Sam Bankman-Fried found guilty, what’s next for the ‘crypto king’?
Former FTX CEO Sam Bankman-Fried was found guilty of all seven charges by a jury in his criminal trial in New York after about four hours of deliberation. He was convicted of two counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodities fraud conspiracy and one count of money laundering conspiracy. He will return to court for sentencing by New York District Judge Lewis Kaplan on March 28, 2024. Government prosecutors will recommend a sentence, but Judge Kaplan will have the final say. Bankman-Fried’s crimes each carry a maximum sentence of between five and 20 years in prison with the wire fraud, wire fraud conspiracy and money laundering conspiracy carrying a maximum 20-year sentence. His lawyers, however, say the fight isn’t over yet.
Payment giant PayPal has received a subpoena from the United States Securities and Exchange Commission (SEC) regarding its U.S. dollar-pegged stablecoin. The subpoena requested that PayPal produce certain documents, the firm said. “We are cooperating with the SEC regarding this request,” PayPal noted in a financial report. The SEC has sued several of the largest local companies in the crypto industry, including its ongoing lawsuit against Coinbase. In October 2023, the regulator moved to dismiss its lawsuit against Ripple, the company behind the XRP token, one of the largest cryptocurrencies by market cap.
Invesco Galaxy spot Bitcoin ETF joins BlackRock on DTCC site
The ticker for Invesco and Galaxy’s spot Bitcoin exchange-traded fund (ETF) — BTCO — has appeared on the Depository Trust and Clearing Corporation’s (DTCC) website, marking a step forward in the application process for the two asset managers. A ticker added to the list of “ETF Products” on the DTCC’s site is not a guarantee of future approval for that product. However, according to a DTCC spokesperson, it is standard practice to add securities to the NSCC security eligibility file “in preparation for the launch of a new ETF to the market.” Recently, BlackRock and 21Shares’ application for a similar product were added to the DTCC website as well.
Top Swiss bank launches Bitcoin and Ether trading with SEBA
Switzerland’s St.Galler Kantonalbank (SGKB), one of the largest banks in the country, is moving into cryptocurrency by introducing Bitcoin and Ether trading to its customers. The bank has partnered with the SEBA Bank to offer its clients digital asset custody and brokerage services. SGKB plans to expand its offerings to additional cryptocurrencies based on client demand. Founded back in 1868, St.Galler Kantonalbank is reportedly the fifth largest bank in Switzerland, having had a total of 53.6 billion Swiss francs ($58.9 billion) in assets under management at the end of 2022.
Jack Dorsey’s Block had $5.62B in revenue, $44M in Bitcoin profits in Q3
Jack Dorsey-led Block published its third-quarter earnings report on Nov. 2, revealing a profitable quarter and surpassing analyst expectations. The firm had $5.62 billion in revenue in the third quarter of 2023, boosted by solid revenue growth in Cash App and Square, with $44 million in profit on its Bitcoin holdings thanks to a price surge in recent months. Block generated a gross profit of $1.90 billion, up 21% year-over-year.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $34,634, Ether (ETH) at $1,829 and XRP at $0.61. The total market cap is at $1.29 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are THORChain (RUNE) at 39.73%, Arweave (AR) at 32.15%, and Oasis Network (ROSE) at 24.88%.
The top three altcoin losers of the week are Quant (QNT) at -7.34%, Pepe (PEPE) at -6.49%, and Mina (MINA) at -4.13%.
“We respect the jury’s decision. But we are very disappointed with the result. Mr. Bankman Fried maintains his innocence and will continue to vigorously fight the charges against him.”
“The Bitcoin Ordinal protocol is better designed for decentralization and security than the Ethereum NFT protocol. High-value NFTs will win on Bitcoin.”
Bitcoin to the moon! Top 5 BTC price predictions for 2024 and beyond
A lot can happen in Bitcoin within a short space of time, and with 2024 less than two months away, there is plenty of time for fresh BTC price volatility to take hold. Before the yearly candle close, some say BTC/USD will be higher than at present — to the tune of another 30%.
In a blog post in late October, Matrixport doubled down on a $45,000 year-end price target, which it initially revealed in January. It was based on a handful of in-house models, with Matrixport also successfully predicting Bitcoin’s October gains. “Bitcoin is breaking above the July $31,500 resistance level, showing that $45,000 is achievable by year-end,” it summarized.
