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Former FTX CEO Sam “SBF” Bankman-Fried’s public trial in a New York court ended with the jury finding him guilty on all seven charges on Nov. 3, including 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 Judge Lewis Kaplan on March 28, 2024. Government prosecutors will recommend a sentence, but Kaplan will have the final say.

Bankman-Fried’s crimes each carry a maximum sentence of five to 20 years in prison, with the wire fraud, wire fraud conspiracy and money laundering conspiracy charges carrying a maximum 20-year sentence. In a press conference outside the court, United States Attorney Damian Williams called Bankman-Fried’s crimes “a multibillion-dollar scheme designed to make him the king of crypto” and one of the biggest financial frauds in American history.

Meanwhile, the current claims pricing of FTX has reached a maximum of 57%, partly due to the valuation of artificial intelligence (AI) companies that the now-bankrupt crypto exchange previously invested in. FTX claims value has jumped to the highest spot when compared with other bankrupt crypto firms, such as Celsius with 35–40%, Genesis with about 50%, Alameda Research with 10% and Three Arrows Capital with only 7–9%.

FTX has also requested the bankruptcy court in Delaware allow it to sell certain key trust fund assets, including from crypto asset manager Grayscale Investments and custody service provider Bitwise, valued at around $744 million. The latest request by FTX debtors for the sale of trust assets comes after the court had earlier approved the liquidation of nearly $3.4 billion in crypto assets.

U.S. gets new AI safety standards

U.S. President Joe Biden issued an executive order establishing new standards for AI safety and security. Biden’s order stated it is building off previous actions taken, including AI safety commitments from 15 leading companies in the industry. The new standards have six primary points, along with plans for the ethical use of AI in the government, privacy practices for citizens and steps for protecting consumer privacy.

The first standard requires developers of the most powerful AI system to share safety test results and “critical information” with the government. Secondly, the National Institute of Standards and Technology will develop standardized tools and tests for ensuring AI’s safety, security and trustworthiness. The administration also aims to protect against the risk of AI usage to engineer “dangerous biological materials” through new biological synthesis screening standards.

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FCA explains how to comply with its crypto promotion rules

Rules for crypto asset promotion that came into force in the United Kingdom on Oct. 8 have led to some confusion, judging from the low level of compliance. The Financial Conduct Authority (FCA) responded with additional guidance for crypto firms to help them fall into line. The new 32-page guidance does not create new obligations for crypto firms, but the authors noted that it reflected a new “secondary international competitiveness objective” in addition to addressing its expectations for firms’ domestic behavior. The guidance section of the text emphasized key segments of the rules and other pertinent legal documents. The second section gives detailed answers to questions submitted during the consultation phase.

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Switzerland kicks off its wholesale CBDC pilot

The Swiss National Bank (SNB), six commercial banks and the SIX Swiss Exchange will work together to pilot the issuance of wholesale central bank digital currencies (CBDCs) in the nation, officially known as the Swiss franc wCBDC. The pilot project dedicated to wholesale CBDC, named Helvetia Phase III, will test the efficacy of a Swiss franc wCBDC in settling digital securities transactions. The pilot builds on the findings of the first two phases — Helvetia Phases I and II — conducted by the BIS Innovation Hub, the SNB and SIX. The Swiss wCBDC pilot project will be hosted on SDX and use the infrastructure of Swiss Interbank Clearing. According to the announcement, the pilot will run from December 2023 to June 2024.

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Zarah Sultana drops legal threat to reconcile with Jeremy Corbyn after row

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Zarah Sultana drops legal threat to reconcile with Jeremy Corbyn after row

Zarah Sultana has said she will not pursue legal action in a bid to repair the row that has engulfed her new political party with Jeremy Corbyn.

Ms Sultana, who co-leads “Your Party” with the former Labour leader, initially said she had hired defamation lawyers following a public spat in which she was accused of launching her own “unauthorised” membership drive.

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The former Labour MP, who now represents Coventry South as an independent, admitted she had launched the membership portal without her co-leader’s sign-off, but claimed she did so because she had been “sidelined” by a “sexist boys club”.

Her actions led to Mr Corbyn issuing his own statement, in which he urged members of the party – which has been given the interim name of Your Party – to ignore an “unauthorised” email urging them to become paid members and that legal advice was being taken.

In a fresh statement issued on Sunday evening, Ms Sultana acknowledged her supporters had been left feeling “demoralised” by the saga.

“For the sake of the party, and as an act of good faith, I will not be pursuing legal proceedings despite the baseless and unsubstantiated allegations against me,” she said.

“I know many people are feeling demoralised – I share that feeling. We find ourselves in a regrettable situation, but my motivation has always been to ensure the collective strength of our movement, put members first and build the genuinely democratic conference and socialist party we so urgently need.”

She added: “I am determined to reconcile and move forward. I am engaged in ongoing discussions with Jeremy, for whom, like all socialists of my generation, I have nothing but respect.”

Your Party got off to a shaky start when it was announced by Ms Sultana in early July, in a move that appeared to blindside Mr Corbyn.

The pair confirmed the launch a few weeks later, sharing a link to a website called Yourparty.co.uk.

It was later clarified that that was an interim name and that party members would decide a formal name at its inaugural conference in the autumn.

