Top Stories This Week
Sam Bankman-Fried takes the stand on FTX’s collapse
Sam “SBF” Bankman-Fried, the founder of cryptocurrency exchange FTX, testified in his ongoing criminal trial in the Southern District of New York. He denied any wrongdoing between FTX and Alameda Research but acknowledged making mistakes during the companies’ growth. He denied directing his inner circle to make significant political donations in 2021 and claimed that FTX’s terms of use covered transactions between Alameda and the crypto exchange. Bankman-Fried also testified that he requested additional hedging strategies for Alameda in 2021 and 2022, but they were never implemented. The trial is expected to conclude soon.
‘Buy Bitcoin’ search queries on Google surge 826% in the UK
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As the crypto market experienced a major rally, Google searches for “buy Bitcoin” surged worldwide. In the United Kingdom, these searches increased by a staggering 826% in just one week. In the United States, searches for “should I buy Bitcoin now?” increased by more than 250%, while more niche searches, such as “can I buy Bitcoin on Fidelity?”, saw an increase of over 3,100%. The search term “is it a good time to buy Bitcoin?” gained 110% worldwide over the week.
US court issues mandate for Grayscale ruling, paving the way for SEC to review spot Bitcoin ETF
The United States Court of Appeals issued a mandate requiring the Securities and Exchange Commission (SEC) to review Grayscale Investments’ application for a spot Bitcoin exchange-traded fund (ETF). The court ruling came after the SEC failed to present an appeal by the deadline. The SEC has yet to approve a spot crypto ETF for listing on U.S. exchanges but has approved investment vehicles linked to Bitcoin and Ether futures.
Coinbase disputes SEC’s crypto authority in final bid to toss regulator’s suit
Cryptocurrency exchange Coinbase filed a final bid to dismiss a lawsuit by the U.S. Securities and Exchange Commission (SEC), arguing that the SEC overstepped its authority when it classified Coinbase-listed cryptocurrencies as securities. Coinbase claims that the cryptocurrencies it lists are not under the SEC’s purview. The SEC sued Coinbase in June, alleging that the exchange violated U.S. securities laws by listing tokens it considers securities without registering with the regulator.
Gemini sues Genesis over GBTC shares used as Earn collateral, now worth $1.6B
Cryptocurrency exchange Gemini has filed a lawsuit against Genesis, a bankrupt crypto lender, over the fate of 62,086,586 shares of Grayscale Bitcoin Trust (GBTC). These shares were used as collateral to secure loans made by Gemini users to Genesis through the Gemini Earn Program. The collateral is currently worth close to $1.6 billion. Gemini claims that it has received $284.3 million from foreclosing on the collateral for the benefit of users, but Genesis has disputed the action, preventing Gemini from distributing the proceeds.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $34,143, Ether (ETH) at $1,789, and XRP at $0.54. The total market cap is at $1.26 trillion, according to CoinMarketCap. Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Pepe (PEPE) at 72.08%, Mina (MINA) at 55.47%, and FLOKI (FLOKI) at 53.33%. The top three altcoin losers of the week are Bitcoin SV (BSV) at -10.27%, Toncoin (TON) at -3.14%, and Trust Wallet Token (TWT) at -0.82%.
Most Memorable Quotations
“The witness [Sam Bankman-Fried] has an interesting way of responding to questions.” – Lewis Kaplan, senior judge of the U.S. District Court for the Southern District of New York
“When it comes to illicit finance, crypto is not the enemy – bad actors are.” – Cynthia Lummis, U.S. senator
“I should say, I am not a lawyer, I am just trying to answer based on my recollection. […] At the time [at] FTX, certain customers thought accounts would be sent to Alameda.” – Sam Bankman-Fried, former CEO of FTX
“Without prejudging any one asset, the vast majority of crypto assets likely meet the investment contract test, making them subject to the securities laws.” – Gary Gensler, chair of U.S. Securities and Exchange Commission
“I do not believe there has been a single serious conversation regarding a settlement between Ripple […] and the SEC. The SEC is pissed and embarrassed and wants $770M worth of flesh.” – John Deaton, attorney
“He [Sam Bankman-Fried] thought he was going to take that money, and […] he would out-trade the market and put the money back and end up as a half-a-trillionaire, but it never works like that.” – Anthony Scaramucci, founder of SkyBridge Capital
Prediction of the Week
Bitcoin beats S&P 500 in October as $40K BTC price predictions flow in
Bitcoin performed well against macro assets in October, with its price hovering around $34,000. Cryptocurrency traders predicted that BTC would stay within the range of $33,000 to $35,000 for some time, with potential quick trades for levels within that range. Investors remain optimistic about Bitcoin’s future price movement, with some predicting that it could reach $40,000.
FUD of the Week
UK passes bill to enable authorities to seize Bitcoin used for crime
The United Kingdom has passed legislation that allows authorities to seize and freeze cryptocurrencies like Bitcoin if they are used for illicit purposes. The new law expands authorities’ ability to crack down on the use of cryptocurrency in crimes such as cybercrime, scams, and drug trafficking. The legislation permits the recovery of crypto assets used in crimes even without a conviction, as some individuals may avoid conviction by remaining remote.
Scammers create Blockworks clone site to drain crypto wallets
Phishing scammers cloned the websites of crypto media outlet Blockworks and Ethereum blockchain scanner Etherscan to trick unsuspecting users into connecting their wallets to a crypto drainer. A fake Blockworks site displayed a fake “BREAKING” news report about a supposed multimillion-dollar “approvals exploit” on the decentralized exchange Uniswap, encouraging users to visit a fake Etherscan website to rescind approvals. The fake news article was posted on Reddit across several popular subreddits.
Kraken to suspend trading for USDT, DAI, WBTC, WETH, and WAXL in Canada
Cryptocurrency exchange Kraken announced that it will suspend all transactions related to Tether, Dai, Wrapped Bitcoin, Wrapped Ether, and Wrapped Axelar in Canada in November and December. This move follows similar actions by other exchanges in Canada and aims to comply with regulatory requirements.
5,050 Bitcoin for $5 in 2009: Helsinki’s claim to crypto fame
Helsinki has a significant history with cryptocurrency, including being the location of the first exchange of Bitcoin for United States dollars. The city holds claim to being the birthplace of Bitcoin as a currency.
Australian authorities bust $145 million money laundering scam
Australian police have busted a $145 million money laundering scam involving cryptocurrencies. The scam targeted Australians and used cryptocurrencies to launder the proceeds of crimes, including identity theft, drug trafficking, and cyber fraud.
Web 3 Gamer: How blockchain games fared in Q3
Blockchain-based games received significant investment in Q3, with over $2.3 billion funding flowing into the sector. The growing popularity of these games is driving innovation and adoption in the blockchain gaming space. Notable developments include a partnership between a studio founded by ex-GTA developers and Immutable, the creators of Gods Unchained.
