Sam Bankman-Fried takes the stand on FTX’s collapse
Sam “SBF” Bankman-Fried testified this week in his ongoing criminal trial in the Southern District of New York, denying any wrongdoing between FTX and Alameda Research while acknowledging making “big mistakes” during the companies’ explosive growth. Highlights of his testimony include denying directing his inner circle to make significant political donations in 2021, as well as claims that FTX’s terms of use covered transactions between Alameda and the crypto exchange. Additionally, Bankman-Fried testified that he requested additional hedging strategies for Alameda in 2021 and 2022, but they were never implemented. The trial is expected to conclude within the next few days.
‘Buy Bitcoin’ search queries on Google surge 826% in the UK
Google searches for “buy Bitcoin” have surged worldwide amid a major crypto rally, with searches in the United Kingdom growing by more than 800% in the last week. According to research from Cryptogambling.tv, the search term “buy Bitcoin” spiked a staggering 826% in the U.K. over the course of seven days. In the United States, data from Google Trends shows that searches for “should I buy Bitcoin now?” increased by more than 250%, while more niche searches, including “can I buy Bitcoin on Fidelity?” increased by over 3,100% in the last week. Zooming out further, the search term “is it a good time to buy Bitcoin?” saw a 110% gain worldwide over the last week.
US court issues mandate for Grayscale ruling, paving way for SEC to review spot Bitcoin ETF
The United States Court of Appeals has issued a mandate following a decision requiring Grayscale Investments’ application for a spot Bitcoin exchange-traded fund (ETF) to be reviewed by the Securities and Exchange Commission (SEC). In an Oct. 23 filing, the “formal mandate” of the court took effect, paving the way for the SEC to review its decision on Grayscale’s spot Bitcoin ETF. The mandate followed the court’s initial ruling on Aug. 29 and the SEC’s failure to present an appeal by Oct. 13. To date, the SEC has yet to approve a single spot crypto ETF for listing on U.S. exchanges but has given the green light to investment vehicles linked to Bitcoin and Ether futures.
Coinbase disputes SEC’s crypto authority in final bid to toss regulator’s suit
The U.S. Securities and Exchange Commission overstepped its authority when it classified Coinbase-listed cryptocurrencies as securities, the exchange has argued in its final bid to dismiss a lawsuit by the securities regulator. In an Oct. 24 filing in a New York District Court, Coinbase chastised the SEC, claiming its definition for what qualifies as a security was too wide, and contested that the cryptocurrencies the exchange lists are not under the regulator’s purview. The SEC sued Coinbase on June 6, claiming the exchange violated U.S. securities laws by listing several tokens it considers securities and not registering with the regulator.
Gemini sues Genesis over GBTC shares used as Earn collateral, now worth $1.6B
Cryptocurrency exchange Gemini filed a lawsuit against bankrupt crypto lender Genesis on Oct. 27. At issue is the fate of 62,086,586 shares of Grayscale Bitcoin Trust. They were used as collateral to secure loans made by 232,000 Gemini users to Genesis through the Gemini Earn Program. That collateral is currently worth close to $1.6 billion. According to the suit, Gemini has received $284.3 million from foreclosing on the collateral for the benefit of Earn users, but Genesis has disputed the action, preventing Gemini from distributing the proceeds. Genesis filed for bankruptcy in January. It had suspended withdrawals in November 2022, which impacted the Gemini Earn program.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $34,143, Ether (ETH) at $1,789 and XRP at $0.54. The total market cap is at $1.26 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Pepe (PEPE) at 72.08%, Mina (MINA) at 55.47% and FLOKI (FLOKI) at 53.33%.
The top three altcoin losers of the week are Bitcoin SV (BSV) at -10.27%, Toncoin (TON) -3.14% and Trust Wallet Token (TWT) at -0.82%.
“I should say, I am not a lawyer, I am just trying to answer based on my recollection. […] At the time [at] FTX, certain customers thought accounts would be sent to Alameda.”
“Without prejudging any one asset, the vast majority of crypto assets likely meet the investment contract test, making them subject to the securities laws.”
Gary Gensler, chair of U.S. Securities and Exchange Commission
“I do not believe there has been a single serious conversation regarding a settlement between Ripple […] and the SEC. The SEC is pissed and embarrassed and wants $770M worth of flesh.”
“He [Sam Bankman-Fried] thought he was going to take that money, and […] he would out-trade the market and put the money back and end up as a half-a-trillionaire, but it never works like that.”
