According to a local report, the Japan-based crypto exchange Bitflyer has acquired the failed Japanese unit of FTX. The report indicates that arrangements are currently underway to take over the business. Bitflyer Acquires Bankrupt FTX Japan, Local Report Claims On June 20, 2024, NHK reported that Japan’s Bitflyer acquired the now-defunct Japanese unit of FTX. […]
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Only 8 Altcoins Have Broken ATH Against Bitcoin Since FTX’s Collapse – Analyst Weighs In
During this bull cycle, the crypto market has been surfing off Bitcoin’s crest and enjoying the bullish momentum. However, investors hope for a seismic explosion to impulse Altcoins to new highs.
As the crypto industry awaits, online reports revealed that, since FTX’s fall, only eight altcoins have hit a new all-time high (ATH) against Bitcoin. A crypto analyst shared his thoughts on the matter.
Altcoins Underperforming Against Bitcoin This Cycle
On Friday, Crypto analyst Miles Deutscher shared an interesting fact about the crypto market. Since November 2022, just eight altcoins have broken their previous ATH against the flagship cryptocurrency.
To achieve this feat, tokens include Render (RNDR), Tellor (TRB), Injective (INJ), Astar (ASTR), SSV Network (SSV), SingularityNET (AGIX), True Wallet Token (TWT), and Binance Coin (BNB).
It’s worth noting that RNDR was the latest one to accomplish this on March 11 and that the list only contains altcoins launched before FTX’s collapse.
Deutscher explained that despite his initial shock, the news made sense to him and highlighted some takeaways based on the singularities of this run.
First, the analyst considers that asset selection dynamics changed from previous cycles. Investors have been “punished” for being overexposed to certain sectors like L2 and gaming and “rewarded” for participating in others like Memecoins and AI.
In contrast, in the last cycle, “you could basically bet on anything and beat $BTC.” According to the analyst, the market will likely continue experiencing specific sector outperformance despite the retail liquidity injection.
He also explained that “crypto is an attention economy,” and money will flow where attention is. As a result, even the projects with the best technology won’t perform if there isn’t an exciting reason to buy.
Deutscher’s second takeaway highlights the market’s current ATH dilution. As he points out, thousands of new products are being launched daily, and “low float/high FDV VC coins are launching in the billions.” These launches are seemingly outpacing the new liquidity, resulting in Altcoins struggling with performance.
More Room To Catch Up
The analyst’s third point explains that the bull run has been led by Bitcoin and spot BTC exchange-traded funds (ETH). Based on this, he considers it unsurprising that altcoins have “hardly pumped” so far.
Various crypto analysts and experts share this opinion. Alex Krüger previously stated that the cycle has been “almost entirely” driven by the Bitcoin ETFs’ momentum.
Deutscher sees Altcoins’ underperformance as a bullish signal since Bitcoin’s dominance has been instrumental in previous cycles. To him, this performance allows “more room to play catch up” and could drive altcoins to unseen highs.
The analyst believes the market needs another catalyst for a true Altcoins season. Despite this, he highlights that many investors have had a record Q1 “even in mildly bullish conditions for most alts.”
Ultimately, Deutscher considers there is still room to make big profits this cycle “even without the face-melting altseason we all crave.”
Despite FTX’s Collapse, FTT’s $535M Market Cap Highlights Crypto Absurdity
Ten days ago, the FTX estate overseeing the bankrupt company’s proceedings informed customers they would receive more than 100% repayment. Following this announcement, the exchange token FTT from the defunct trading platform rose above per unit. Astonishingly, despite being tied to a failed crypto exchange, this token still holds a market valuation of 5 […]
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New Research Paper Sheds Light on Alleged Conflicts of Interest in FTX’s Chapter 11 Filing
A recent research paper on SSRN by legal scholars scrutinizes the ethical quandaries and potential conflicts of interest surrounding Sullivan & Cromwell LLP’s involvement in FTX’s Chapter 11 bankruptcy filing. Study Highlights Legal Ethics From FTX Bankruptcy Proceedings The SSRN research paper entitled “Conflicting Public and Private Interests in Chapter 11” meticulously explores the controversial […]
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DOJ Halts Second Trial Against FTX’s Bankman Fried, Citing Sufficiency of Initial Evidence and ‘Public Interest’
On Dec. 29, 2023, past 6 p.m. Eastern Time (ET), the Department of Justice (DOJ) conveyed in a letter to Judge Lewis Kaplan its decision to not move forward with a subsequent trial against Sam Bankman-Fried, the ex-CEO of FTX.
