• Academic philosophers had been warned about Sam Bankman-Fried’s character and moral failings as early as 2018.
• Despite attempts by Alameda Research staff to push Bankman-Fried out, some leaders of the Effective Altruism movement continued to promote him publicly.
• It has now been revealed that FTX transferred $2.2 billion to Bankman-Fried through various entities.
The Warning Signs
Academic philosophers had been warned about Sam Bankman-Fried’s character and moral failings as early as 2018 according to Time magazine, but leaders of the Effective Altruism movement continued to promote him publicly despite formal attempts by Alameda Research staff to push him out at the time.
The Financial Transfers
It has now been revealed that FTX transferred $2.2 billion to Bankman-Fried through various entities, although it is not clear how much he personally profited from these transfers or what they were used for.
The Panel Discussion
The Hash panel discussed the latest in the fall of SBF’s crypto empire and highlighted some of the early red flags that should have been heeded by those in positions of power within the Effective Altruism movement.
Consequences for Leaders
As a result of their failure to address these warnings and take action against Bankman-Fried, those who promoted him have come under scrutiny and criticism from both inside and outside of the movement for their role in enabling his misconduct.
Moving Forward
Going forward, this incident has raised questions about whether leaders within movements such as Effective Altruism are doing enough due diligence when promoting individuals or organizations, especially when large sums of money are involved.
• Bitcoin price increased 8% after FDIC announced that all Silicon Valley Bank customers will have full access to their money.
• Shares in San Francisco-based First Republic Bank (FRC) nosedived in premarket trading, reflecting investor angst over the banking sector’s health.
• Jenny Johnson, President and CEO of Franklin Templeton, will discuss developing crypto-linked investment products in a bear market.
Bitcoin Price Increases as FDIC Steps In for Silicon Valley Bank
The latest price moves in crypto markets saw bitcoin gain 8% after the Federal Deposit Insurance Corp. (FDIC) said all depositors of Silicon Valley Bank will have full access to their money beginning Monday morning. The FDIC has confirmed a successful transfer of deposits to a new bridge bank called Silicon Valley Bank N.A., which will be operated by the FDIC.
Shares in FRC Drop Amid Investor Angst Over Banking Sector Health
Risky assets pared or reversed early gains during the European trading hours as shares in San Francisco-based First Republic Bank (FRC) nosedived in premarket trading in the U.S., reflecting investor angst over the banking sector’s health. Bitcoin pulled back to $22,000 after it nearly tested its 50-day simple moving average at $22,900 during Asian daytime hours.
Silicon Valley Bank Customers Have Full Access to Funds
Silicon Valley Bank is used by many tech companies, an area that includes crypto startups. The customers now have full access to their funds due to FDIC’s move to set up the new bridge bank with deposits from Silicon Valley Bank moved to it successfully on Monday morning.
Jenny Johnson Discussing Crypto Investment Products
Jenny Johnson, President and CEO of Franklin Templeton, will discuss developing crypto-linked investment products in a bear market; including her views on the mood among her clients and her long-term outlook for digital asset markets and investments linked to them
• The US Department of Justice proposed bail conditions for Sam Bankman-Fried that would restrict his use of the internet, including a non-internet-connected flip phone.
• This proposal was made after suspicions that Bankman-Fried attempted to contact witnesses while on bail for charges including wire fraud and money laundering.
• His laptop would be restricted to a whitelist of approved websites, video games and other connected applications.
Suspicions of Witness Tampering
The U.S. Department of Justice has proposed strict bail conditions for Sam Bankman-Fried, founder of bankrupt crypto exchange FTX, due to suspicions that he attempted to contact witnesses while on bail for charges such as wire fraud and money laundering.
Restrictions Proposed by DOJ
The proposed restrictions include restricting Bankman-Fried’s use of the internet with a non-internet connected flip phone and limiting his laptop use to only approved websites including news, sports, Wikipedia and the U.S government. Additionally, his use of video games and other connected applications should also be restricted.
Reaction From “The Hash” Panel
In response to these latest developments, Commissioner Christy Goldsmith Romero from the U.S Commodity Futures Trading Commission hosted a panel discussion called “The Hash” to explore the policy fallout from the 2022 market crash as well as CBDCs (central bank digital currencies).
Jack Schickler’s Background
Jack Schickler is a CoinDesk reporter based in Brussels focused on crypto regulations who does not own any crypto himself. He covers topics such as blockchain technology and trends in cryptocurrency usage around the world in depth.
Conclusion
It remains unclear what will happen next with regards to Sam Bankman-Fried’s case but it is clear that authorities are taking allegations of witness tampering seriously and are willing to take drastic steps in order protect those involved in criminal cases involving cryptocurrency exchanges or other related activities.
