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

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Top News This Week Sam Bankman-Fried pleads not guilty to all counts in federal court

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

The US Federal Government has set up an FTX task force to track down 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 the FTX crypto exchange. A similar effort had already been undertaken by the new management of FTX, which hired the financial advisory firm AlixPartners in December to carry out the asset search for the missing digital assets.

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SEC Files Objection to Binance.US Plan to Acquire Voyager Digital

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

Coinbase reaches $100 million settlement with New York 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 fix its compliance program. According to the financial regulator, the crypto exchange had numerous compliance shortcomings related to anti-money laundering requirements, particularly with regard to transaction integration and monitoring.

Community celebrates Bitcoin Genesis Day by sending BTC to genesis block

The crypto community celebrated Bitcoin’s 14th anniversary 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 January 3, 2009, pseudonymous Bitcoin creator Satoshi Nakamoto mined the genesis block, which led to the first 50 BTC minting, paving the way for the development of an entire industry.

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 capitalization is $819.9 billion, according to CoinMarketCap.

Among the 100 largest 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 for the week are Huobi Token (HT) at -9.32%, Chain (XCN) at -7.09%, and Internet Computer (ICP) at -5.19%.

For more information on crypto prices, be sure to read Cointelegraphs market analysis.

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Most Memorable Quotes

Bitcoin, in particular, has the potential to promote financial inclusion due to its decentralized nature, which makes it resistant to censorship and manipulation.

Philip Karaorevi, 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 a lot of security issues because people don’t realize it’s their personal liability against their own assets. People are not ready for that. »

Dmitry Mishunin, CEO of HashEx

We’re proud of our commitment to compliance, but we’re also willing to acknowledge our shortcomings, including paying penalties and working hard to resolve issues.

Paul Grewal, Chief Legal Officer of Coinbase

In fact, crypto-assets have become investment and financial instruments, so they should be regulated on an equal footing with other financial and investment instruments.

Suminto Sastrosuwito, Director at the Indonesian Ministry of Finance

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

Letitia James, New York Attorney General

Prediction of the week BTC price forms new support at $16.8K as Bitcoin attracts mega whales

As 2023 begins, Bitcoin continues to experience a lack of volatility, leading to debates among traders about when a breakout should occur. The narrow trading range has been in place since the FTX saga in November.

The Trend Rider trading platform examined the 1-week chart to flag $16,800 as the current 100-week point of control (PoC), the price level generating the greatest volume during the specific time frame.

~16.8K is the new weekly 100 POC for Bitcoin. Simply put, over the past 100 weeks, this is the level where most volume has been traded, creating potential bottom formation, the crypto firm noted.

FUD of the Week Mango Markets exploiter Avraham Eisenberg taken into custody pending trial

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

Silvergate sold assets at a loss and downsized to cover $8.1 billion in withdrawals

The collapse of FTX sparked a run on Silvergate, forcing the bank to sell assets at a loss to cover some $8.1 billion in withdrawals. In addition, about 200 bank employees were laid off, or 40% of its workforce. The bank has come under scrutiny from US lawmakers due to 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 reportedly cut 30% of its workforce. The crypto lending platform halted withdrawals and suspended new lending in November, citing unprecedented market turmoil. In another headline about downsizing, crypto exchange Huobi announced plans to lay off 20% of its staff as part of its ongoing restructuring following the company’s acquisition by Justin Suns.

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Cointelegraph Magazine writers and reporters contributed to this article.

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