Bitcoin beats S&P 500 in October as $40K BTC price predictions flow in
Bitcoin surfed $34,000 at the end of the week as attention turned to BTC price performance against macro assets. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding steady, preserving its early-week gains.
The largest cryptocurrency avoided significant volatility as the weekly and monthly closes — a key moment for the October uptrend — drew ever nearer.
“I think Bitcoin will hang around this range for some time,” popular pseudonymous trader Daan Crypto Trades told X subscribers in one of several posts on Oct. 27. “Roughly $33-35K is what I’m looking at as a range. Eyes on potential sweeps of any of these levels for a quick trade,” he wrote.
FUD of the Week
UK passes bill to enable authorities to seize Bitcoin used for crime
Lawmakers in the United Kingdom have passed legislation allowing authorities to seize and freeze cryptocurrencies like Bitcoin if used for illicit purposes. Introduced in September 2022, the passed legislation aims to expand authorities’ ability to crack down on the use of cryptocurrency in crimes like cybercrime, scams and drug trafficking. One of the provisions of the bill permits the recovery of crypto assets used in crimes without conviction, as some individuals may avoid conviction by remaining remote.
Scammers create Blockworks clone site to drain crypto wallets
Phishing scammers have cloned the websites of crypto media outlet Blockworks and Ethereum blockchain scanner Etherscan to trick unsuspecting readers into connecting their wallets to a crypto drainer. A fake Blockworks site displayed a fake “BREAKING” news report of a supposed multimillion-dollar “approvals exploit” on the decentralized exchange Uniswap and encouraged users to visit a fake Etherscan website to rescind approvals. The fake Uniswap news article was posted on Reddit across several popular subreddits.
Kraken to suspend trading for USDT, DAI, WBTC, WETH and WAXL in Canada
Kraken will suspend all transactions related to Tether, Dai, Wrapped Bitcoin, Wrapped Ether and Wrapped Axelar in Canada in November and December. The suspensions may not surprise many Canadian cryptocurrency users, as they come on the heels of several other notable exchanges taking similar actions throughout 2023. OKX ceased operations in Canada in June after Binance announced its intention to do so in May.
5,050 Bitcoin for $5 in 2009: Helsinki’s claim to crypto fame
Climate change, the crisis in the Middle East, the continuing war in Ukraine, combating global poverty.
All of these are critical issues for Britain and beyond; all of them up for discussions at the G20 summit in Rio de Janeiro this week, and all of them very much in limbo as the world awaits the arrival of president-elect Donald Trump to the White House.
Because while US President Joe Biden used Nato, the G7 and the G20, as forums to try to find consensus on some of the most pressing issues facing the West, his successor is likely to take a rather different approach. And that begs the question going into Rio 2024 about what can really be achieved in Mr Biden’s final act before the new show rolls into town.
On the flight over to Rio de Janeiro, our prime minister acted as a leader all too aware of it as he implored fellow leaders to “shore up support for Ukraine” even as the consensus around standing united against Vladimir Putin appears to be fracturing and the Russian president looks emboldened.
“We need to double down on shoring up our support for Ukraine and that’s top of my agenda for the G20,” he told us in the huddle on the plane. “There’s got to be full support for as long as it takes.”
But the election of Mr Trump to the White House is already shifting that narrative, with the incoming president clear he’s going to end the war. His new secretary of state previously voted against pouring more military aid into the embattled country.
Mr Trump has yet to say how he intends to end this war, but allies are already blinking. In recent days, German Chancellor Olaf Scholz has spoken with Mr Putin for the first time in two years to the dismay of the Ukrainian president Volodymyr Zelenskyy, who described the call as “opening Pandora’s Box”.
More on G20
Related Topics:
Please use Chrome browser for a more accessible video player
0:53
Ukraine anger over Putin-Scholz call
Sir Keir for his part says he has “no plans’ to speak to Putin as the 1,000th day of this conflict comes into view. But as unity amongst allies in isolating Mr Putin appears to be fracturing, the Russian leader is emboldened: on Saturday night Moscow launched one of the largest air attacks on Ukraine yet.
All of this is a reminder of the massive implications, be it on trade or global conflicts, that a Trump White House will have, and the world will be watching to see how much ‘Trump proofing’ allies look to embark upon in the coming days in Rio, be that trying to strike up economic ties with countries such as China or offering more practical help for Ukraine.
Advertisement
Both Sir Keir Starmer and French President Emmanuel Macron want to use this summit to persuade Mr Biden to allow Mr Zelenskyy to fire Storm Shadow missiles deep into Russian territory, having failed to win this argument with the president during their meeting at the White House in mid-September. Starmer has previously said it should be up to Ukraine how it uses weapons supplied by allies, as long as it remains within international law and for the purposes of defence.
