SBF appeals fraud conviction, odds of 50 basis point rate cut increases
Sam Bankman-Fried appeals his fraud conviction amid claims of an unfair trial. Meanwhile, the likelihood of a 50 basis point rate cut by the Fed rises.
This week’s cryptocurrency news covers key updates, including Sam Bankman-Fried's appeal of his fraud conviction and developments related to U.S. monetary policy, which could impact the crypto market.
The founder of FTX, Sam Bankman-Fried, is challenging his fraud conviction and 25-year prison sentence. His legal team argues that the trial was unjust, highlighting alleged bias from Judge Lewis A. Kaplan. They claim the judge unfairly restricted the defense, such as blocking arguments that FTX customers might recover funds via bankruptcy.
In another major development, there is rising speculation about a possible 50-basis point interest rate cut by the U.S. Federal Reserve. This shift follows a Wall Street Journal report pointing to mixed economic signals, such as inflation persistence and a cooling labor market. While easier monetary policy often benefits assets like Bitcoin, concerns linger that rapid rate cuts could indicate deeper economic troubles, potentially driving down crypto prices.
Both events are critical as they highlight the intersection of legal, financial, and regulatory forces shaping the crypto landscape.
Latest cryptocurrency news
Sam Bankman-Fried requests new trial
Sam Bankman-Fried is seeking a new trial after his conviction, arguing that his initial trial was unfair. His legal team asserts that the jury did not receive a complete picture of the case and that new evidence could demonstrate FTX's financial stability, contradicting claims of insolvency. They also criticize a pre-testimony deposition process as an unprecedented tactic that disproportionately benefited the prosecution. Bankman-Fried’s appeal emphasizes perceived judicial bias and procedural irregularities that he believes undermined his defense.
Federal reserve interest rate cut possibilities
The likelihood of a significant 50-basis point rate cut by the U.S. Federal Reserve is now almost as high as the chances of a smaller 25-basis point cut. This shift comes amid new data showing a 0.3% increase in U.S. core inflation for August, which was higher than anticipated. The decision is closely watched on Wall Street, as a more aggressive rate cut might indicate concerns about economic weakness, impacting risk assets such as cryptocurrencies.
eToro settles with SEC
eToro has agreed to pay $1.5 million to settle charges with the U.S. Securities and Exchange Commission (SEC). The SEC accused eToro of operating as an unregistered broker and clearing agency. As part of the settlement, eToro will significantly reduce its cryptocurrency offerings in the U.S., limiting its trades to Bitcoin, Ethereum, and Bitcoin Cash, while ceasing trading of most other cryptocurrencies.
MicroStrategy expands Bitcoin holdings
MicroStrategy, under the leadership of Executive Chairman Michael Saylor, has acquired an additional 18,300 BTC for approximately $1.1 billion. This acquisition brings the company's total Bitcoin holdings to 244,800 BTC, purchased at an average price of $38,585 per Bitcoin. MicroStrategy’s total investment in Bitcoin now stands at around $14.6 billion, further solidifying its position as a major institutional investor in the cryptocurrency space.
Kraken challenges SEC allegations
Kraken has intensified its legal battle with the SEC by requesting a jury trial. The SEC alleges that Kraken failed to register as a broker, exchange, or clearinghouse, and labeled 11 cryptocurrencies, including ADA, ALGO, and SOL, as unregistered securities. Kraken disputes these claims and is pushing back against the SEC’s characterization of its offerings.
Flowcarbon begins investor refunds
Flowcarbon, the climate-focused crypto startup led by Adam Neumann, is refunding investors after failing to launch its “Goddess Nature Token” (GNT). The token was intended to represent carbon credits on the blockchain, aimed at helping offset carbon emissions. The failure to launch has prompted Flowcarbon to return the invested funds to its backers.
UK introduces crypto legislation
The UK government has introduced a significant piece of legislation, the Property (Digital Assets etc.) Bill, to clarify the legal status of digital assets such as cryptocurrencies and NFTs. The bill, presented on September 11, 2024, seeks to define digital assets as personal property under English law, aiming to provide clearer regulatory guidance for the crypto sector.
India and Nigeria lead in crypto adoption
According to Chainalysis’ 2024 Global Crypto Adoption Index, India and Nigeria remain at the forefront of global cryptocurrency adoption. India continues to hold the top spot for the second consecutive year, while Nigeria follows closely. Notably, Indonesia has seen a dramatic 200% increase in crypto adoption year-over-year, propelling it to third place in the index.
Caroline Ellison requests leniency
Caroline Ellison, former CEO of Alameda Research, is seeking leniency in her sentencing related to the FTX collapse. Her legal team has requested that the court consider time served and supervised release instead of a prison sentence, citing her "extraordinary cooperation" with prosecutors as a mitigating factor.
Binance subsidiary tokocrypto secures indonesian license
Tokocrypto, a Binance subsidiary, has obtained a full Physical Crypto Asset Trader (PFAK) license from Indonesia’s Commodity Futures Trading Regulatory Agency, Bappebti. This license allows Tokocrypto to operate as a fully authorized crypto trading platform in Indonesia, marking a significant milestone for Binance’s presence in the region.
