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Prime Tales This Week
Caroline Ellison wished to step down however feared a financial institution run on FTX
Caroline Ellison, former CEO of Alameda Analysis, testified for over 10 hours this week at Sam Bankman-Fried’s trial, providing deeper particulars on the occasions that anticipated the FTX debacle in November 2022. From Ellison’s testimony, jurors discovered that she deliberate to depart Alameda months earlier than its collapse, however feared a financial institution run on FTX amidst the crypto market downturn. The week additionally featured a recording introduced as proof within the case displaying the precise second Ellison informed workers about Alameda’s use of FTX buyer deposits. Among the many key moments of Bankman-Fried’s trial had been revelations of fabricated steadiness sheets with the intention to deceive crypto lenders, in addition to BlockFi CEO Zac Prince’s testimony. Take a look at this week’s highlights from Cointelegraph’s crew on the bottom.
Months earlier than the collapse of crypto alternate FTX, former CEO Sam Bankman-Fried was “freaking out” about shopping for shares in Snapchat, elevating capital from Saudi royalty and getting regulators to crack down on rival crypto alternate Binance, in response to proof introduced in courtroom this week as part of the continuing legal trial. Bankman-Fried believed Binance leaked an Alameda steadiness sheet to the media in 2022. Based on a doc from Nov. 6, 2022, Bankman-Fried wrote that Binance had been “partaking in a PR marketing campaign in opposition to us.” It continued, saying that Binance “leaked a steadiness sheet; blogged about it; fed it to Coindesk; then introduced very publicly that they had been promoting $500m of FTT in response to it whereas telling clients to be cautious of FTX.”
SEC reportedly gained’t enchantment courtroom choice on Grayscale Bitcoin ETF
The USA Securities and Trade Fee reportedly has no plans to enchantment the latest courtroom choice that favored Grayscale Investments. The ruling requires the SEC to assessment the agency’s spot Bitcoin exchange-traded fund (ETF) software. The SEC’s supposed choice to not enchantment doesn’t essentially imply Grayscale’s software is about to be accepted. If the stories are true, the SEC might want to comply with the courtroom’s August order and assessment Grayscale’s software to vary its Grayscale Bitcoin Belief right into a spot Bitcoin ETF.
Terraform Labs contends Citadel Securities had a hand in its stablecoin collapse
Terraform Labs has once more pointed the finger at market maker Citadel Securities for its position in an alleged “concerted, intentional effort” to trigger the depeg of its TerraUSD stablecoin in 2022. On Oct. 10, Terraform Labs filed a movement in the US to compel Citadel Securities to provide paperwork referring to its buying and selling exercise in Might 2022, when TerraUSD Traditional depegged. In its movement, Terraform argued that the paperwork are essential for its protection within the lawsuit filed by the U.S. Securities and Trade Fee in February, which alleged Terraform Labs and its founder, Do Kwon, had a hand in “orchestrating a multi-billion greenback crypto asset securities fraud.” Citadel Securities has, nevertheless, beforehand denied buying and selling the TerraUSD stablecoin in Might 2022.
Mastercard publicizes profitable wrapped CBDC trial outcomes
Mastercard has accomplished a trial involving wrapping central financial institution digital currencies (CBDCs) on completely different blockchains, much like wrapped Bitcoin and wrapped Ether. The trial was carried out with the Reserve Financial institution of Australia and the nation’s Digital Finance Cooperative Analysis Centre CBDC. Mastercard mentioned the answer allowed a CBDC proprietor to buy a nonfungible token (NFT) listed on Ethereum. “The method ‘locked’ the required quantity of a pilot CBDC on the RBA’s pilot CBDC platform and minted an equal quantity of wrapped pilot CBDC tokens on Ethereum,” the fee processor wrote.
Winners and Losers
On the finish of the week, Bitcoin (BTC) is at $26,892, Ether (ETH) at $1,551 and XRP at $0.48. The overall market cap is at $1.05 trillion, in response to CoinMarketCap.
Among the many greatest 100 cryptocurrencies, the highest three altcoin gainers of the week are Loom Community (LOOM) at 86.71%, Belief Pockets Token (TWT) at 16.72% and Tether Gold (XAUt) at 5.16%.
The highest three altcoin losers of the week are Mantle (MNT) at -17.27%, Rocket Pool (RPL) at -14.39% and Avalanche (AVAX) at -13.39%.
For more information on crypto costs, be sure to learn Cointelegraph’s market evaluation.