“I am going to make shoring up support for Ukraine top of my agenda as we go into the G20,” said Sir Keir when asked about pressing for the use of such weaponry.
“I think it’s important we double down and give Ukraine the support that it needs for as long as it needs it. Obviously, I’m not going to get into discussing capabilities. You wouldn’t expect me to do that.”
But even as allies try to persuade the outgoing president on one issue where consensus is breaking down, the prospect of the newcomer is creating other waves on climate change and taxation too. Argentine President Javier Milei, a close ally of Trump, is threatening to block a joint communique set to be endorsed by G20 leaders over opposition to the taxation of the super-rich, while consensus on climate finance is also struggling to find common ground, according to the Financial Times.
Where the prime minister has found common ground with Mr Trump is on their respective domestic priorities: economic growth and border control.
So you will be hearing a lot from the prime minister over the next couple of days about tie-ups and talks with big economic partners – be that China, Brazil or Indonesia – as Starmer pursues his growth agenda, and tackling small boats, with the government drawing up plans for a series of “Italian-style” deals with several countries in an attempt to stop 1000s of illegal migrants from making the journey to the UK.
Italy’s Prime Minister Giorgia Meloni has struck financial deals with Tunisia and Libya to get them to do more to stop small-boat crossings, with some success and now the UK is in talks with Kurdistan, semi-autonomous region in Iraq, Turkey and Vietnam over “cooperation and security deals” which No 10 hope to sign next year.
The prime minister refused on Sunday to comment on specific deals as he stressed that tackling the small boats crisis would come from a combination of going after the smuggling gangs, trying to “stop people leaving in the first place” and returning illegal migrants where possible.
“I don’t think this is an area where we should just do one thing. We have got to do everything that we can,” he said, stressing that the government had returned 9,400 people since coming into office.
But with the British economy’s rebound from recession slowing down sharply in the third quarter of the year, and small boat crossings already at a record 32,947, the Prime Minister has a hugely difficult task.
Add the incoming Trump presidency into the mix and his challenges are likely to be greater still when it comes to crucial issues from Ukraine to climate change, and global trade. But what Trump has given him at least is greater clarity on what he needs to do to try to buck the political headwinds from the US to the continent, and win another term as a centre left incumbent.
The government has said the £3 cap would stay in place for another year, until December 2025.
But speaking on Sunday morning with Trevor Phillips, Transport Secretary Louise Haugh indicated the government was considering abolishing the cap beyond that point to explore alternative methods of funding.
She said: “We’ve stepped in with funding to protect it at £3 until 31 December next year. And in that period, we’ll look to establish more targeted approaches.
“We’ve, through evaluation of the £2 cap, found that the best approach is to target it at young people.
“So we want to look at ways in order to ensure more targeted ways, just like we do with the concessionary fare for older people, we think we can develop more targeted ways that will better encourage people onto buses.”
Pressed again on whether that meant the single £3 cap would be removed after December 2025, and that other bus reliefs could be put in place, she replied: “That’s what we’re considering at the moment as we go through this year, as we have that time whilst the £3 cap is in place – because the evaluation that we had showed, it hadn’t represented good value for money, the previous cap.”
Advertisement
It comes after Ms Haigh also confirmed that HS2 would not run to Crewe.
There had been reports that Labour could instead build an “HS2-light” railway between Birmingham and Crewe.
But Ms Haigh said that while HS2 would be built from Birmingham to Euston, the government was “not resurrecting the plans for HS2”.
“HS2 Limited isn’t getting any further work beyond what’s been commissioned to Euston,” she added.
Last month the prime minster confirmed the £2 bus fare cap would rise to £3 – branded the “bus tax” by critics – saying that the previous government had not planned for the funding to continue past the end of 2024.
He said that although the cap would increase to £3, it would stay at that price until the end of 2025 “because I know how important it is”.
Manchester mayor to keep £2 cap
The cap rise has been unpopular with some in Labour, with Greater Manchester mayor Andy Burnham opting to keep the £2 cap in place for the whole of 2025, despite the maximum that can be charged across England rising to £3.
The region’s mayor said he was able to cap single fares at £2 because of steps he took to regulate the system and bring buses back into public ownership from last year.
He also confirmed plans to introduce a contactless payment system, with a daily and weekly cap on prices, as Greater Manchester moves towards a London-style system for public transport pricing.
Under devolution, local authorities and metro mayors can fund their own schemes to keep fares down, as has been the case in Greater Manchester, London and West Yorkshire.