after a series of other posts responding to people expressing similar views, including sympathy for Tommy Robinson and support for Reform, he responded to a post saying “Labour’s Jess Phillips, Minister for Safeguarding, refused to back a public inquiry into child exploitation in Oldham” by saying: “Shameful conduct by Jess Phillips. Throw her out.”
2 January: He responds to a poster by calling for a new election, then…
He posts: “In the UK, serious crimes such as rape require the Crown Prosecution Service’s approval for the police to charge suspects. Who was the head of the CPS when rape gangs were allowed to exploit young girls without facing justice? Keir Starmer, 2008 -2013
“Who is the boss of Jess Phillips right now? Keir Stamer. The real reason she’s refusing to investigate the rape gangs is that it would obviously lead to the blaming of Keir Stamer (head of the CPS at the time).”
Responding to a post criticising what someone called the legacy media, he said: “This is the same media that hid the fact that a quarter million little girls were – still are – being systematically raped by migrant gangs in Britain. They are beneath contempt. Despicable human beings.”
3 January: In response to a post talking about the cost of another public inquiry, he says: “No UK government inquiry for the gang rape of innocent little girls, but £22M spent on an obviously violent lunatic. Shame, shame, shame.”
He went on to accuse Keir Starmer of being “guilty of complicity” and accusing Jess Phillips of being a “rape genocide apologist”.
4 January: He responded to an article in The Daily Telegraph, which claimed to show how the grooming scandal was “covered up”, by saying “How the rape of Britain was covered up” and then later added: “The sniveling cowards who allowed the mass rape of little girls in Britain are still in power … for now”.