🌩️ A tiny storm in SBF's teacup
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Former FTX CEO is on trial over allegations of a $8 billion discrepancy in Alameda Research's financial records.
The testimony of former general counsel, Can Sun, alleges that Bankman-Fried sought a legal explanation for the financial gap. Sun's testimony revealed the inner dynamics of FTX during a liquidity crisis. Concurrently, FTX users are being targeted by a phishing scam offering expedited withdrawals, which comes amidst the ongoing legal issues. FTX's native token, FTT, despite these controversies, has seen a 1.5% increase in its price over the past 24 hours.
Coinbase is contesting the SEC’s authority in its final attempt to dismiss a lawsuit filed against it by the regulator.
The cryptocurrency exchange asserts in its October 24 court filing that the SEC has incorrectly classified certain cryptocurrencies as securities, exceeding its regulatory scope and attempting to control a wider range of investment activities, a power Coinbase argues is reserved for Congress. The dispute centers on the definition of “investment contracts” and whether the crypto transactions via Coinbase meet this criterion under the Howey test. This latest motion is a response to the SEC's earlier refusal to dismiss the case, maintaining that Coinbase had listed tokens that qualify as securities without proper registration. The impending court decision could lead to a judgment, dismissal, or a jury trial.
Cybercriminals are exploiting the Israel-Hamas conflict by setting up scam charities to trick users into sending donations to fake cryptocurrency addresses.
Security researcher Ax Sharma identified multiple fake accounts across social media platforms including Twitter, Telegram, and Instagram. An example is the "Gaza Relief Aid" Twitter account which falsely claims to be associated with a legitimate charity, "Islamic Relief Worldwide." Other cybersecurity experts, including Kaspersky, have identified over 500 similar scam email operations linked to the conflict. Donors are advised to follow trusted sources and donate through reputable organizations.
Digital Currency Group reported a 23% rise in Q3 revenue, reaching $188 million, even as crypto prices faced a decline.
This growth came after DCG paid back $225 million to its subsidiary, Genesis. A recent spike in Bitcoin's value and a legal victory for DCG’s Grayscale Investments against the US SEC have provided an additional boost to the firm. Despite the positive financials, DCG, along with Genesis and crypto exchange Gemini, are under legal scrutiny. They face a $1.1 billion lawsuit from the New York Attorney General for allegedly defrauding Gemini customers.
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