Sam Bankman Jailed: Diary Drama and Bond Blunders
MicroStrategy's Bitcoin Brag, Curve's Heist Healing, and Sotheby's Ape Auction Allegations
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Legal Troubles for Sam Bankman-Fried
FTX founder Sam Bankman-Fried is facing multiple financial crime charges and has been remanded into custody after a judge revoked his release on bond. The U.S. Department of Justice accused Bankman-Fried of violating the terms of his bond by tampering with witnesses and sharing part of a former CEO's private diary with the New York Times. His defense team argued against his jailing, stating it would hinder trial preparation, but the judge revoked his release on bond. Bankman-Fried is set to go on trial in October and faces additional charges in a separate trial next March.
MicroStrategy's Bitcoin Investment
MicroStrategy, a business intelligence giant, has marked three years since it first invested in Bitcoin. The company now holds $4.53 billion in BTC and company stock, which has seen a 210% increase since the initial Bitcoin purchase. Despite a 70% drop from its three-year high, MicroStrategy's stock remains strong. The company's CEO, Michael Saylor, has also expressed that the centralization of Bitcoin by large corporations should not be feared. He believes that as Bitcoin becomes more integrated into society, it will have diverse use cases and a one-size-fits-all model may not be feasible.
Regulatory Challenges for Cryptocurrencies
The regulatory landscape for cryptocurrencies is a hot topic, with Grayscale CEO Michael Sonnenshein warning that the SEC's approach could stifle innovation and drive crypto firms out of the United States. Meanwhile, U.S. Senator Cynthia Lummis and various crypto lobbying organizations have called on a federal court to dismiss the SEC's lawsuit against Coinbase, arguing that the SEC is overstepping its authority. Former SEC official John Reed Stark predicts that the United States' securities regulator could change its approach to crypto enforcement depending on the 2024 election. The SEC has also extended its review of the Ark 21Shares bitcoin exchange-traded fund (ETF) application, further prolonging the regulatory decision-making process.
Sotheby's Involvement in Bored Apes-MoonPay Lawsuit
Sotheby's has been added as a defendant in a class-action lawsuit involving MoonPay and the Bored Ape Yacht Club (BAYC). The lawsuit alleges that Sotheby's misled people by stating that a "traditional" art collector purchased 101 Bored Apes for $24.4 million when it was actually FTX. The lawsuit also includes a confidential witness, a former MoonPay employee, who claims they could not find any record of celebrity clients having an account with the company. The witness alleges suspicious activities by MoonPay and a lack of information on celebrity clients.
Argentina's Pro-Bitcoin Presidential Candidate
Javier Milei, a pro-Bitcoin libertarian candidate, unexpectedly took the lead in Argentina's primary presidential election. Milei has advocated for the elimination of the central bank and supports Bitcoin as a return of money to the private sector. He has called for the "dollarization" of the economy to combat triple-digit inflation. A general election will be held in October, and if no candidate receives 45% of the vote, a final runoff will take place in November.
Coinbase's Legal Battle with the SEC
Coinbase is receiving legal support in its battle against the SEC, with a group of legal scholars filing an amicus brief in support of the crypto exchange. The scholars argue for a strict interpretation of the term 'investment contract'. Their filing follows Senator Cynthia Lummis' submission of a favorable amicus brief. The scholars clarified that their affiliations with universities have no bearing on their involvement. The SEC had previously brought lawsuits against Coinbase and Binance in June.
Bitcoin's Market Performance
Bitcoin (BTC) has experienced a period of low volatility, surprising market participants. Traders are expecting a return to trend and are closely monitoring the 20-period moving average on three-week timeframes. Long positions from Bitcoin whales have been observed, indicating confidence in the market. However, the lack of movement in the BTC/USD order book suggests that the rangebound conditions may continue. Overall, the article suggests that Bitcoin has bottomed out and may be poised for a significant price movement.
Curve Finance's Recovery After Hack
Curve Finance, a decentralized finance platform, has announced its intention to reimburse users who were affected by a recent hack that resulted in a $62 million loss. The platform has already recovered approximately 79% of the funds and is actively investigating the remaining portion. They are also working on assessing the proportional portions of each impacted user to ensure a fair distribution of resources. The hacker responsible for the breach accepted a 10% bounty and initiated the process to restore the funds. The restitution process is still ongoing.
As always, stay tuned for more updates in crypto!