FTX’s Bankman Fried Avoids Second Trial
According to several reports on Friday evening, prosecutors have decided against pursuing a second trial against Sam Bankman-Fried (SBF). Matthew Russell Lee of the Inner City Press disclosed the update on X, posting a snapshot of the DOJ’s letter and also distributing it on his Patreon.
“So no evidence and cross examination about the campaign finance and China bribe counts, no getting to the bottom of who took the money,” Russell Lee wrote on Friday. “It is known that officials in the Bahamas, whose request to drop these charges DOJ cited in severing them, took SBF’s and FTX customers’ money.”
Following the announcement, the X user known as ‘amuse’ weighed in on the development. “Shock: SBF won’t force Biden to prosecute him for making illegal campaign contributions to Democrats,” amuse said. Another individual wrote, “dropping the campaign finance and China bribe counts, raises questions about who ultimately benefited from these financial transactions.”
The letter from the U.S. government clarifies that “much of the evidence that would be offered in a second trial was already offered in the first trial and can be considered by the court at the defendant’s March 2024 sentencing.” The DOJ pointed to the “practical reality” and the “strong public interest in a prompt resolution of this matter” as the rationale behind its decision.
SBF is confronting the likelihood of an extensive incarceration period, having been found guilty on numerous counts of fraud and money laundering. He may receive up to 110 years if the judge imposes the harshest sentences consecutively. The court has set March 28, 2024, for SBF’s sentencing.
What do you think about the DOJ dropping the second trial against SBF? Share your thoughts and opinions about this subject in the comments section below.
FTX’s FTT Token Leads Market Gains With 55% Rally, What’s Driving It?
The utility token of the defunct crypto exchange FTX, FTT is one of the top gainers in the last few days, rising 55% in just 48 hours alone. This has led to speculations as to what may be driving the token’s rally. One of them relates to a recent event in the crypto industry.
FTT Token’s Recent Rally Propelled By Binance News
In a post on its X (formerly Twitter) platform, the market intelligence platform Santiment noted that the second rally for FTT came after the Binance news. The world’s largest crypto exchange and its former CEO Changpeng “CZ” Zhao had both pleaded to criminal charges and agreed to a settlement of over billion in fines.
As to the correlation between both events, Binance and FTX have always been closely knitted in several regards. For one, CZ, in particular, has sometimes been credited for being responsible for FTX’s collapse. Prior to the bank run on FTX, the former executive had made a tweet about his company liquidating their FTT holdings.
As such, it is believed that Binance, going through this difficult phase, comes off as bullish for the FTT token because of the animosity that the FTX and Binance ecosystem share. Interestingly, while FTT has continued to rally, Binance’s BNB has suffered an inverse fate. BNB is down by over 6% in the last seven days, according to data from CoinMarketCap.
Sam Bankman-Fried’s Conviction Also Contributed
It is worth mentioning that the FTT rally didn’t just kickstart on the back of the Binance news. FTT’s market value is reported to be about 255% up against Bitcoin in the past 3 weeks. This resurgence began just after the 10 largest wallets began accumulating, with .8 million worth of FTT bought by these whales since November 3.
Interestingly, November 3 happens to be a day after FTX’s former CEO Sam Bankman-Fried (SBF), was convicted. The FTX founder was convicted of all seven charges leveled against him. Going by this, it would seem that his conviction was conceived as bullish for these whales who decided to double down on their FTT holdings.
Another factor that might also be contributing to the token’s resurgence is the talks about FTX making a comeback. The defunct crypto exchange is reported to have suitors who are interested in rebooting it. The Chair of the Securities and Exchange Commission (SEC), Gary Gensler, had also noted that it was a possibility as far as the rules and guidelines are abided by.