• Gary Gensler, SEC Chair, recently suggested in an interview that all cryptocurrencies other than bitcoin are securities
• This statement raises important philosophical questions about securities law
• This article provides analysis of the implications of this statement
Gary Gensler’s Take on Crypto
SEC Chair Gary Gensler recently suggested in an interview with New York magazine that all cryptocurrencies other than bitcoin are securities. This statement raises important questions about the implications of labeling an asset a security and how it might shape future U.S. crypto regulation.
The Implications of Labeling an Asset a Security
Labeling an asset a security changes nothing fundamental about the asset itself. It is simply a legal designation meant to protect investors from potential financial harm and to provide additional oversight of certain investment products. The SEC’s decision to classify certain assets as securities does not necessarily mean that those assets will be subject to more stringent regulation or enforcement action; rather, it serves as a signal for market participants to exercise caution when investing or dealing with such assets.
What Does This Mean for Crypto?
Gensler’s comments suggest that non-bitcoin cryptocurrencies may be subject to increased scrutiny under federal securities laws. However, it is important to keep in mind that this is only speculation at this point and there is no guarantee that these assets will be subject to any additional regulation or enforcement action by the SEC or other government bodies. Moreover, it is unlikely that Gensler’s comments alone will cause a major shift in the regulatory landscape for cryptocurrency markets; instead, this should serve as a reminder for investors and market participants to remain vigilant and aware of the risks associated with their investments.
Conclusion
It remains unclear what exactly Gensler meant by his statement and whether his comments have any bearing on future policy decisions regarding cryptocurrency markets. Nevertheless, his suggestion highlights the importance of exercising caution when investing or dealing with digital assets, regardless of whether they are classified as securities or not. While labeling an asset a security may impose additional obligations on those who deal with them, it does not fundamentally change anything about the asset itself nor does it guarantee increased regulatory oversight or enforcement action against those involved in trading them.
Takeaways
• Gary Gensler recently suggested that all cryptocurrencies other than bitcoin are securities
• Labeling an asset a security changes nothing fundamental about the asset itself but serves as a signal for market participants to exercise caution
• His suggestion highlights the importance of exercising caution when investing or dealing with digital assets
• OKX released a proof-of-reserves report showing $8.6 billion in “clean assets” with a reserve ratio of 104% for Bitcoin (BTC), 104% for Ether (ETH) and 102% for USDT.
• CryptoQuant data shows that OKX maintains an entirely clean reserve, while Binance and Huobi have 94% and 61%, respectively.
• Haider Rafique, OKX’s CMO, stated that OKX has “never used a native token to finance the company.”
OKX Releases February Proof-of-Reserves Report
FinanceOKX recently released their February proof-of-reserves report which showed $8.6B in ‘clean assets’. According to CryptoQuant, reserves are 100% clean compared to 94% for Binance and 61% for Huobi. Since the launch of this initiative late last year, over 175,000 unique users have visited their proof-of-reserves page.
Reserve Ratio
The exchange reports that they are overcollateralized with a reserve ratio of 104% for bitcoin (BTC), 104% for ether (ETH) and 102% for USDT. This means that they are holding more than enough cryptocurrency to cover all liabilities on the platform.
Native Token
OKX’s token, OKB is currently trading at $52.35 according to CoinGecko data; up 28.4%. When asked about the native token being used to finance the company, Haider Rafique, CMO of OKX stated that it was “never a big part of our business or treasury” but rather designed as a way to engage active customers by providing discounts through activity on the platform.
Proof Of Reserves
Proof of reserves is an important topic when it comes to building user trust in crypto platforms like OKX; they have committed themselves to ensuring they show leadership in this area. The latest report from OKX shows how dedicated they are towards transparency within their organisation and how much progress they have made since launching last year.
Conclusion
In conclusion, OKX has shown strong commitment towards transparency by releasing their February proof-of-reserves report which showed $8.6B in clean assets with a reserve ratio well above 100%. The native token was not designed as a way to finance the company but rather as an incentive program where active users can get discounts through activity on the platform; further increasing user trust in the platform overall
• Binance’s BUSD stablecoin is the target of US financial regulators, causing a plunge in BNB token prices.
• Bitcoin and Ethereum have remained relatively flat despite this news.
• Tastycrypto Head of Digital Assets Ryan Grace believes that Bitcoin could hit $25,000 this year.
Binance BNB Token Plunges Following U.S. Regulatory Uproar
The price of Binance’s BNB token has taken a significant hit following recent regulatory scrutiny from the U.S.. The Securities and Exchange Commission (SEC) is set to launch enforcement action against Paxos, the issuer of the stablecoin BUSD, deeming it a security and prompting withdrawals from Binance as traders react negatively to the news.
