Monday 30 January 2023
Home / none / SBF pleads not guilty, crypto layoffs, and bank run on Silvergate: Hodler’s Digest, Jan. 1-7

SBF pleads not guilty, crypto layoffs, and bank run on Silvergate: Hodler’s Digest, Jan. 1-7

Hodler's Digest SBF pleads not guilty, crypto layoffs, and bank run on Silvergate: Hodler’s Digest, Jan. 1-7 by Editorial Staff 5 min January 7, 2023

Top Stories This Week

Sam Bankman-Fried enters not guilty plea for all counts in federal court

Former FTX CEO Sam Bankman-Fried (has pleaded not guilty to all charges related to the collapse of the crypto exchange, including wire fraud and securities fraud. He faces eight criminal counts, which could result in 115 years in prison if convicted. Furthemore, a petition has been filed by Bankman-Fried’s legal team asking a court to redact and not disclose certain information on individuals acting as sureties for his $250-million bond, alleging threats against his family.

US Feds put together ‘FTX task force’ to trace stolen user funds

A task force organized by the Southern District of New York has been formed to track and recover missing customer funds as well as investigate and prosecute the collapse of crypto exchange FTX. A similar effort had already been underway by FTX’s new management, which hired financial advisory company AlixPartners in December to conduct “asset-tracing” for missing digital assets.

Read also Features

Blockchain games take on the mainstream: Here’s how they can win

Features

Should crypto projects ever negotiate with hackers? Probably

SEC files objection to Binance.US’s plans to acquire Voyager Digital

The United States Securities and Exchange Commission (SEC) has filed a “limited objection” against Binance.US’s proposal to acquire the assets of bankrupt firm Voyager Digital. In its offer, Binance.US pledged $1 billion to purchase the assets, but the SEC raised concerns about the company’s ability to fund the deal, suggesting that Binance’s global unit would be required to support the acquisition.

Coinbase reaches $100M settlement with NY regulators

In response to violations of New York’s financial services and banking laws, crypto exchange Coinbase will pay a $50 million fine and invest $50 million to correct its compliance program. According to the financial regulator, the crypto exchange had many compliance “deficiencies” related to Anti-Money Laundering requirements, particularly regarding onboarding and transaction monitoring.

Community celebrates Bitcoin Genesis Day by sending BTC to the genesis block

The crypto community celebrated the 14th birthday of Bitcoin this week, with some sending BTC to the address containing the rewards for mining the genesis block — the first block of BTC to be mined. On Jan. 3, 2009, pseudonymous Bitcoin creator Satoshi Nakamoto mined the genesis block, which led to the minting of the first 50 BTC, paving the way for an entire industry to be developed.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $16,819, Ether (ETH) at $1,263 and XRP at $0.33. The total market cap is at $819.9 billion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Lido DAO (LDO) at 52.19%, Solana (SOL) at 37.44% and BitDAO (BIT) at 23.50%.
The top three altcoin losers of the week are Huobi Token (HT) at -9.32%, Chain (XCN) at -7.09% and Internet Computer (ICP) at -5.19%.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Read also Features

How to prepare for the end of the bull run, Part 1: Timing

Features

How do you DAO? Can DAOs scale and other burning questions

Most Memorable Quotations

“Bitcoin, specifically, has the potential to promote financial inclusion because of its decentralized nature, which makes it resistant to censorship and manipulation.”

Philip Karađorđević, prince of Serbia

“The problem for many in DC is that they equate FTX with the entire crypto industry.”

Ron Hammond, director of government relations at the Blockchain Association

“We see lots of problems in security because people don’t realize that this is their personal responsibility against their own assets. People are not ready for this.”

Dmitry Mishunin, CEO of HashEx

“We’re proud of our commitment to compliance, but we are also willing to acknowledge where we have fallen short, including by paying penalties & working hard to fix issues.”

Paul Grewal, chief legal officer at Coinbase

“In fact, crypto assets have become investment and financial instruments, so they need to be regulated on an equal basis with other financial and investment instruments.”

Suminto Sastrosuwito, director at Indonesia’s Ministry of Finance

“As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom but led them down a path of financial ruin.”

Letitia James, New York attorney general

Prediction of the Week

BTC price forms new support at $16.8K as Bitcoin lures ‘mega whales’

As 2023 begins, Bitcoin keeps experiencing a lack of volatility, leading to debates among traders over the timing of a breakout. The narrow trading range has been in place since the FTX saga in November.

