A Billion Dollar Fraud? 🥶
In today's edition: 🎙️ New episode!, 👁️ Terraform Labs' subpoena, ⏸️ Credit crunch hits MakerDAO, 🏦 SEC & CFTC to take the lead?, and more!
What’s Poppin’?
by Samyuktha Sriram
FTX Sues SBF and His Inner Circle to Recover Over $1 Billion
Lawyers for the bankrupt crypto exchange alleged that Sam Bankman-Fried, Caroline Ellison, Gary Wang and Nishad Singh made over $1 billion worth of fraudulent transfers between February 2020 and November 2022.
Terraform Labs Seeks to Subpoena FTX for SEC Fraud Defense
Terraform Labs wants access to wallets used by short sellers on FTX to trade UST and LUNA to prove that a “coordinated attack” was behind the depeg of its algorithmic stablecoin.
Revised Crypto Oversight Bill Gives CFTC and SEC ‘Seat at the Table’
Industry watchers were divided on whether the new digital asset bill provided much-needed regulatory clarity for the industry, or whether it spelled the end for DeFi.
MakerDAO Halts Lending to Tokenized Credit Pool After $2 Million Default
The DeFi protocol’s community voted to decrease the debt ceiling to the beleaguered tokenized credit pool to zero.
On the Pod…
If the SEC wants to appeal last week’s judgment in the Ripple case, it better act fast. So says Bill Hughes, regulatory chief at Ethereum booster ConsenSys and one of the many crypto policy pros assessing the ramifications of U.S. district judge Analisa Torres’ decision.
The regulatory agency’s decision to appeal hinges on a number of factors, Hughes says, including that this Supreme Court will likely be unkind to SEC Chair Gary Gensler’s interpretation of how to regulate crypto. But of course, a political calculus is also in play, and suddenly U.S. lawmakers have a slew of crypto bills and amendments to choose from. How will it play out?
Daily Bits…✍️✍️✍️
📖 Former Alameda Research executive, Caroline Ellison, expressed her doubts and fears about the impending fraud exposure in her diary, a copy of which was obtained by The New York Times. 📚 The U.S. Department of Justice alleged that Sam Bankman-Fried leaked Ellison’s private diary to the New York Times, in an attempt to discredit her ahead of his upcoming trial.
Moreover, 💼 eight months before the collapse of FTX, Ellison privately noted an estimated $10 billion cash deficit at the crypto exchange, according to recent legal documents.
👨⚖️ Sam Bankman-Fried's brother allegedly intended to use FTX funds to purchase the island nation of Nauru to build an apocalypse bunker, according to a lawsuit in the ongoing FTX bankruptcy case.
⏰ Coin Center's challenge against the expansion of Section 6050I of the tax code, which mandates citizens to report crypto payments over $10,000 to the government, was dismissed as unripe, but they plan to appeal.
📉 Coinbase will terminate its "Borrow" program for retail clients, offering bitcoin-backed cash loans, and customers must settle outstanding balances by Nov. 20 to avoid bitcoin collateral sales.
🚨 Canadian authorities warned of an increasing number of home invasions targeting substantial cryptocurrency investors, advising individuals to take precautions to protect themselves and their assets.
🇬🇧 The UK government dismissed proposals to regulate cryptocurrency as gambling, arguing that existing plans more effectively manage associated risks.
⚠️ FTX's bankrupt exchange users are possibly facing a phishing attack, prompted by an official-looking password reset email linked to the bankruptcy claims portal.
🔗 Coinbase's Base network, currently relying on optimistic rollups for its Ethereum connection, is looking to incorporate zk-proofs, aiming to leverage both technologies, according to protocols lead Jesse Pollak.
Today in Crypto Adoption...
💻 The UK's Financial Conduct Authority (FCA) is set to launch a permanent Digital Sandbox to facilitate early-stage testing of innovative products across various financial sectors.
The $$$ Corner…
💰 Binance Labs committed $10 million to Radiant Capital, a cross-chain lending and borrowing protocol, to support product development and expansion across Ethereum-compatible chains.
Bringing institutional-grade financial products on-chain, starting with the tokenization of US Treasuries and money market funds.
What Do You Meme?
Learn 🤓
How to Earn Interest on Stablecoins: A Step-by-Step Guide
You can earn interest on your stablecoin holdings in the centralized and decentralized finance markets.
📈 Your Market Update 📉
BTC is down 1.7%, trading at $29,784
ETH is down 1.7%, trading at $1,887
BTC dominance: 46.58%
Crypto market cap: $1.24 trillion
*All data as of today, 7:10 am ET
Recommended Reads
CoinDesk: Why Nasdaq Backing Out of Custody Is Bad, Bad News for Crypto
Forbes: Inside Binance’s Botched Efforts To Outwit Regulators In Europe
Fortune: Ben McKenzie needs a hug: The ‘OC’ star’s crypto book is an ill-informed flop
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