Learn additionally
Most Memorable Quotations
“That’s our homework, truly. To actually educate individuals about the advantage of utilizing blockchain.”
Grace Sabandar, co-founder of the Indonesia Blockchain and Metaverse Middle
“Crypto-assets markets, together with DeFi, don’t symbolize significant dangers to monetary stability at this level.”
European Securities and Markets Authority
“I was worrying about customer withdrawals from FTX, this getting out, people to be hurt. […] I didn’t feel good. If people found out [about Alameda using FTX funds], they would all try to withdraw from FTX.”
Caroline Ellison, former CEO of Alameda Research
“It’s alarming and should be a wakeup call for lawmakers and regulators that digital wallets connected to Hamas received millions of dollars in cryptocurrencies.”
Elizabeth Warren, U.S. senator
“Bitcoin and Ethereum may seem like opposites, but they can co-exist and complement each other.”
Willem Schroé, CEO of Botanix Labs
“People who believe SBFraud is a ‘good guy’ who made ‘mistakes’, and FTX grew too fast and it all got away from him, should NEVER be in charge of other people’s money.”
John Deaton, attorney and crypto advocate
Prediction of the Week
Ethereum losing streak vs. Bitcoin hits 15 months — Can ETH price reverse course?
The price of Ethereum’s native token, Ether, is trading around a 15-month low versus Bitcoin, and the lowest since Ethereum switched to proof-of-stake. The ETH/BTC pair dropped to as low as 0.056 BTC earlier this week. In doing so, the pair broke below its 200-week exponential moving average (200-week EMA; the blue wave) near 0.058 BTC, raising downside risks further into 2023.
The 200-week EMA has historically served as a reliable support level for ETH/BTC bulls.
ETH/BTC stares at similar selloff risks in 2023 after losing its 200-week EMA as support. In this case, the next downside target looks to be around its 0.5 Fibonacci line near 0.051 BTC in 2023, down about 9.5% from current price levels.
Conversely, ETH price may rebound toward its 50-week EMA (the red wave) near 0.065 BTC if it reclaims the 200-week EMA as support.
FUD of the Week
Mistake or money laundering? User pays $1.6 million for CrypToadz NFT
One of the CrypToadz NFTs, whose average price doesn’t exceed $1,000, was bought for an astonishing 1,055 wrapped Ether, an equivalent of $1.6 million. The CrypToadz collection was launched during the NFT boom of 2021 and surpassed a trading volume of $38 million worth of Ether during its first 10 days on the market. The price paid by the anonymous user for the NFT raised questions among the community. Two weeks ago, this item was acquired for 0.95 ETH (around $1,600), only to be sold for a price a thousand times higher.
USDR stablecoin depegs to $0.53, but team vows to provide solutions
Real estate-backed stablecoin USDR lost its peg to the United States dollar after a rush of redemptions caused a draining of liquid assets such as Dai from its treasury. USDR, backed by a mixture of cryptocurrencies and real estate holdings, is issued by the Tangible protocol, a decentralized finance project that seeks to tokenize housing and other real-world assets. During the crisis, a trader reportedly exchanged 131,350 USDR for 0 USD Coin, resulting in a complete loss on investment.
HTX claws back $8M in stolen funds, issues 250 ETH bounty to hacker
Huobi Global’s crypto exchange HTX has confirmed the return of the funds stolen by a hacker in late September and issued a 250 Ether bounty after resolving the issue. One of HTX’s hot wallets was drained of 5,000 ETH on Sept. 25, worth roughly $8 million at the time. Shortly after the hack occurred, the firm contacted the hacker and claimed to know their identity. HTX ultimately offered to pay a 5% bounty worth around $400,000 and not to take any legal action if they returned 95% of the funds before a deadline of Oct. 2.
Beyond crypto: Zero-knowledge proofs show potential from voting to finance
An emerging cryptographic technology may provide help with two gaping 21st-century needs: Privacy and truth.
Eleanor Terrett on impersonators and a better crypto industry
Fox Business producer Eleanor Terrett’s following exploded after she began providing commentary on the SEC v. Ripple lawsuit.
SBF’s alleged Chinese bribe, Binance clarifies account freeze: Asia Express
SBF allegedly bribes Chinese officials with $150 million to unfreeze accounts, Binance justifies blocking Hamas users, meanwhile, Huobi hacker returns all $8M in stolen assets.
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Cointelegraph Magazine writers and reporters contributed to this article.
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