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.
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A reference to China being an “enemy” of the UK was removed from key evidence for a collapsed spy trial in 2023 as it “did not reflect government policy” under the Conservatives at the time, according to the national security adviser.
In the letter published by parliament’s Joint Committee on National Security Strategy earlier on Friday, National Security Adviser (NSA) Jonathan Powell said Counter Terror Police and the Crown Prosecution Service were aware of the change made by Deputy National Security Adviser (DSNA) Matt Collins.
This would mean the CPS knew the “enemy” reference had been removed before charging the two suspects, according to Mr Powell.
In another letter published on Friday, the director of public prosecutions (DPP) Stephen Parkinson told the committee that it took DSNA Mr Collins more than a year to confirm to prosecutors he would not say China posed a threat to UK national security in court.
Politics latest: Farage reacts after Reform defeated by Plaid
The DPP said a High Court judge ruled in June last year that an “enemy” under law is a state which “presently poses an active threat to the UK’s national security”, prompting the CPS to ask the DNSA whether China fulfilled that criteria.
He added prosecutors did not believe there would be “any difficulty in obtaining evidence” from Mr Collins that China was a national security threat, but added: “This was a sticking point that could not be overcome.”
Mr Parkinson added that the DNSA’s “unwillingness” to describe China as an active or current threat was “fatal to the case” because Christopher Cash and Christopher Berry’s defence teams would have been entitled to call him as a witness.
The DPP added: “This factor is compounded by the fact that drafts of the first witness statement, reviewed by us in July 2025, showed that references to China being an ‘enemy’ or ‘possible enemy’ had been deleted.
“Those drafts would probably have been disclosable to the defence.”
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What do we know about the China spy case?
A final draft of Mr Collins’ statement was sent to then-prime minister Rishi Sunak in December 2023, Mr Powell’s letter said.
“Drafts of a statement provided to DNSA included the term ‘enemy’ but he removed this term from the final draft as it did not reflect government policy,” the letter reads.
Read more:
MI5 boss on threats from China
The three key questions about the China spy case that need to be answered
It comes amid a political row over the collapse of the prosecution of Christopher Berry and Christopher Cash last month, who were accused of conducting espionage for China.
Both individuals vehemently deny the claims.
Because the CPS was pursuing charges under the Official Secrets Act 1911, prosecutors would have had to show the defendants were acting for an “enemy”.
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China spy row: Witness statements explained
DPP Mr Parkinson has come under pressure to provide a fuller explanation for the abandonment of the case.
He has blamed insufficient evidence being provided by the government that Beijing represented a threat to the UK at the time of the alleged offences.
The Conservatives have accused Sir Keir Starmer of letting the case collapse, but Labour has said there was nothing more it could have done.
The current government has insisted ministers did not intervene in the case or attempt to make representations to ensure the strength of evidence, for fear of interfering with the course of justice.
Sir Keir Starmer met Chinese premier Xi Jingping in November 2024. Pic: PA
The DNSA and DPP will face questions from the parliamentary committee on Monday afternoon.
The current attorney general, Lord Hermer, and the chancellor of the duchy of Lancaster, Darren Jones, will be questioned on Wednesday.
The PM’s spokesman reiterated the government’s position that “what is relevant in a criminal case of this nature is the government’s position at the time of the alleged offences”.
Politics
Who is Lindsay Whittle? The man who stood unsuccessfully in Caerphilly 13 times, then won on the 14th try
Lindsay Whittle stood for election in Caerphilly 13 times since 1983 – and on the 14th attempt, he finally succeeded.
In the process, the 72-year-old local boy – nicknamed “Mr Caerphilly” – humiliated the Labour Party, which had held the Senedd seat since its creation in 1999 and the Westminster constituency for over a century.
Born in the miner’s hospital, Mr Whittle lived in a council house and grew up in the town, located to the north of Cardiff, that he now represents.
A lifelong Plaid Cymru activist, his interest in politics was first piqued in the 1960s. He said he even missed an O Level (GCSE) exam in the 1970s because he was out canvassing for the party.
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Watch Lindsay Whittle’s victory speech.
Mr Whittle was first elected in 1976 to represent the Penyrheol and Trecenydd ward on Rhymney Valley district council, and he was re-elected repeatedly until the council was abolished in 1996.
He then contested the Penyrheol ward on the new Caerphilly County Borough Council, created in 1995, and was elected to represent it seven times. He served as the council’s leader for two periods between 1999 and 2004, and has also served as Plaid Cymru’s group leader on the council since 2022.
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Plaid Cymru is ‘ready to lead Wales’, party leader Rhun ap Iorwerth told Sky News.
But, despite his success at the local level, Mr Whittle was only able to secure election to the then Welsh Assembly once in six attempts since its creation in 1999, becoming an MS on the South Wales East list 2011, before losing his seat in 2016.
In those five years in Cardiff, he was appointed Plaid Cymru’s spokesperson for Social Services, Children, and Equal Opportunities, and he was able to work on his key political interests of housing and local government, as well as combating homelessness.
Lindsay Whittle in front of the Caerphilly Castle after his victory. Pic: PA
Read more from Sky News:
Reform beaten by Plaid Cymru in Caerphilly by-election
Analysis: Farage nowhere to be seen as Reform loses by-election
Election by the people of his hometown of Caerphilly has always eluded him, however, having lost the 13 other elections for Westminster and the Senedd that he has stood in throughout a lifetime in Welsh politics.
But that all changed last night when he was elected with a majority of nearly 4,000 votes to take over from the late Hefin David, the beloved Labour representative to whom he paid tribute in his victory speech.
Lindsay Whittle speaking to Sky’s Jon Craig at the election night count in Caerphilly. Pic: PA
Speaking to our chief political correspondent Jon Craig as dawn broke over the town he was born in and now represents, Mr Whittle said: “I would need to be a poet to put into words how I genuinely feel about the honour that all the people of Caerphilly have bestowed upon me.
“Almost half of the people who went out to vote, just 2% short of half of the people, put their confidence in Lindsay Whittle and Plaid Cymru. I cannot tell you what an honour that is.”
He added: “Retirement is not for me. I’m not the sort of guy who relaxes on beaches. In fact, I don’t think I ever relax. It’s people. It’s people that make me carry on.”
If approved, the charter would allow the crypto exchange to offer federally regulated custody and trust services in the United States.
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