At the time of writing, FTT is currently trading at around .50, up over 21% in the last 24 hours and up by over 336% in the past month, according to data from CoinMarketCap.
From Airbnb to Bahamas Elite — Bankman-Fried Testifies About FTX’s Operations and Alameda
Sam Bankman-Fried took the stand in his fraud trial on Friday, October 27, 2023, and was questioned by his lawyer about the operations of FTX and its relationship with affiliated crypto trading firm Alameda Research.
Sam Bankman-Fried’s Trial Testimony Day 2
On Friday, Sam Bankman-Fried stated that FTX was “primarily a margin exchange” that allowed trading similar to a mortgage, with users borrowing funds to trade larger positions. He also discussed FTX’s risk management systems, its handling of Alameda’s accounts, and his responsibilities as CEO. The courtroom testimony was broadcast on X by the legal and investigative journalist Matthew Russell Lee from the Inner City Press.
Bankman-Fried testified that he started Alameda Research in 2017 to trade cryptocurrency arbitrage after previously working at Jane Street Capital. He said Alameda operated initially out of a rented Airbnb in Berkeley, California with a small staff including Gary Wang and Caroline Ellison. Bankman-Fried stated that he limited his own salary to 0,000 per year but that the firm was profitable, making “50 to 100 percent profit, annualized.”
After moving to Hong Kong, Bankman-Fried said they founded the FTX exchange and brought on more staff like Nishad Singh from Facebook. He stated that Alameda was a market maker for FTX, providing liquidity to the exchange. Bankman-Fried discussed risk management systems put in place, including a “risk waterfall” to cover negative account balances. “If an account went negative, we’d start selling off – but if late, we had backstop liquidity,” he stated.
Bankman-Fried admitted to concerns about erroneous liquidations impacting Alameda’s accounts. “I told Gary, we have to stop such liquidations of Alameda’s account. They told me they’d done it. Now I know it was the ‘Allow Negative,’” he testified. He also discussed increasing Alameda’s credit line to FTX to billions of dollars based on conversations with Wang and Singh.
The defendant stressed that he delegated leadership of Alameda to Ellison and Sam Trabucco as he focused more on FTX. However, he stayed involved in ventures and had access to Alameda’s systems. “Alameda’s Pointer pages…were on my auto-open,” Bankman-Fried stated. He also discussed measures he says were taken to avoid market manipulation and provide transparency to FTX users.
The ex-FTX CEO said he started FTX in the Bahamas due to friendlier regulations, lived with nine other employees, and delegated little as his public profile grew. Bankman-Fried admitted he had no marketing background but thought “brand marketing would be better” than digital ads. He decided to advertise at stadiums since their names were well-known. “I did not want FTX to be known as the Kansas City Royals of crypto exchanges,” he quipped.
The defendant also detailed his venture investments in cryptocurrency projects, political donations, and lobbying efforts. He said he wanted to “impact the world” through policies on issues like pandemic prevention. Bankman-Fried confirmed using encrypted messaging apps like Signal at FTX. When asked about retaining records, he responded that “some had to be kept, some should be not kept, and then those in the middle.”
The Unraveling of Alameda
In May 2022, Bankman-Fried observed a significant drop in Alameda’s net asset value, falling from billion to billion by June. He discussed hedging strategies with Ellison, aiming to mitigate potential losses. Bankman-Fried communicated these concerns and strategies to key personnel. Despite suggesting a billion hedge to Alameda, he claims the firm did not implement this strategy.
Ellison allegedly approached Bankman-Fried, expressing her concerns that Alameda was on the brink of bankruptcy. Bankman-Fried insists he was taken aback, having not anticipated the severity of the situation. Ellison appeared nervous as she delivered this news, Bankman-Fried argued in court. This revelation prompted him to postpone a planned trip to Washington, D.C., where he was set to discuss crypto legislation with senators.