For many, the halving is a watershed moment in every Bitcoin price cycle. In September, BitQuant stated that BTC/USD would surpass its current $69,000 peak before April 2024.
FUD of the Week
SafeMoon executive team charged with multiple fraud counts, arrests made
The United States Securities and Exchange Commission announced on Nov. 1 that it was charging SafeMoon and three of its executives with fraud and unregistered securities sales in connection with its SafeMoon Token. According to the SEC, SafeMoon executives Kyle Nagy, John Karony and Thomas Smith withdrew assets worth $200 million from the project and misappropriated investor funds. The Justice Department is charging the three with conspiracy to commit securities fraud, conspiracy to commit wire fraud and money laundering conspiracy.
Bitget, Floki teams accuse each other of manipulation after token listing
The teams behind the Floki protocol and Bitget crypto exchange have accused each other of market manipulation after the protocol’s token, TokenFi, was listed and delisted by Bitget. According to a social media post from the Floki team, Bitget listed the token before it was launched, referring to the Bitget listing as a “fake token.” In a blog post, Bitget claimed that the Floki team was “suspected of market manipulation by maliciously controlling the initial liquidity.”
Oyster Protocol founder gets 4 years jail for $5.5M tax evasion
Amir Elmaani, founder of the now-defunct Oyster Protocol, has been handed the maximum sentence of four years in prison for tax evasion. The United States Attorney’s Office said on Oct. 31 that Elmaani — also known by the alias “Bruno Block” — was sentenced to prison following his guilty plea where he admitted to secretly minting and selling Pearl tokens while not paying income tax on a swath of profits from the project. In addition to his four-year prison sentence, Elmaani was sentenced to one year of supervised release and was ordered to pay $5.5 million in restitution.
Crypto’s ‘pro-rioter’ glitch artist stirs controversy — Patrick Amadon, NFT Creator
It comes after it emerged the Labour peer – who has said he wishes he’d never met Epstein – had written him a 2003 birthday note in which he described him as his “best pal”.
According to reports in Bloomberg and The Sun, he also sent Epstein messages of support while he was being investigated for sex offences, telling him he was “following you closely and here whenever you need”.
Sky News has learned that the powerful Foreign Affairs Select Committee of MPs made a request to hear from Lord Mandelson after he was appointed by Sir Keir last year, but this was blocked by the Foreign Office.
Lord Mandelson‘s status as a member of the House of Lords means the committee cannot force him to appear before them. People overseas can also not be compelled to give evidence.
Committees have the power to summon people to give evidence, and find them in contempt of parliament if they do not comply.
Lord Mandelson’s failure to appear adds to the controversy around a lack of government transparency sparked by the decision to not let national security adviser Jonathan Powell give evidence to the Joint Committee on the National Security Strategy.
Conservative MP and FAC member Aphra Brandreth is the only person on the committee to publicly call for Lord Mandelson to give them evidence on the ambassador’s links to Epstein.
Sky News understands that others on the committee are keen for Lord Mandelson to speak to them but have decided to not go public. As the committee make-up mirrors that of parliament, most members are Labour MPs.
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Ms Brandreth said in a statement: “At a time of huge instability around the globe, it’s vital that the UK’s ambassador to the US is focused completely on his job
“As a member of the Foreign Affairs Committee I would welcome the opportunity to question Lord Mandelson on his ability to carry out his duties to the UK.”
She shared a letter written by fellow Tory MP and former Foreign Affairs Select Committee chair Alicia Kearns.
In the letter, Ms Kearns called on current chair Dame Emily Thornberry to summon Lord Mandelson, question him and put the concerns of MPs to him.
Ms Kearns also wants to know what questions Dame Emily has asked the Foreign Office since the appointment of Lord Mandelson, and to find out “how substantial” Lord Mandelson’s relationship with Epstein was.
Ms Kearns told Sky News: “Months and months have passed with no action from the chair of the Foreign Affairs Committee, instead there has been an unsettling silence from her on all things Mandelson.
“I would have summoned Mandelson long ago, it’s the chair’s duty to get the answers parliament deserves. It’s all too evident Thornberry has long been focused on her next role, not the one she’s been elected and paid to do.”
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So far, there has been no response from Dame Emily, who took part in a hustings for her campaign to be the next Labour deputy leader on Wednesday night.