Bitcoin and Ethereum Remain Relatively Flat
Despite the turmoil surrounding BNB tokens, bitcoin and ether remain relatively flat with only slight changes in prices on Tuesday morning UTC. Although there may be some headline risk associated with the SEC’s crackdown on the stablecoin, Ryan Grace of Tastycrypto believes that Fed policy is still one of the primary drivers for crypto markets at present.
Asia Likely To Become Global Hub For Digital Assets
Recent events involving digital assets underscore why Asia is becoming an increasingly likely global hub for them according to CoinDesk markets reporter Sam Reynolds’ analysis. With countries such as Japan introducing new regulations governing cryptocurrency exchanges and other players in East Asia taking steps towards embracing digital assets more fully, Asia’s role in driving innovation seems poised to become even more significant than before.
Ryan Grace Predicts Bitcoin Could Reach $25K This Year
Tastycrypto head of digital assets Ryan Grace has predicted that despite certain challenges faced by crypto this year, bitcoin could still reach a value of $25k by December 2021 if market conditions are favourable enough for it to do so. With investors monitoring market sentiment closely ahead of key events such as inflation readings later this week, it remains uncertain whether bitcoin will indeed reach its next milestone or not – but many analysts remain optimistic about its prospects nevertheless.
CoinDesk Market Index (CMI)
Here are some figures on major indices at 7am ET/11am UTC Tuesday February 14th: CoinDesk Market Index (CMI) 1,029 −2.5 ▼ 0.2%, Bitcoin (BTC) $21,776 +22 ▲ 0.1%, Ethereum (ETH) $1,505 −7 ▼ 0.5%, S&P 500 4137 +47 ▲ 1% , Gold $1866 +3 ▲ 0 % , Nikkei 225 27 427 −244 ▼ 0%.
• Sam Bankman-Fried has appealed a judge’s decision to make the identities of two bond co-signers public.
• Judge Lewis Kaplan had ruled in favor of news organizations seeking the names of these individuals.
• Bankman-Fried’s lawyers argued that disclosing the identities could put them at risk.
Sam Bankman-Fried Appeals Judge’s Decision to Reveal Bond Co-Signers
Judge Lewis Kaplan Rules for Media Companies Seeking Names
Early last week, U.S. District Judge Lewis Kaplan allowed four separate petitions by a number of news organizations, including the Wall Street Journal, Bloomberg and CoinDesk, to release the identities of two people who co-signed a $250 million bail bond for former FTX chief Sam Bankman-Fried earlier this month. While it was known that his parents also co-signed the bond, the other names were kept private.
Bankman-Fried Appeals Ruling
Bankman-Fried has subsequently filed an appeal against this ruling and a stay on its enforcement has been granted until at least Feb 14th 2021. His legal team argued that making these names public could potentially put them at risk due to physical threats, while media companies contended that “the public’s interest in this matter cannot be overstated.”
Media Companies Cite Public Interest as Reason for Disclosure
The news organizations argued that there is great public interest in knowing who backed such a large financial transaction, particularly one involving someone with such high profile relationships within the crypto industry as Bankman Fried. They stated that making these details public would help inform debate and discussion about important issues related to cryptocurrencies markets and operations. Furthermore, they claimed that withholding such information from the public would hamper their ability to do their jobs properly and prevent them from bringing important stories into light for discourse in society.
Arguments Over Physical Threats vs Public Interest
The ongoing battle between Bankman Fried’s legal team and media outlets highlights the fundamental tension between protecting individuals’ privacy versus upholding freedom of speech and open access to information which is necessary for holding powerful individuals accountable in a democratic society. On one hand there is valid concern over potential risks posed by those with malicious intent if certain data is made available publicly; however on the other hand withholding vital information can also lead to potential abuse or corruption as people are unable to exercise their right to question what is going on behind closed doors or challenge decisions made by those with power or influence in society .
Stay Granted Until Further Notice
With an appeal having now been filed against Judge Kaplan’s ruling, it has been stayed until February 14th when further proceedings will take place regarding whether or not these two unidentified co-signers should remain anonymous or have their names revealed publicly after all .
• Avraham Eisenberg, a crypto trader, lost his gamble when he was sued by Mango Labs for $47 million.
• The case is a study of how ideals of crypto governance can be trumped by real-world contracts law.
• Eisenberg had negotiated a settlement with Mango Markets’ decentralized autonomous organization (DAO) that he thought exempted him from civil liability, but now Mango Markets are demanding he pay back the DAO.
Avraham Eisenberg, a crypto trader, was recently hit with a $47 million civil suit from Mango Labs for his role in the destructive exploit of Mango Markets. The case is one of how the ideals of crypto governance can be trumped by real-world contracts law.
In October 2020, Eisenberg had negotiated a settlement with Mango Markets’ decentralized autonomous organization (DAO) that he thought exempted him from civil liability. He had used “the protocol as designed” and wanted to protect himself in case his victims felt otherwise, so he negotiated with them to make sure they would not sue.
