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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Politics
UK joins US in strike on Houthi target in Yemen for first time since Donald Trump re-elected
The UK has joined US forces in attacking a Houthi target in Yemen for the first time since Donald Trump was re-elected.
The Ministry of Defence (MoD) confirmed the strikes took place on Tuesday as part of the government’s response to Houthi attacks on international shipping in the Red Sea and Gulf of Aden.
The ministry said careful intelligence analysis identified a cluster of buildings used by the Houthis to manufacture the sort of drones used to attack ships, located 15 miles south of the capital Sanaa.
RAF Typhoon FGR4s conducted strikes on several buildings using Paveway IV precision-guided bombs.
The planes had air refuelling support from Voyager tankers.
The ministry said the strike was conducted after dark to reduce the likelihood of civilians being in the area.
All the aircraft returned safely.
John Healey. Pic: Reuters
Defence Secretary John Healey said: “This government will always act in the interests of our national and economic security.
“Royal Air Force Typhoons have successfully conducted strikes against a Houthi military target in Yemen and all UK aircraft and personnel have returned safely to base.
“We conducted these strikes, supported by the US, to degrade Houthi capabilities and prevent further attacks against UK and international shipping.”
Read more from Sky News:
Kneecap’s Eden Project gig cancelled amid ‘kill MPs’ row
Israel releases medic detained after IDF attack on aid workers
Crush fly-tippers’ vans, government tells councils
Houthis a ‘persistent threat’ to ‘freedom of navigation’
Mr Healey said Houthi activities in the Red Sea are a “persistent threat” to “freedom of navigation”.
“A 55% drop in shipping through the Red Sea has already cost billions, fuelling regional instability and risking economic security for families in the UK,” he said.
“The government is steadfast in our commitment to reinforcing global stability and protecting British working people. I am proud of the dedication and professionalism shown by the service men and women involved in this operation.”
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
US intensifies strikes on Houthis
It was the first time UK forces have struck a target in Yemen since May last year, the ministry confirmed.
The US has intensified its strikes on the Iran-backed Houthis under Mr Trump’s presidency, after his re-election in November 2024.
The group began launching attacks on shipping routes in November 2023 saying they were in solidarity with Palestinians over Israel’s war with Hamas in Gaza.
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Houthi rebels allege US airstrike hit prison
The strike came after a Houthi-controlled TV channel claimed a US strike killed 68 people at a detention centre for African migrants in Yemen on Monday.
Six mayors are being elected in England, with most of the mayoralties last contested in 2021.
These include four combined authority mayors , otherwise known as metro mayors, as well as two city mayors.
Two of the mayors will take up new positions in the Hull and East Yorkshire, and Greater Lincolnshire combined authorities. The other mayoralties were all last contested in 2021.
Metro mayors
• Cambridgeshire and Peterborough
• Greater Lincolnshire
• Hull and East Yorkshire
• West of England
City mayors
• Doncaster
• North Tyneside
Polls closed on Thursday night. Greater Lincolnshire, West of England, and Doncaster are counting results overnight while the other areas will report results on Friday.
The map below shows which mayoral candidates have won in their area by political party.
All of these mayoralties will be elected under a first-past-the-post electoral system, which is also used for Westminster parliamentary elections.
See below for more detailed breakdowns of results for each race.
Metro mayors
There are four metro mayors being elected in combined authorities. These mayors are elected by voters from several different areas and counting will take place at local council level. Tables will be updated as each local area reports its result.
Cambridgeshire and Peterborough
First established in 2017, the combined authority covers six areas. These are Peterborough, Fenland, Huntingdonshire, East Cambridgeshire, South Cambridgeshire, and Cambridge local council areas.
Labour won the mayoralty from the Conservatives when it was last contested in 2021.
Greater Lincolnshire
This is a new mayoralty, being elected for the first time in 2025.
The combined authority covers nine areas. These are North Lincolnshire, North East Lincolnshire, Boston, Lincoln, East Lindsey, West Lindsey, North Kesteven, South Kesteven, and South Holland local council areas.
Hull and East Yorkshire
This is a new mayoralty, being elected for the first time in 2025.
The combined authority area covers both Hull City and East Riding of Yorkshire local council areas.
West of England
The combined authority covers three areas: Bristol City, South Gloucestershire, and Bath and North East Somerset local council areas. The authority was established in 2017.
Labour won the mayoralty from the Conservatives when it was last contested in 2021.
City mayors
There are two city mayors being elected, one for Doncaster and one for North Tyneside.
Labour’s Ros Jones has been the Mayor of Doncaster since 2013, and is running for re-election this year.
The mayor of North Tyneside has been held by Labour since 2013, though incumbent Nora Redfearn is not standing for re-election this year.
Paolo Ardoino, CEO of stablecoin issuer Tether, addressed criticism over the company’s decision not to seek registration under the European Union’s Markets in Crypto-Assets (MiCA) framework, arguing that the regulations were risky for stablecoins.
Speaking to Cointelegraph at the Token2049 conference in Dubai, Ardoino reiterated that Tether had no plans to apply for its US dollar-pegged stablecoin USDt — the largest by market capitalization — to be compliant under MiCA in European countries, potentially forcing exchanges to delist the stablecoin. He added that though crypto firms had to follow regulations, there was a “fear of compliance” among companies in the EU.
“[…] MiCA license is very dangerous when it comes to stablecoins, and I believe that is even more dangerous for the small, medium banking system in Europe,” said the Tether CEO, adding that banks in the region could “go belly up” in the next few years thanks to MiCA’s requirements, such as keeping 60% of stablecoins reserves in insured cash deposits in European banks. Ardoino added:
“I decided to not apply to the MiCA license because I need to protect the 400 million+ users that we have around the world. They are not as lucky as Europeans. I love Europe, but I think that unfortunately European Central Bank is more interested [in pushing] the digital euro as a way to control people and control how they spend their money.”
Related: Paolo Ardoino: Competitors and politicians intend to ‘kill Tether’
After years of planning and research, EU officials began to implement requirements under MiCA in December 2024. Tether, which is regulated and headquartered in El Salvador, is required to comply with MiCA regulatory requirements if offering products or services in EU member states.
Since the regulations went into effect, many crypto exchanges acted to ensure their platforms listed MiCA-compliant tokens. Kraken delisted 5 stablecoins, including USDt, and Crypto.com announced plans to delist 10 stablecoins as of January.
On nations establishing crypto reserves
Speaking on its intentions for operating in the United States, Ardoino said the country “would require a different type of product,” given the competition with local stablecoin issuers. He added that the US’s and other countries’ efforts to establish a Bitcoin (BTC) stockpile were “just inevitable.”
“In the medium to long term, the more Bitcoin education, the more companies will set the example […] then everyone else will follow,” said the Tether CEO. “It’s never too late to buy Bitcoin.”
Ardoino’s statements came the same day that Tether announced roughly $120 billion in exposure to US Treasurys as of the first quarter of 2025. As of May 1, USDt had a market capitalization of roughly $149 billion.
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