In January, Dame Emily raised Lord Mandelson’s appointment with Foreign Office minister Stephen Doughty.
She said the appointment was “inspired” – before asking the minister and government to “allow Lord Mandelson the time to come before my Committee before he leaves for the United States”.
Mr Doughty said: “I am sure that we will consider any request that my right honourable friend makes in due course in the normal way in which we consider requests from her Committee.”
Labour’s deputy leadership contest is on the brink of becoming a two-horse race between Bridget Phillipson and Lucy Powell, as the other three candidates scramble for nominations.
The official tally from the Parliamentary Labour Party (PLP) on Wednesday night put Ms Phillipson, the education secretary, ahead with 116 nominations.
Ms Powell, the former Commons leader who was ousted in Sir Keir Starmer’s reshuffle last week, is behind with 77 – just three shy of the 80 needed to make it to the next round.
Bell Ribeiro-Addy, Paula Barker and Dame Emily Thornberry all had support from 15 or fewer MPs as of Wednesday evening, fuelling speculation they could follow in the footsteps of housing minister Alison McGovern and pull out.
Ms Barker, the MP for Liverpool Wavetree, told Sky News she was “genuinely undecided” and had a lot to consider.
Image: Education Secretary Bridget Phillipson kept her job in the recent reshuffle. Pic: PA
Ms Barker, a former trade union official, has challenged the government on Gaza and welfare cuts and is part of the newly formed soft-left “Mainstream group”.
Her allies are keen for her to stay in the race, with one telling Sky News she “outshone the others by miles” during an online hustings event for MPs, and would be a “real alternative for the membership”.
Her supporters are expected to throw their weight behind Ms Powell if she does drop out, with one saying of the Manchester Central MP: “She is closer to Andy Burnham, and she was just sacked, so those who dislike Morgan McSweeney [the prime minister’s chief of staff] I guess will get behind her.”
However, while describing her as “slightly more left” than Ms Phillipson, they said she is “hardly a socialist”.
Image: Lucy Powell was sacked as leader of the Commons last week. Pic: PA
Some MPs want to avoid a race between Ms Powell and Ms Phillipson, believing there is not much difference in what they offer, but others had more praise for the former, calling her performance at the hustings impressive.
One MP said: “Her pitch is that she’s been the shop steward of the parliamentary Labour Party (PLP) in government, but now she’s not in government she can dedicate herself to the role of deputy leader full time without a department to run. She wants to focus on defining our voter coalition and making sure we’re speaking to them.”
They added that Ms Phillipson might be too busy to fulfil the deputy leadership role, especially with SEND (special educational needs and disabilities) reform coming down the track “which could be a horror show”.
Ms Phillipson has been making the case to MPs about her experience fighting populism in her Houghton & Sunderland South seat in the North East, where Reform UK is on the rise.
Dr Jeevun Sandher said he was won over by the education secretary following her pitch at the hustings in which she also spoke about the cost of living crisis.
The MP for Loughborough told Sky News: “Bridget was strong, articulate, and very impressive. She was able to communicate the deep thought we need to govern well and win the next election.”
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2:07
What do unions want from Labour’s new deputy?
The deputy leadership race was triggered by the resignation of former deputy prime minister and housing secretary Angela Rayner after she admitted underpaying stamp duty on a flat.
The candidates need 80 backers by 5pm Thursday. As of Wednesday evening’s tally, 235 MPs had made their nominations out of Labour’s 398 MPs.
Ms McGovern pulled out on Wednesday afternoon, saying it was “clear that the momentum of this contest had shifted, and I am not going to progress to the next stage”.
The MP for Birkenhead was rumoured to be Number 10’s preference before it was clear Ms Phillipson – who she has since nominated – would enter the race.
Timeline for the race
Many Labour MPs are keen to see someone who would work constructively with the prime minister to avoid the party becoming more divided.
There are also calls for the deputy leader to be from the north to balance out the number of cabinet ministers who represent London seats – which both Dame Emily and Ms Riberio-Addy do.
If more than one candidate secures 80 nominations by Thursday evening, they will then need to gain backing from either three of Labour’s affiliate organisations, including two trade unions, or 5% of constituency parties.
That process will continue until 27 September, meaning a contested election threatens to overshadow the party’s annual conference that begins in Liverpool the next day.