While dealing with Alameda’s financial instability, Bankman-Fried then claimed to have learned of an billion bug in the system. He insists that he instructed his team, specifically Nishad and Adam Yedidia, to rectify the issue and strengthen the underlying system to prevent future occurrences. Despite not recalling specific discussions about Alameda’s liabilities, Bankman-Fried took measures to address the situation.
Alameda reportedly proceeded to repay approximately billion in loans, and Bankman-Fried engaged in discussions with Blockfi about the situation. Additionally, Bankman-Fried had conversations with Yedidia about creating a “bulletproof” plan, though he could not recall the specifics of the location or content of this discussion.
In August 2022, Bankman-Fried had discussions with Singh about the Korean account and potential hedging strategies with Ellison. He contemplated shutting down Alameda, questioning if the right management was in place. Bankman-Fried also said he expressed concerns about the marketing team and hesitated to approve new marketing initiatives, though he acknowledged the success of some initiatives, like the MLB umpire patch.
As the testimony reached a natural breaking point, discussions turned to the schedule for the remainder of the trial. The jurors were dismissed until Monday, and the parties discussed the schedules for closing arguments, the charge conference, and the potential conclusion of the trial.
What do you think about Sam Bankman-Fried’s testimony on Friday? Share your thoughts and opinions about this subject in the comments section below.
Ex-General Counsel Sheds Light on FTX’s $7B Gap in Bankman-Fried Fraud Trial
FTX’s former general counsel Can Sun testified Thursday in federal court that he was shocked to learn FTX founder Sam Bankman-Fried (SBF) had secretly transferred billions in customer funds to his hedge fund Alameda Research. Sun told prosecutors he resigned the day after realizing the scope of customer money siphoned, following spreadsheets showing billion was missing.
‘Funds Had Been Misappropriated,’ Former FTX Lawyer Says
Can Sun, former general counsel of the failed crypto exchange FTX, took the stand Thursday in Sam Bankman-Fried‘s criminal fraud trial. Sun told federal prosecutors he was unaware FTX had secretly transferred customer funds to Bankman-Fried’s trading firm Alameda Research.
“I was shocked. There were billion missing,” testified Sun about learning the extent of fraudulent transfers. Prosecutors displayed FTX spreadsheets to Sun, who said he concluded “funds had been misappropriated.” Sun’s testimony was published by Matthew Russell Lee from the Inner City Press.
Sun outlined resigning as general counsel the day after his revelation, despite joining FTX from the law firm Fenwick & West. Sun claimed he approached SBF regarding the concerns, yet the response from the FTX leader was notably muted.
“I expected a bigger response. But all [SBF] said was, Got it. He didn’t seem surprised,” Sun remarked about Bankman-Fried’s calm reaction.
Sun recalled SBF asking him to provide a “legal justification” for the missing billions after a private equity firm inquired. “No. He did not tell me anything,” answered Sun when asked if SBF explained the transfers.
Under cross-examination, SBF’s attorney Mark Cohen discussed Sun’s FTX employment contract showing .5 million in loans and bonuses from Alameda Research. Questioned if connected, Sun stated, “Well they were both about my employment.”
Sun conceded to signing a non-prosecution agreement with prosecutors requiring truthful testimony. “You could be prosecuted if you don’t tell the truth?” Cohen inquired. Sun responded with a succinct “yes.” SBF’s attorney also pressed Sun on whether encrypted messaging apps were used by the legal department.
Sun’s testimony follows former FTX and Alameda executives Caroline Ellison, Gary Wang and Nishad Singh cooperating with prosecutors after pleading guilty. Bankman-Fried potentially faces over 100 years in prison if convicted of fraud and conspiracy charges, for which he has pleaded not guilty.
What do you think about the testimony from Sun and the billion missing? Share your thoughts and opinions about this subject in the comments section below.
FTX’s FTT Price Skyrockets 20%: Here’s Why the Rally Has Just Begun
The FTT price has been challenging gravity and the overall trend in the crypto market for the past two weeks. A recent report hints at a potential bullish continuation based on this scenario and to the benefit of the FTX creditors.