Unfortunately, despite his best efforts, Mango Markets representatives now say the DAO’s own deal should be thrown out for effectively violating contracts law. They are demanding Eisenberg pay back the DAO for his role in the exploit. This is a prime example of how powerless crypto governance is when faced with the conventional legal system.
Mango Markets was a popular platform for trading crypto tokens and derivatives on the Solana blockchain. MNGO holders controlled the governance of the platform, and they were the ones who approved the settlement that Eisenberg thought would protect him.
Unfortunately, the US courts disagreed with the settlement and have now demanded Eisenberg pay back the $47 million he was accused of stealing. This case has highlighted how crypto governance and contracts law can conflict, and it serves as a warning to all crypto traders and investors to be aware of the potential legal risks of their activities.
The case of Avraham Eisenberg is a cautionary tale for all those involved in the crypto space. It is a reminder of the importance of understanding the legal implications of any actions taken, and of being aware of the limitations of crypto governance when dealing with real-world contracts law.
• Bitcoin prices have been seesawing above and below the $23,000 threshold.
• Analysts remain cautious about bitcoin’s future despite the recent surge.
• The recent narrative of falling inflation, gently slowing economic growth, and a U.S. central bank primed to raise interest rates at a more moderate pace than in 2022 has been dominating the markets.
The cryptocurrency markets have been in a state of flux in recent days, with bitcoin prices seesawing between above and below the $23,000 threshold. Investors remain hopeful about the future of crypto amid macroeconomic conditions that suggest falling inflation, gently slowing economic growth, and a U.S. central bank primed to raise interest rates at a more moderate pace than in 2022.
Bitcoin prices have been in a state of flux in recent days, with prices rising to just above $23,000 before retreating back down again. On Monday, bitcoin prices rose to $23.1K before retreating back down. The cryptocurrency has now seen three surges above this threshold in the past four days. Despite this, analysts remain cautious about the future of bitcoin and other major cryptos.
Many analysts point to the tumultuous economic conditions as having a major influence on the markets. With inflation expected to fall and the U.S. central bank likely to raise interest rates at a more moderate pace than in 2022, investors have been expressing optimism that the markets will remain stable despite some volatility.
However, some analysts remain wary about the future of bitcoin and other major cryptos. They point to the recent surge as being driven by speculative buying and argue that prices could eventually come back down again. Others point to the uncertain regulatory environment as a potential risk factor for the markets going forward.
At the same time, many investors remain bullish on the future of bitcoin and other major cryptos. They point to the underlying technology as being revolutionary and argue that prices will continue to rise in the future.
Overall, the cryptocurrency markets remain in a state of flux as investors attempt to navigate the uncertain economic conditions. While analysts remain divided in their outlooks, one thing is certain: the future of bitcoin and other major cryptos remains uncertain, and investors should exercise caution when making any investment decisions.
• Shyam Nagarajan, an executive partner at IBM Consulting, says CBDCs have the potential to change payment systems.
• Nagarajan says issuers should consider a hybrid model of permissioned and permissionless currency.
• Rob Massey of Deloitte said programmable money will soon be available in the market.
The potential of Central Bank Digital Currencies (CBDCs) to revolutionize payment systems was the focus of a discussion between Shyam Nagarajan, executive partner at IBM Consulting, and Rob Massey, global tax leader, blockchain and cryptocurrency at Deloitte, during CoinDesk TV’s “First Mover” from the World Economic Forum’s annual conference in Davos, Switzerland.
Nagarajan said that CBDCs are the future of money and that issuers should consider a hybrid model of permissioned and permissionless currency. This would enable banks and other financial institutions to control the currency and its issuance, while allowing users to use it in a decentralized manner. He added that payments will eventually be made with CBDCs, but that stablecoins, which are a form of cryptocurrency pegged to real-world assets such as gold or the U.S. dollar, are currently serving as “stopgaps” until CBDCs are available in the market.
Massey echoed Nagarajan’s sentiments, stating that the ability to use programmable money will soon be available in the market. He believes this will lead to a new era of faster and more efficient payments, as well as enhanced convenience for users. Massey also highlighted the potential of CBDCs to increase financial inclusion and reduce poverty, particularly in developing nations.
The two executives believe that the benefits of CBDCs will only be fully realized if they are adopted widely, and that regulators must ensure that the proper framework is in place to protect users and ensure the integrity of the system. They also noted that there are still many challenges to be addressed, such as ensuring the privacy and security of user data, and that the development of CBDCs is still in its early stages.
Overall, the conversation between Nagarajan and Massey showed that CBDCs have the potential to revolutionize the world of finance and payments, and that the development of these currencies must be done with utmost care. The two executives believe that the benefits of CBDCs will be felt globally, and that they can lead to a more equitable and inclusive financial system.