Trading platform Trend Rider examined the one-week chart to flag $16,800 as the current 100-week point of control (PoC) — the price level generating the largest volume in the specific period.

“~16.8K is the new 100 Weekly POC for Bitcoin. In simple terms on the last 100 weeks this is the level where most volume has been traded, which is creating a potential bottom formation,” noted the crypto firm.

FUD of the Week

Mango Markets exploiter Avraham Eisenberg ordered into detention pending trial

The United States District Court in Puerto Rico has issued an order of detention to Mango Markets exploiter Avraham Eisenberg. As per court records, Eisenberg’s release is not subject to any condition or combination of conditions that would guarantee his appearance. With the decision, Eisenberg will remain in custody until the case is finished or released under a new bail hearing.

Silvergate sold assets at loss and cut staff to cover $8.1B in withdrawals

The collapse of FTX triggered a run on Silvergate, forcing the bank to sell assets at a steep loss to cover some $8.1 billion in withdrawals. In addition, about 200 employees at the bank were laid off, representing 40% of its staff. The bank has been under scrutiny from United States lawmakers because of its ties to FTX and Alameda Research.

Crypto lender Genesis lays off 30% more staff

In its second round of layoffs in six months, Genesis Global Trading has reportedly cut 30% of its workforce. The crypto lending platform halted withdrawals and suspended new loan originations in November, citing “unprecedented market turmoil.” In another headline on headcount reduction, crypto exchange Huobi announced plans to lay off 20% of its staff as part of its ongoing restructuring following Justin Sun’s acquisition of the company.

Best Cointelegraph Features

The best (and worst) stories from 3 years of Cointelegraph Magazine

We combed through 660 stories from the past three years of Cointelegraph Magazine to bring you the very cream of the crop.

Asia Express: China’s NFT market, Moutai metaverse popular but buggy…

The new national NFT market in China, 1 million users flock to Moutai distillery’s metaverse in just two days, and Final Fantasy developer Square Enix goes all in on blockchain games.

How time-weighted average price can reduce the market impact of large trades

Time-weighted average price is an algorithmic trading strategy that aims to reduce price volatility and improve liquidity during the trading process.

Subscribe The most engaging reads in blockchain. Delivered once a week. Subscribe to Magazine by Cointelegraph Newsletter.

Editorial Staff

Cointelegraph Magazine writers and reporters contributed to this article. Read also Hodler's Digest

Putin gives Snowden citizenship, Interpol elicits help in Do Kwon search and FTX US buys Voyager: Hodler’s Digest, Sept. 25-Oct. 1

by Editorial Staff 6 min October 1, 2022 6 Questions for…

6 Questions for Andrew Levine of Koinos Group

by Editorial Staff 1 min May 29, 2022 Most popular Features

Toss in your job and make $300K working for a DAO? Here’s how

byNataliya Ilyushina September 22, 2022 Features

How to prepare for the end of the bull run, Part 1: Timing

byAndrew Fenton 10 min September 3, 2021 Features

WTF happened in 1971 (and why the f**k it matters so much right now)

byAndrew Fenton 15 min September 24, 2020 Features

Sell or hodl? How to prepare for the end of the bull run, Part 2

byAndrew Fenton 10 min September 8, 2021 Journeys

Child’s play: Gajesh Naik, 13, manages a fortune in DeFi

byElias Ahonen 10 min July 2, 2021Original Article

About Jude Savage

Check Also

Solana price rally risks exhaustion after SOL’s 120% pump in two weeks

Solana (SOL) price is up an impressive 60% since the new year, partially boosted by hype surrounding meme cryptocurrency Bonk (BONK). However, the SOL/USD pair now shows signs of exhaustion, raising anticipations that the token may see a short-term correction in the coming days. Solana turns overboughtSolana is one of the best performing cryptocurrencies so far in 2023 after being one of the biggest losers in 2022. On Jan. 9, SOL's price jumped to as high as $19.50, or around 120% gains in a recovery rally after sliding below $8 on Dec. 29, 2022. But the price spik also turned Solana into an overbought asset, per its daily relative strength index (RSI) reading above 70, as shown below. SOL/USD daily price chart. Source: TradingViewTraditional investors typically see an overbought RSI as a potential sell signal, given the indicator has historically coincided with a period of buyer exhaustion. As a result, SOL's price could enter a correction or a sideways consolidation stag..

Leave a Reply

Your email address will not be published. Required fields are marked *