As of this writing, the FTT price trades at .20, with sideways movement in the last 24 hours. The token recorded a 19% profit in the previous two weeks, while the last 30 days show a 15% increase. In the meantime, major cryptocurrencies have seen half of this price action over the same period.
FTT Price On The Verge Of Massive Rally?
The surge in the FTT price is supported by the current negotiations between Artificial Intelligence (AI) company Anthropic and the big tech sector. As our sister website Bitcoinist reported, the company received a .5 billion capital injection from Amazon.
The big tech giant committed to increasing their investment by up to billion via Amazon Web Services (AWS). The partners will work to develop AI solutions to compete with Google, Microsoft, Nvidia, and others.
The AI company received support from failed crypto exchange FTX before its collapse in 2022. In that sense, if Anthropic can secure support from other big tech companies, the initial investment made by FTX will increase, allowing the new management to count on more assets and potentially repay creditors.
A recent report from the Information claims that Anthropic is exploring further partnerships following its Amazon deal. The OpenAI competitor could receive support from Google. The big tech giant already bought a 10% stake in the startup at the same time as FTX.
If this deal materializes, the company could increase its valuation from billion to over to billion. Thus, FTX’s initial investment will increase by a significant amount.
The negotiations between Anthropic and its potential partners have directly impacted the FTT price. The current manager has publicly emphasized his intention to re-launch the trading venue to repay its creditors.
A successful sale of their stake in Anthropic could benefit FTX’s current management and give them enough capital to succeed. If this scenario materializes, the company’s native token is bound to extend its recent run and could potentially reclaim previously lost territory.
The FTT price reached an all-time high above , meaning it has much room to grow if the company relaunches. Any news related to Anthropic or an FTX’s relaunch will positively affect the token.
Cover image from Unsplash, chart from Tradingview
Coinbase’s Legal Expert Outlines What To Expect In FTX’s Sam Bankman-Fried Jury Selection
Coinbase’s Chief Legal Officer (CLO) Paul Grewal has weighed in on what to expect in the jury selection in the trial of the former CEO of the defunct crypto exchange FTX, Sam Bankman-Fried (SBF), which is set to take place on October 3.
FTX’s Sam Bankman-Fried Jury Selection Should Be Quick
Grewal noted that the voir dire proceedings have generally improved over time, as in the past, the process could drag on for days. As such, he expects Sam Bankman-Fried’s jury selection to “move quick” as the court while trying to ensure a fair trial, also ensures not to waste the time of prospective jurors.
The jury selection for SBF’s trial is expected to last just a day (October 3) as, according to the trial calendar, the trial is set to officially commence on October 4, with the prosecution set to open its case on that day.
As part of the voir dire proceedings, both parties will question the potential jurors to determine their competency and identify any bias that could influence their decision. However, Grewal doesn’t expect Judge Lewis Kaplan, the judge in charge of Sam Bankman-Fried’s case, to be a mere bystander as he noted that federal judges “exercise a much hand over questioning” than their state counterparts.
According to him, these judges don’t just “hand over” the process to the lawyers because they understand that both parties aren’t looking for a fair jury but one that can help them win.
It is worth mentioning that Grewal has judicial experience as he was once a US magistrate judge for the United States District Court for the Northern District of California. During his time as a judge, he picked 35 juries, although they were in civil matters, unlike this, which is a criminal one.
The Jury And Its Composition
Sam Bankman-Fried’s jury is expected to comprise 12 jurors from all walks of life. They will be required to give a verdict on each of the defendant’s charges (SBF is being charged with seven counts of fraud-related charges). This verdict will be unanimous, with all jurors participating in it.
As regards the jury composition, Grewal noted that it was “critical to a fair outcome.” However, he stated that prosecutors prefer their case to depend on “damning evidence” rather than the juror makeup. A plausible reason could be that certain biases could exist depending on who the jury consists of, unlike damning evidence that can hardly be refuted.
The legal expert seems to be one of those foreseeing a conviction, as he added that there was no shortage of “damning evidence in this case” as Sam Bankman-Fried faces a statutory maximum sentence of 110 years if found guilty of all charges.