It is understood there are still expectations the conference will go ahead, despite the public fallout last week.

Read more:
Inside Jeremy Corbyn’s new party and the battle for leadership
What is happening at Your Party?

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What is happening at Your Party?

Despite her current attempts to repair the row, Your Party reported itself to the Information Commissioner’s Office last week after the “false membership” system was “unilaterally launched” by Ms Sultana – which it said was its duty under the law.

Questions remain over the handling of the data, which, as outlined in Your Party’s privacy notice, is owned by the Peace and Justice Project, spearheaded by the former Labour leader and independent activist Pamela Fitzpatrick, who are listed as the directors on Companies House.

The Coventry MP said in a statement after the row broke out that “at no point was members’ data misused or put at risk” and that the portal was “properly launched in accordance with the party’s roadmap”.

The ICO watchdog, which upholds information rights in the public interest, can issue fines up to £17.5m or 4% of global turnover, or pass fraud and negligence cases to police.

A spokesperson for the ICO told Sky News on Friday: “We can confirm we have received a report and are assessing the information provided.”

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First Chinese CNH stablecoin debuts as global race heats up

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First Chinese CNH stablecoin debuts as global race heats up

First Chinese CNH stablecoin debuts as global race heats up

Governments around the world are exploring and launching stablecoins to remain competitive against dollar-pegged digital fiat tokens.

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Sir Ed Davey brands Elon Musk a criminal and calls for his arrest for ‘allowing online harm to children’

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Sir Ed Davey brands Elon Musk a criminal and calls for his arrest for 'allowing online harm to children'

Sir Ed Davey has branded Elon Musk a criminal and called for him to be prosecuted for “allowing online harm to children” on his social media platform X.

The Lib Dem leader told Sky News’ Sunday Morning with Trevor Phillips the billionaire owner of X, formerly Twitter, is “inciting violence” and his social media platform is actively failing to protect children.

Sir Ed, speaking from the Lib Dem conference in Bournemouth, said Mr Musk could be prosecuted under the Online Safety Act, under which social media companies have a legal duty to protect children from harmful content and their directors are liable for criminal prosecution for breaching it.

Elon Musk. Pic: Reuters
Image:
Elon Musk. Pic: Reuters

Asked if he is calling Mr Musk a criminal, Sir Ed did not miss a beat as he said: “Yes.

“Not just because of the awful things he’s done in inciting violence, and, for example, he says a civil war in our country is inevitable, that our democratically elected government should be overthrown.

“They were bad enough. But on his platform, they’re examples of adverse, pushing people on self-harm, on grooming, even selling videos showing paedophile acts, of child sex abuse acts and I think he should be held to account for them, him personally and his business.

“Ofcom now has the powers under the Online Safety Act.”

More on Elon Musk

He said if Mr Musk comes to the UK, he should be arrested.

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Sir Ed Davey enters conference with marching band

Mr Musk was accused of inciting violence during a march organised by Tommy Robinson in London last week.

He told the protest via video link: “This is a message to the reasonable centre, the people who ordinarily wouldn’t get involved in politics, who just want to live their lives. They don’t want that, they’re quiet, they just go about their business.

“My message is to them: if this continues, that violence is going to come to you, you will have no choice. You’re in a fundamental situation here.

“Whether you choose violence or not, violence is coming to you. You either fight back or you die, that’s the truth, I think.”

Sir Ed Davey said Elon Musk should be arrested
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Sir Ed Davey said Elon Musk should be arrested

Sir Ed said it is “shocking” that Mr Musk removed some of X’s child safety teams when he took over Twitter in 2022 and accused him of just being “interested in his bank account”.

“I’m interested in the safety of our children, and it is quite wrong that his business puts on these adverts,” said the Lib Dem leader.

“It’s disgusting and I hope everybody will agree with me and the Liberal Democrats that we should take really strong action against him.”

After Mr Musk acquired Twitter, many of its child safety staff were laid off or resigned, and the platform’s trust and safety council was disbanded.

Child protection experts have accused Mr Musk of leading a “race to the bottom on safety”.

Elon Musk with Donald Trump in the Oval Office. Pic: AP
Image:
Elon Musk with Donald Trump in the Oval Office. Pic: AP

Ofcom, the UK’s independent media regulator, which has the power to prosecute directors of social media platforms under the Online Safety Act, has launched an investigation into X’s handling of child sexual abuse content.

This is not the first time Sir Ed has hit out at the world’s richest man, as he called for the US ambassador to be summoned in February “to ask why an incoming US official is suggesting the UK government should be overthrown”.

Mr Musk reacted by calling Sir Ed a “snivelling cretin”.

Sir Ed is expected to reiterate his call for Mr Musk’s arrest at his conference speech on Tuesday.

Pic: Reuters
Image:
Pic: Reuters

He will accuse Mr Musk of being motivated by “his own ego, power and wealth, rather than the rights and freedoms of the British people”.

The Lib Dems will also table a parliamentary motion summoning Mr Musk to the House of Commons “to be reprimanded for his actions”.

Sky News has approached X and Elon Musk for comment, but as of publication has received no response.

X maintains it has “zero tolerance for child sexual abuse material” and claims tackling those who exploit children is a “top priority”.

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