SBF’s claim of innocence contradicts other witnesses: the law has been decoded
Last week, FTX founder and CEO Sam “SBF” Bankman-Fried's criminal trial continued in New York, where the man himself testified in his defense. According to the SBF, Alameda Research did not discover any information about the North Dimension creation allegedly used to siphon customer funds from the crypto exchange. It was Dan Friedberg, the former chief regulatory officer, who issued the papers establishing the organization, which he signed without question, SBF said.
Bankman-Fried crypto exchange FTX has denied knowing why it began moving user funds from bank accounts from Alameda to North Dimension. He suggested that banks may be more comfortable with North Dimension to avoid well-known crypto-linked hedge funds like Alameda.
Gary Wang, the former CEO and FTX's former chief technology officer, pointed out that he was partially responsible for creating the “Allow Negative” button for Alameda Research. The feature gives crypto hedge funds the ability to trade more money than ever before. “I wasn't entirely sure what happened at the time,” Banman-Fried said of Alameda's line of credit. “I thought the funds were held in a bank account or sent to FTX in Stablecoins. If Alameda is expecting it, I thought it would be reflected as a negative number on FTX.
Bankman-Fried's claims are partially or directly contradicted by testimony given by Wang and former Alameda CEO Carlin Ellison. Wang took the stand on October 6, Bankman-Fried ordered him and former FTX engineering director Nishad Singh to implement the “allow negative” feature in 2019. Ellison testified that she wanted to resign as Alameda's CEO, but SBF asked her to stay on, citing concerns about rumors about the company's financial health.
California lawmakers want $1,000 per day ATM withdrawals
California lawmakers have introduced a bill that seeks to cap digital financial asset trading kiosks at $1,000 a day on crypto ATM withdrawals in light of growing fraud. In addition, beginning in 2025, the law would limit operator fees to $5 or 15% (whichever is higher). The bill, if passed, would take effect on January 1, 2024. It was introduced after lawmakers visited a crypto ATM in Sacramento and found markups of up to 33% on some crypto assets on crypto exchanges. On average, a crypto ATM charges between 12% and 25%, according to a legislative analysis.
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Cynthia Lummis calls for DOJ action against Binance and Tether.
US Senator Cynthia Lammis has asked the US Department of Justice (DOJ) to investigate charges against crypto exchange Binance following terrorist group Hamas' attacks on Israel. In a letter to US Attorney General Merrick Garland, Lammis and Arkansas Representative French Hill urged Justice Department officials to “indict Binance” and “immediately conclude” investigations into Tether-related illegal activities.
“We urge the Department of Justice to carefully review the extent to which Binance and Tether are providing material support and resources to support terrorism in violation of applicable embargo laws and the Bank Secrecy Act,” Lummis and Hill said.
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Crypto companies have breached new UK promotion laws 221 times
Since the UK's Financial Conduct Authority (FCA) crypto-promotion rules came into effect on October 8, companies are still failing to provide visible enough risk warnings and adequate information about risks and making claims about safety, security or simplicity. Using crypto without explaining the risks involved. Cryptocurrency firms have breached the new law at least 221 times since it came into effect, according to the FCA. While many of the FCA's crypto-related alerts appear to be illegal schemes offering high returns on crypto investments, the FCA has also cracked down on seemingly legitimate businesses.
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