The successful candidates will then appear on the ballot for a vote of all party members and affiliated party supporters, which will open on 8 October and close on 23 October at 12pm.
The winner will be announced on Saturday 25 October.
Labour’s deputy leadership contest is on the brink of becoming a two-horse race between Bridget Phillipson and Lucy Powell, as the other three candidates scramble for nominations.
The official tally from the Parliamentary Labour Party (PLP) on Wednesday night put Ms Phillipson, the education secretary, ahead with 116 nominations.
Ms Powell, the former Commons leader who was ousted in Sir Keir Starmer’s reshuffle last week, is behind with 77 – just three shy of the 80 needed to make it to the next round.
Bell Ribeiro-Addy, Paula Barker and Dame Emily Thornberry all had support from 15 or fewer MPs as of Wednesday evening, fuelling speculation they could follow in the footsteps of housing minister Alison McGovern and pull out.
Ms Barker, the MP for Liverpool Wavetree, told Sky News she was “genuinely undecided” and had a lot to consider.
Image: Education Secretary Bridget Phillipson kept her job in the recent reshuffle. Pic: PA
Ms Barker, a former trade union official, has challenged the government on Gaza and welfare cuts and is part of the newly formed soft-left “Mainstream group”.
Her allies are keen for her to stay in the race, with one telling Sky News she “outshone the others by miles” during an online hustings event for MPs, and would be a “real alternative for the membership”.
Her supporters are expected to throw their weight behind Ms Powell if she does drop out, with one saying of the Manchester Central MP: “She is closer to Andy Burnham, and she was just sacked, so those who dislike Morgan McSweeney [the prime minister’s chief of staff] I guess will get behind her.”
However, while describing her as “slightly more left” than Ms Phillipson, they said she is “hardly a socialist”.
Image: Lucy Powell was sacked as leader of the Commons last week. Pic: PA
Some MPs want to avoid a race between Ms Powell and Ms Phillipson, believing there is not much difference in what they offer, but others had more praise for the former, calling her performance at the hustings impressive.
One MP said: “Her pitch is that she’s been the shop steward of the parliamentary Labour Party (PLP) in government, but now she’s not in government she can dedicate herself to the role of deputy leader full time without a department to run. She wants to focus on defining our voter coalition and making sure we’re speaking to them.”
They added that Ms Phillipson might be too busy to fulfil the deputy leadership role, especially with SEND (special educational needs and disabilities) reform coming down the track “which could be a horror show”.
Ms Phillipson has been making the case to MPs about her experience fighting populism in her Houghton & Sunderland South seat in the North East, where Reform UK is on the rise.
Dr Jeevun Sandher said he was won over by the education secretary following her pitch at the hustings in which she also spoke about the cost of living crisis.
The MP for Loughborough told Sky News: “Bridget was strong, articulate, and very impressive. She was able to communicate the deep thought we need to govern well and win the next election.”
Please use Chrome browser for a more accessible video player
2:07
What do unions want from Labour’s new deputy?
The deputy leadership race was triggered by the resignation of former deputy prime minister and housing secretary Angela Rayner after she admitted underpaying stamp duty on a flat.
The candidates need 80 backers by 5pm Thursday. As of Wednesday evening’s tally, 235 MPs had made their nominations out of Labour’s 398 MPs.
Ms McGovern pulled out on Wednesday afternoon, saying it was “clear that the momentum of this contest had shifted, and I am not going to progress to the next stage”.
The MP for Birkenhead was rumoured to be Number 10’s preference before it was clear Ms Phillipson – who she has since nominated – would enter the race.
Timeline for the race
Many Labour MPs are keen to see someone who would work constructively with the prime minister to avoid the party becoming more divided.
There are also calls for the deputy leader to be from the north to balance out the number of cabinet ministers who represent London seats – which both Dame Emily and Ms Riberio-Addy do.
If more than one candidate secures 80 nominations by Thursday evening, they will then need to gain backing from either three of Labour’s affiliate organisations, including two trade unions, or 5% of constituency parties.
That process will continue until 27 September, meaning a contested election threatens to overshadow the party’s annual conference that begins in Liverpool the next day.
The successful candidates will then appear on the ballot for a vote of all party members and affiliated party supporters, which will open on 8 October and close on 23 October at 12pm.
The winner will be announced on Saturday 25 October.