Sam Bankman-Fried convicted, PayPal faces SEC subpoena, and other news: Hodler’s Digest, Oct. 19 – Nov. 4
Top Stories This Week
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%.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
Read also
Most Memorable Quotations
“He [Sam Bankman-Fried] lied to get customers’ trust.”
Danielle Sassoon, U.S. assistant attorney
“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.”
Mark Cohen, attorney of Sam Bankman-Fried
“[Bitcoin] demand is going to increase, and supply is going to contract and this is fairly unprecedented in the history of Wall Street.”
Michael Saylor, CEO of MicroStrategy
“The Bitcoin Ordinal protocol is better designed for decentralization and security than the Ethereum NFT protocol. High-value NFTs will win on Bitcoin.”
Danny Yang, CEO of Metagood
“I don’t own any Bitcoin, to be frank, but I should.”
Stanley Druckenmiller, billionaire investor
“Fuck regulators.”
Sam Bankman-Fried, former CEO of FTX
Prediction of the Week
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
Digital disobedience is in all of us, says provocative glitch artist Patrick Amadon.
Slumdog billionaire: Incredible rags-to-riches tale of Polygon’s Sandeep Nailwal
Sandeep Nailwal’s life story is an incredible rags-to-riches tale that goes one better than Oscar-winning film “Slumdog Millionaire.”
Slumdog billionaire 2: ‘Top 10… brings no satisfaction’ says Polygon’s Sandeep Nailwal
Part 2 of our Sandeep Nailwal special tells how Polygon nearly died in 2020 but went on to be one of the biggest projects in the space.
Subscribe
The most engaging reads in blockchain. Delivered once a
week.
Daren Li is looking at a maximum of 20 years in prison after pleading guilty to his role in laundering crypto in a $73 million scam.
NHS league tables revealing failing NHS trusts and cancelled pay rises or dismissal for managers who don’t turn things around are to form part of the government’s plans to improve the health service.
Health Secretary Wes Streeting is confirming new measures he hopes will boost failing hospital trusts and encourage successful ones.
The changes form part of the Labour government’s strategy to reduce waiting lists “from 18 months to 18 weeks”.
Politics latest: ‘Eye-watering’ climate target announced by PM
Health and the state of the NHS were consistently among the most important issues for voters at this year’s general election – with Labour blaming the Conservatives for “breaking” it.
As health is a devolved area, any reforms proposed in Westminster would only apply to England.
Chief among Mr Streeting’s proposals is a “league table” for NHS trusts.
An announcement from the Department for Health and Social Care said: “NHS England will carry out a no-holds-barred sweeping review of NHS performance across the entire country, with providers to be placed into a league table.
“This will be made public and regularly updated to ensure leaders, policy-makers and patients know which improvements need to be prioritised.”
It also promises to replace “persistently failing managers” – with “turn around teams” being sent in to improve trusts running sizeable deficits or offering poor service to patients.
The government says “senior managers” who fail to make progress will not be eligible for pay rises.
There will be “financial implications” for more senior figures such as chief executives if their trust does not improve.
On the flip-side, those trusts that are deemed to be “high-performing” will get “greater freedom over funding and flexibility”.
Senior leaders at these trusts will also be “rewarded”.
The government says the current system is not incentivising trusts to run a budget surplus, as they cannot benefit from it.
Please use Chrome browser for a more accessible video player
NHS reform: ‘Be careful what you wish for’
Read more on the NHS:
Reform will not begin right away – Streeting
Govt ask for ideas to ‘help fix our NHS’
NHS must ‘reform or die’, warns PM
Mr Streeting said: “The budget showed this government prioritises the NHS, providing the investment needed to rebuild the health service.
“Today we are announcing the reforms to make sure every penny of extra investment is well spent and cuts waiting times for patients.
“There’ll be no more turning a blind eye to failure. We will drive the health service to improve, so patients get more out of it for what taxpayers put in.
“Our health service must attract top talent, be far more transparent to the public who pay for it, and run as efficiently as global businesses.
“With the combination of investment and reform, we will turn the NHS around and cut waiting times from 18 months to 18 weeks.”
Keep up with all the latest news from the UK and around the world by following Sky News
Concerns from health representatives
Amanda Pritchard, the chief executive of NHS England, said: “While NHS leaders welcome accountability, it is critical that responsibility comes with the necessary support and development.
“The extensive package of reforms, developed together with government, will empower all leaders working in the NHS and it will give them the tools they need to provide the best possible services for our patients.”
Further plans on how monitoring will be published by the start of the next financial year in April 2025, the government said.
Matthew Taylor, the chief executive of the NHS Confederation – a body that represents all NHS trusts – said healthcare leaders welcome the “government’s ambition”.
However, he said he was concerned league tables and reducing pay may “strip out” the nuance of what’s going on.
👉 Listen to Politics At Jack And Sam’s on your podcast app👈
Mr Taylor said: “NHS staff are doing their very best for patients under very challenging circumstances and we do not want them feeling like they are being named and shamed.
“League tables in themselves do not lead to improvement, trusts struggling with consistent performance issues – some of which reflect contextual issues such as underlying population heath and staff shortages – need to be identified and supported in order to recover.”
A Bloomberg report suggested Italian Prime Minister Giorgia Meloni could accept a proposal for a 28% tax hike on crypto rather than a 42% one.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports7 months agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Environment1 year agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway