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United States authorities have charged two foreign nationals for laundering $73 million in cryptocurrency investment scams, commonly known as “pig butchering.” This development was announced by the US Department of Justice (DOJ) on Friday, with an indictment unsealed in the Central District of California against the two suspects.

$73 Million Crypto Laundering Scheme Busted

In a press release, the DOJ confirmed the identity of both suspects in a cryptocurrency laundering case to be two Chinese nationals named Daren Li and Yicheng Zhang, aged 42 years and 38, respectively. Li, a dual citizen of China and St. Kitts and Nevis, was apprehended on April 12 at Hartsfield-Jackson Atlanta International Airport and subsequently transferred to the Central District of California. Meanwhile, Zhang was arrested in California on Thursday in Los Angeles.

The two are accused of participating in a pig butchering scam, where fraudsters convince the victims to invest large sums of money in some purported cryptocurrency scheme. Once the investment is substantial, the scammers disappear with the funds, leaving the victims with significant losses.

Court documents reveal that Li and Zhang managed an international syndicate that laundered the proceeds of these crypto scams. Victims are tricked into transferring large sums to US bank accounts controlled by shell companies. Thereafter, these funds are moved to international and local accounts, as well as cryptocurrency exchanges in a bid to hide the source or transaction history of these ill-gotten gains. 

So far, over $73 million was transferred to shell accounts at Deltec Bank in The Bahamas, where it was converted into Tether (USDT). Additionally, a cryptocurrency wallet received over $341 million in virtual assets as part of this scam.

Commenting on this case, Deputy Attorney General Lisa Monaco said:

Cryptocurrency investment scams exploit the borderless nature of virtual currency and online communications to defraud victims.

Monaco also added:

These arrests — made possible through the assistance of our international and U.S. partners — reflect the Justice Department’s ongoing commitment to disrupting the entire cybercrime ecosystem and stopping fraud across all financial markets.

Currently, Li and Zhang face charges of conspiracy to commit money laundering and six counts of international money laundering. If found guilty, they could each face a maximum penalty of up to 20 years in prison per count.

Related Reading: April Marks A Record Low In Crypto Hacks And Scams: A Sign Of Strengthening Security?

Market Overview

According to data from Tradingview, the total cryptocurrency market cap currently hovers around $2.366 trillion with an 8.05% increase in the last week.

The burgeoning world of cryptocurrency continues to grapple with issues of transparency, with a recent donation raising eyebrows across the digital currency landscape. Notcoin, a brand new play-to-earn game built on the Telegram messaging platform, sent a hefty $6.8 million worth of its own tokens (NOT) to Telegram founder Pavel Durov.

While framed as a gesture of appreciation for Telegram’s contributions to the crypto space, the unorthodox move has triggered a wave of suspicion within the crypto community.

Lack Of Transparency Breeds Insider Trading Fears

The core of the controversy lies in Notcoin’s lack of clear communication. When the donation was announced, the project’s team failed to disclose a crucial detail: donors who participated in the “thank you” campaign would receive double the amount of NOT tokens they contributed. This bombshell revelation has left many users feeling duped.

1,030,383,291.36 Notcoin ($6.8M USD) were sent as donation to Pavel Durov and Telegram.

Thanks for everything you guys built.https://t.co/ZaBgB22yyg pic.twitter.com/8gmNjbBs3s

— Notcoin Ø (@thenotcoin) May 17, 2024

Critics point out that this lack of transparency opens the door for potential insider trading. Team members privy to this information could have strategically positioned themselves to benefit from the doubled rewards. Essentially, they could have inflated their NOT holdings with zero risk, leaving regular participants at a disadvantage.

The situation is further muddied by the curious timing of Durov’s praise for Notcoin. On the very same day he received the multi-million dollar donation, Durov lauded the token as an “amazing success story.” This synchronicity has fueled speculation that the donation might not have been a simple act of gratitude, but rather an undisclosed promotional payment.

Crypto Community Demands Clarity

The Notcoin fiasco serves as a stark reminder of the importance of transparency in the crypto world. The industry has a well-documented history of operating in the shadows, and this incident highlights the need for clearer communication and well-defined protocols, especially when it comes to significant financial transactions.

Notcoin: Is It Legit?

The community is demanding answers. Many are questioning the legitimacy of NOT’s play-to-earn model, which involves users “mining” NOT tokens through repetitive clicking. Skeptics point out the similarities to memecoins, a category notorious for its high volatility and frequent crashes. Notcoin’s own value has indeed dropped significantly since its launch, mirroring the recent decline of Bitcoin.

While the donation may have garnered Notcoin some fleeting attention, the project’s long-term prospects remain uncertain. The controversy surrounding the Durov donation casts a long shadow, and the success of a game built on repetitive clicking remains to be seen. Only time will tell if Notcoin is a genuine innovation or simply a glittering gimmick designed to lure unsuspecting investors into murky waters.

Featured image from Tech.co, chart from TradingView

In a significant move towards enhancing digital currency use, Hong Kong residents can now set up personal digital yuan or e-CNY wallets, as announced by the Hong Kong Monetary Authority (HKMA).

This development, part of a collaboration with the People’s Bank of China (PBoC), marks a milestone in “facilitating” cross-border transactions between Hong Kong and Mainland China.

Introducing these wallets is expected to expand the usage of China’s digital yuan, or e-CNY, supporting more organized and direct payments without needing a Mainland bank account.

Expanding Digital Yuan Use

The HKMA revealed that this initiative aims to broaden the scope of digital currency use among residents and “enhance the interoperability” of financial systems across borders. Residents can easily set up their e-CNY wallets by using their Hong Kong mobile phone numbers.

Furthermore, the supported infrastructure, particularly the Faster Payment System (FPS), allows users to top up their e-CNY wallets using 17 retail banks in Hong Kong. However, the system was initially set to prioritize merchant payments in the mainland over person-to-person transfers within Hong Kong.

Notably, as disclosed in the report, this expansion is part of the “three connection, three facilitation” initiative announced by the PBoC earlier in the year.

With these developments, the HKMA has noted that it is working to “expand the applications of e-CNY and enrich the range of functionalities of the e-CNY wallet available to Hong Kong residents.”

HKMA’s Plans For e-CNY

Eddie Yue, the HKMA’s chief executive, emphasized the strategic importance of this pilot program. He noted that Hong Kong is “pioneering” in facilitating cross-boundary digital yuan use, “enhancing the payment efficiency for Hong Kong residents” in the Mainland.

Yue further disclosed that the collaboration aims to increase e-CNY’s applications gradually and “enrich the functionalities” available to residents. In addition, there are plans to promote e-CNY acceptance by more retail merchants in both regions, improving the overall user experience.

The efforts extend beyond personal use; corporate use cases are also being explored to facilitate cross-boundary trade settlements. The aim is to upgrade the e-CNY wallet to higher tiers through “real-name verification” and enhance payment interoperability.

This is said to provide a more convenient experience for individuals and merchants and promote the interconnectivity of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The report noted:

The HKMA will continue working with the DCI to explore upgrading the e-CNY wallet to higher tiers through real-name verification and enhancing the interoperability in payments so as to provide more convenient user experiences, whether for individuals or merchants.

featured image from VCG via Getty Images, Chart from TradingView

In a Brooklyn federal court on Thursday, crypto personality Thomas John Sfraga, also known as “TJ Stone”, pleaded guilty to wire fraud charges for defrauding over a dozen victims out of more than $1.3 million.

Fictitious Scheme Exposed

According to the US Department of Justice, from 2019 to 2022, Sfraga “falsely” presented himself as the owner and principal of several businesses, including Vandelay Contracting Corp. and Build Strong Homes LLC. He also claimed to be a “serial entrepreneur” with experience in real estate development, media relations, podcasting, and cryptocurrencies.

In this capacity, Sfraga allegedly convinced victims, many of them located in Brooklyn, Staten Island, and Long Island, to loan him money or invest in what turned out to be fraudulent schemes.

This included promising high returns of up to 60% within three months for investments in a fictitious cryptocurrency “virtual wallet.”  US Attorney Breon Peace stated:

For years, Sfraga brazenly lied to friends, neighbors, and investors to swindle over $1.3 million of their hard-earned life savings. This Office will continue to hold fraudsters accountable and achieve justice for victims throughout the Eastern District of New York and the United States.

Crypto Schemer Faces 20 Years In Prison

On one occasion, Sfraga reportedly convinced a victim to lend him $100,000 in cash as start-up costs for a “non-existent” major construction project. In reality, the US DOJ alleges that Sfraga simply converted the funds for his expenses to pay off earlier victims and business associates.

Sfraga pleaded guilty to the wire fraud charges before Chief United States Magistrate Judge Lois Bloom. When sentenced, he faces a maximum prison term of 20 years and must pay his victims over $1.33 million in restitution.

The guilty plea was announced by US Attorney Breon Peace and James Smith, Assistant Director-in-Charge of the FBI’s New York Field Office. 

As of the latest market update, cryptocurrency has seen a notable uptick, with surging prices across the largest digital assets.

Bitcoin (BTC), the flagship cryptocurrency, has regained the $67,000 mark for the first time since late April, rising nearly 10% over the past week. Ethereum (ETH), on the other hand, has been one of the biggest winners over the past 24 hours, rising 5.5% to a current trading price of $3,111.

Furthermore, the total cryptocurrency market capitalization has risen by 3% in the past 24 hours, currently at a $2.37 trillion, showcasing a renewed sense of bullish sentiment reverberating throughout the overall digital asset ecosystem.

Featured image from Shutterstock, chart from TradingView.com

The world’s largest cryptocurrency exchange, Binance, has been embroiled in a complex legal battle with Nigerian authorities over allegations of money laundering, tax evasion, and currency speculation.

Two senior Binance executives are at the center of the dispute: Tigran Gambaryan, the head of financial crime compliance, and Nadeem Anjarwalla, the regional manager for Binance in Africa. The Nigerian government has charged both men with a litany of financial crimes.

Binance Embroiled In High-Stakes Legal Battle

The legal saga began earlier this year when Gambaryan traveled to Nigeria to participate in talks with the government about Binance’s operations in the country. However, upon arrival, he was promptly arrested and incarcerated.

A Nigerian court has dealt another blow to Binance, refusing to grant Gambaryan bail as his money laundering trial begins.

According to local media reports, Justice Emeka Nwite of the Federal High Court in Abuja cited Gambaryan’s flight risk as the primary reason for denying bail. 

The prosecution argued that Gambaryan, who holds both American and Armenian citizenship, could easily flee the country if released. They also noted his colleague Anjarwalla’s escape from custody in March, which they claimed was suspicious.

Nigeria Ramps Up Crackdown

Binance’s legal troubles in Nigeria stem from a broader crackdown by the government on the cryptocurrency platform. Authorities have accused the exchange of facilitating over $26 billion in illicit funds transfers without proper oversight. 

The Central Bank of Nigeria (CBN) has alleged that Binance engaged in tax evasion, currency speculation, and money laundering, totaling $35.4 million.

Anjarwalla, who served as Binance’s regional manager for Africa, was also charged alongside Gambaryan. However, in March, he escaped from the custody of Nigeria’s National Security Adviser, Nuhu Ribadu. The Nigerian government traced him to Kenya, where local authorities reportedly arrested him.

The legal battle between Binance and Nigeria highlights the growing regulatory scrutiny facing cryptocurrency exchanges globally. As digital assets become more mainstream, governments are increasingly increasing efforts to monitor and control the flow of funds through these platforms.

For Binance, the stakes in this case are high. Conviction of its executives could result in hefty fines and potential jail time and further damage the exchange’s reputation and ability to operate in one of Africa’s largest economies. 

Over the past three days, Binance’s native token, BNB, has been trading within a range of $570 to $583. This price movement comes as the broader cryptocurrency market appears to have regained its bullish momentum, with the largest digital assets showing signs of strength.

Featured image from Shutterstock, chart from TradingView.com 

A prominent figure in the crypto space revealed he has sold all his Bitcoin (BTC) holdings in favor of Altcoins. In an X post, the market expert claimed to still have faith in the flagship cryptocurrency and explained what he did and the reasons why.

Expert Takes A Risk To Get More Bitcoin

On Thursday, renowned crypto analyst Michaël van de Poppe announced to his X followers that he had sold all his Bitcoin holdings. He prefaced his explanation by stating that he had not lost his faith in BTC.

The expert explained he is not expecting the largest cryptocurrency by market capitalization to be “topped out for this cycle.” Additionally, he clarified that he has not become a “complete believer in gold.”

 

Van de Poppe’s annoucement. Source: Michael van de Poppe on X

Van de Poppe’s goal is to buy back more Bitcoin later in the year since “It’s a bull cycle; we can’t deny that.” However, he explains that the simplicity of the four-year cycle and the impact of “Halving” events will reduce over time as Bitcoin becomes a mature asset worldwide and institutions prioritize “risk appetite in their portfolios.”

According to the analyst, “It’s all about risk,” and institutions will de-risk when liquidity dries up. As a result, this cycle may be the final “easy” cycle to make big profits through altcoins.

He asserted that he must take a risk as a 31-year-old entrepreneur who has been surviving several bull and bear markets since 2017. To obtain more Bitcoin, van de Poppe decided to trade Altcoins within the Web 3.0 ecosystem, which he considers the riskiest path:

“I know the tides, and I know that to get a large return, you’ll need to get more knowledge and dare to take the risk against all odds and sentiment. That’s where I fancy it the most and where I’ve had periods when things went south. Can’t deny that.”

Altcoins Poised For Big Returns

Further explaining why he chose this path to earn back his Bitcoin, the analyst stated that “altcoins have been crushed unreasonably hard” during this cycle. Due to this, van de Poppe is considering several events that could make or break his bet on altcoins.

First, he listed the slim chances of an Ethereum (ETH) spot Exchange-Traded Fund (ETH) being approved alongside the Securities and Exchange Commission (SEC)’s crackdown on ETH. The clarification on the status of the second-largest cryptocurrency could “make a significant U-turn.”

Second, the results of the US House of Representatives vote regarding the FIT21 bill could provide a clearer regulatory framework for the crypto industry in the US. Lastly, the outcome of the XRP lawsuit, which he believes will result in the asset not being classified as a security, could also positively affect the market.

Van de Poppe stated that the upside of his bet cannot be denied. Nonetheless, he recognizes that the downside is relatively huge. The expert explained he’s currently 20% down on the overall investment in two weeks, claiming that he’ll be fine with the possibility of losing 50-80% of his investment.

For the analyst, the chances of making a 300-900% return in the coming 6 to 12 months outweigh the risks. With the possibility of earning between 900% and 4500% in the next one to two years, van de Poppe is “happily allocating entirely towards altcoins.”  He closed his post optimistically stating, “The bull cycle will be glorious.”

In a move that could have significant implications for the global cryptocurrency market, the US-based crypto exchange Kraken is “actively reviewing” plans, including removing support for Tether’s USDT stablecoin within the European Union (EU).

The potential delisting comes as the EU prepares to implement a new regulatory framework, Markets in Crypto-Assets (MiCA), set to take effect in July. According to a Bloomberg report, the upcoming EU rules are expected to impact USDT, the world’s most-traded cryptocurrency.

Kraken Considers Tether’s USDT Delisting In Europe

MiCA, which the European Banking Authority (EBA) is still finalizing, will restrict the sale of stablecoins to EU investors. 

Traders widely use stablecoins like USDT to move digital assets between exchanges or to store wealth away from token price volatility. Marcus Hughes, Kraken’s global head of regulatory strategy, stated:

We’re absolutely planning for all eventualities, including situations where it’s just not tenable to list specific tokens such as USDT. It’s something that we’re actively reviewing, and as the position becomes clearer, we can take firm decisions on that.

Tether, the issuer of USDT, acknowledged Kraken’s remarks, stating that the firm expects exchanges to “rightfully focus on EUR liquidity for European customers while maintaining USDT as an on-ramp off-ramp solution.” 

However, Tether’s CEO, Paolo Ardoino, has previously expressed concerns about certain aspects of MiCA’s requirements, and the company has no plans to be regulated under the new rules in the medium term. 

The potential delisting of USDT on Kraken’s European platform follows a similar move by another major crypto exchange, OKX, which removed EU users’ ability to buy or sell other cryptocurrencies using USDT earlier this year. Hughes further claimed:

It’s an evolving picture. What we’re clear on is that the scope of the type and number of stablecoins that are offered today in Europe are unlikely to be able to be offered going forward. At some point in the future, there’ll be a cut off at which that won’t be possible.

Kraken Evaluates European HQ Options

For further context, the upcoming MiCA regulations will require issuers of asset-referenced and e-money tokens, like USDT, to hold a license from a national financial authority in at least one EU member state by June 30. 

Issuers will also be mandated to meet “higher standards” on corporate governance, conflicts of interest, and reserve management, such as holding at least a third of all funds at an independent credit institution.

Per the report, as Kraken navigates the changing regulatory landscape, the exchange is also in the “advanced stages” of selecting its post-MiCA European headquarters, with France and Ireland emerging as popular destinations among its rivals, such as Coinbase, Binance, and Gemini.

However, if Kraken moves forward with delisting Tether’s USDT stablecoin from its European platform, it could have significant implications for the exchange’s users and customers in the EU. 

Kraken’s European customers would no longer be able to directly trade or transact using USDT, potentially leading to decreased liquidity, wider bid-ask spreads, increased price volatility, and lower trading volumes. 

This could create inconvenience and disruption for customers accustomed to using Tether’s stablecoin, as they may need to explore alternative stablecoins like Circle’s USDC or fiat on-ramps, adding complexity to their cryptocurrency transactions. 

Featured image from Shutterstock, chart from TradingView.com

Crypto analyst Crypto Kaleo has laid out a bullish narrative for Dogecoin (DOGE). Based on his analysis, the foremost meme coin may make a parabolic run to the upside soon enough. The analyst also alluded to history to reaffirm that this rally will definitely happen. 

“It’s Almost Time” For A Good Dogecoin Pump

Crypto Kaleo remarked in an X (formerly Twitter) post that it is almost time for Dogecoin to rally significantly, as he stated that the foremost meme coin is “overdue for a good pump.” The crypto analyst made reference to a DOGE and GME chart while reminding his followers that it was GameStop “that led the way back in early 2021.” He claimed that it wasn’t until after GME topped that Dogecoin started pumping. 

Indeed, the GameStop short squeeze is believed to have ushered in the meme season, leading to significant price surges for Dogecoin and other meme coins like Shiba Inu (SHIB). Besides Dogecoin’s correlation with GameStop, the analyst suggested that Dogecoin is also due to a pump because the “DOGE/BTC ratio still looks primed for a move higher.”

As to when this Dogecoin rally is likely to happen, Kaleo mentioned that investors might have to “wait a few days, maybe a couple of weeks, for the Doge move to start” because he doesn’t think GME has topped yet. He also revealed that he is well positioned for this move as he has had “a bag for ages” and will continue accumulating the meme coin.

In the meantime, Kaleo remarked that a DOGE dip wouldn’t be surprising and might even be necessary for the imminent pump. He alluded to a Dogecoin pump in 2021 and noted that the meme coin retested a lower range before it eventually ripped that time, suggesting that a similar move could play out again this time around. Kaleo is also among crypto analysts who believe that Dogecoin could rise to as high as $1 in this bull run. 

A DOGE Breakout Is Near

Crypto analyst World of Charts recently noted that Dogecoin was on the verge of another breakout. According to him, a successful breakout will see the meme coin enjoy a 100% move as it rises to $0.3. Crypto analyst Jaydee also echoed a similar sentiment, highlighting DOGE’s monthly chart, which suggested that a breakout is imminent. Jaydee claimed that “Dogecoin will be life-changing for some very soon.”

Meanwhile, crypto analyst Crypto Scient predicted that a bullish reversal for DOGE could trigger a meme coin mania like the one in February. Going by Kaleo’s prediction, this meme coin mania could be similar to what happened in 2021, when meme coins enjoyed significant price surges after GameStop’s stock tops. 

At the time of writing, Dogecoin is trading at around $0.15, down over 3% in the last 24 hours, according to data from CoinMarketCap. 

On-chain data shows the Bitcoin adoption rate has slowed to the lowest since July 2018. Here’s what could be behind this trend.

Bitcoin New Addresses Count Has Plunged To Multi-Year Lows

According to data from the market intelligence platform IntoTheBlock, an interesting trend has appeared in the Bitcoin New Addresses metric. The “New Addresses” indicator keeps track of the total number of new addresses created on the BTC network every day.

When this metric has a high value, it suggests many new addresses are currently popping up on the blockchain. Such a trend could indicate that new investors are entering the cryptocurrency.

However, this isn’t the only reason why the metric would register an increase, as old investors who had exited earlier could also contribute to the indicator’s value when they return. Holders making multiple wallets for privacy purposes would also naturally influence the metric.

In general, though, all of these are happening at once to some degree, so on the net, some adoption would occur for the asset. Thus, a high number of new addresses can be a bullish sign in the long term.

On the other hand, the indicator’s low value potentially suggests the cryptocurrency isn’t currently attracting fresh investors. Naturally, this would possibly imply a bearish outcome for the asset.

Now, here is a chart that shows the trend in the 7-day average New Addresses metric for Bitcoin over the history of the asset:

As the above graph shows, the 7-day average of Bitcoin New Addresses has declined this year. This suggests that fewer and fewer new hands are potentially entering the asset.

Following the latest decrease, the metric’s value has dropped to just 276,000, the lowest since July 2018. The chart shows that a sharp cooldown in new addresses has generally coincided with the end of bullish periods.

Thus, going by this pattern, the latest rally may have run out of steam. There can, however, be alternative reasons for the recent trend rather than just a lack of interest among investors.

A big event for Bitcoin at the start of the year was the approval of spot exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC).

Spot ETFs are investment vehicles that provide an alternate route of gaining exposure to the cryptocurrency in a format that’s more familiar to traditional investors.

It’s possible that the new users these days simply prefer to buy into spot ETFs instead. Since this adoption is happening off-chain, it makes sense why an on-chain metric wouldn’t be able to detect it.

BTC Price

At the time of writing, Bitcoin is trading at around $66,100, up more than 5% over the past week.

Ethereum is a legacy chain that has scaled over time to address the needs of the ever-demanding global user base. To relieve the mainnet of the deluge of transactions, more layer-2 platforms have sprouted.

They are cheaper to transact on and scalable, allowing users to deploy intensive decentralized applications that won’t be feasible on the base layer.

Ethereum Layer-2s Are A Success, But There Is A Problem

According to L2Beat, layer-2 platforms on Ethereum currently manage over $39 billion in total value locked (TVL). Even so, Nikita Zhavoronkov, a lead developer at Blockchair, is concerned and thinks layer-2s are a “huge legal liability waiting to happen.”

Taking to X, Zhavoronkov argues that layer-2 protocols on Ethereum and Bitcoin are vulnerable to regulator crackdown. In the developer’s assessment, these platforms resemble money service businesses (MSBs), considering how they are designed to operate. Since they are not regulated, the developer said they might be operating illegally.

Top of the list, Zhavoronkov argues that most existing layer-2 solutions are not truly decentralized. They point to using multi-signature contracts or “emergency councils” controlled by limited groups as evidence of centralized control. 

Moreover, the developer highlighted the custodial nature of many layer-2s. Users do not directly control user funds based on how these scalable platforms operate. The analyst says this tinge of centralization presents a vulnerability if regulators target these entities.

Zhavoronkov adds that though layer-2 platforms are enablers, working from a trustless base, they function as for-profit businesses, generating revenue from transaction fees. Because some of them, like Optimism and Arbitrum, issue tokens, revenue accrued can impact token prices.

The developer contends that this is why layer-2 platforms are no different from traditional companies than truly decentralized platforms.

More Headwinds For ETH, United States SEC Reported Investigation

Given their mode of operation and model, Zhavoronkov’s assertion that layer-2 solutions could be classified as MSBs under United States laws is a concern. Such a classification could subject these protocols to stringent regulations, compliance requirements, and potential sanctions. 

This not only threatens to stifle innovation but also has the potential to hamper Ethereum’s scalability severely.

While some have dismissed Zhavoronkov’s viewpoint as “distorted,” the fact that Ethereum is reportedly under investigation by the United States Securities and Exchange Commission (SEC) adds a layer of complexity to the situation. 

Analysts say the SEC’s classification of ETH as a security rather than a commodity like BTC could further delay the approval of spot Ethereum exchange-traded funds (ETFs).

XRP is one of the cryptocurrencies that has persevered in the market and managed to retain a strong following despite performing poorly in the last few years. The legal battle between Ripple and the United States Securities and Exchange Commission (SEC), which is the major culprit behind this poor performance, has yet to end. However, this has not deterred the bullish sentiment among investors, who still believe that the altcoin’s price is destined for double digits.

Market Expert Says Selling XRP At $10 Is A Bad Idea

Although the XRP price is still trending at around $0.5 right now, the expectations that the altcoin will see a monumental surge are still high. One of those who believes that this will happen is James Jay, an XRP community member and the host of the Crypto4Life YouTube channel.

In a recent video, Jay revealed his expectations for the XRP price, saying that he expected it to eventually cross $10. However, the prediction was not the most interesting thing that came out of the video but rather the advice the host gave to investors.

Jay explains that he understands that the XRP price going to $10 from here would be life-changing for a lot of people. But he still encourages them not to sell at that price. According to the analyst, XRP investors will end up regretting selling their tokens at that price because he expects it to go much higher.

The analyst points to a Valhill Capital estimate for the future value of XRP tokens, which came in an extremely wide range of $9.81 and $513,000. However, Jay is undeterred by this wide margin and explains that even if the estimates end up being only 1% right, it would still put the price in the ballpark of even $100.

To put this in perspective, a $100 price target from here is a 20,000% increase or a 200x increase. This would mean that the XRP market cap would be in the trillions, a feat which has only be achieved by Bitcoin, the pioneer cryptocurrency, so far.

Nevertheless, Jay encourages investors to look beyond the quick gains and have “a solid plan” so they can make the most returns on their investments. “You should have strategic levels of where you’re cashing out and I wouldn’t go all out at a certain dollar,” the YouTuber stated.

Jay is not the only one that sees the XRP price crossing $10 and even rising to triple-digits. Crypto analyst and community member JackTheRippler has said that he expects the altcoin’s price to cross $100 once the Ripple vs. SEC case is over. Another analyst BarriC also revealed that they expect the altcoin to reach $100 in less than 10 years.

Former US President Donald Trump has found himself at the epicenter of a cryptocurrency-fueled windfall.

Data from market intelligence firm Arkham Intelligence reveals that Trump’s cryptocurrency portfolio has surged by a staggering 4,000% – a gain largely driven by the meteoric rise of the “Save America” meme coin, affectionately dubbed “TRUMP.”

According to the report, Trump’s affiliated crypto wallet has been the recipient of multiple airdrops of the TRUMP token, the latest of which occurred just 30 minutes prior to the analysis.

These generous airdrops have propelled the wallet’s value from a modest $7.4 million to a staggering $9 million in a single day, with the TRUMP meme coin alone accounting for a remarkable $1.30 million of that increase.

From Humble Beginnings To Crypto Dominance

Trump’s crypto journey has been nothing short of remarkable. As of January 1st, his wallet held a mere $142,500 worth of TRUMP tokens and $778,000 in Ethereum (ETH).

However, in the months since, his crypto empire has expanded exponentially, with the wallet now boasting nearly 580,000 TRUMP tokens valued at $5.8 million, and his ETH holdings growing to $1.30 million.

The marketing director for the TRUMP meme coin, Steven Steele, expressed that this is a clear indicator of the support from Trump’s fan base and the broader crypto community.

It’s evident that he has fully embraced cryptocurrency, and this has undoubtedly contributed to the surge in popularity of the TRUMP token.

Trump Token: Political Influence Meets Crypto Speculation

Trump’s crypto windfall is not merely a financial anomaly; it’s a testament to the interplay between political influence and the speculative nature of the cryptocurrency market.

The former president’s pro-crypto stance, which includes a pledge to allow Americans to use Bitcoin for everyday transactions if re-elected, has galvanized his supporters and the broader crypto community alike.

The report notes that this unprecedented growth in Trump’s crypto holdings underscores the powerful influence that high-profile figures can wield over the cryptocurrency market.

As the 2024 election approaches, Trump’s crypto strategy and the support from his base could set a precedent for other political figures to leverage digital assets in their campaigns.

The TRUMP token’s increase in value highlights the unpredictable and speculative character of the crypto ecosystem, particularly when it comes to politically sensitive or meme-based assets.

Featured image from Getty Images, chart from TradingView

Coinbase Research has issued a detailed report, written by David Han, emphasizing that the likelihood and timing of a US spot Ethereum (ETH) exchange-traded fund (ETF) approval are significantly underestimated by the market. The potential approval of such an ETF is poised to bring profound changes to Ethereum’s market dynamics.

The Case For A Spot ETH ETF Approval

The report delves into the critical importance of a spot ETH ETF, drawing parallels with the successful approval of spot BTC ETFs in the US. The introduction of spot Bitcoin ETFs has provided regulatory clarity and attracted significant capital inflows, reinforcing Bitcoin’s status as a macro asset. Similarly, a spot ETF would open Ethereum to the same capital pools that currently favor Bitcoin, fundamentally altering investment patterns within the crypto ecosystem.

Han underscores the core argument for a spot ETH ETF: the high correlation between CME ETH futures and spot prices. This correlation was a key factor in the approval of spot BTC ETFs.

“The correlation between the CME futures product and the spot exchange rates is sufficiently high such that CME’s surveillance can be reasonably expected to detect misconduct in the spot market,” Han states. This reasoning is expected to be equally applicable to Ethereum, given that the CME ETH futures launched just a month before the correlation study period used for BTC ETF approvals.

Despite the significant market potential, the report highlights the differences to Bitcoin and recognizes the regulatory uncertainties, particularly around Ethereum’s proof-of-stake (PoS) mechanism. The complexities of staking—such as slashing conditions, validator differences, and unstaking liquidity risks—introduce additional layers of consideration for regulators. “The complexities of staking present unique challenges, but these should not impact the status of unstaked ETH,” Han notes.

Market sentiment, as reflected in trading platforms like Polymarket, currently prices the odds of a spot ETH ETF approval by May 31, 2024, at 16%. However, Coinbase’s analysis suggests these odds are significantly higher, closer to 30-40%. This divergence indicates that the market may not fully appreciate the potential regulatory and market shifts in favor of Ethereum.

Han also points out that even if the initial deadline of May 23, 2024, encounters a rejection, there remains a high likelihood that litigation could reverse such a decision. “Crypto is becoming an election issue, and the SEC may not be willing to expend the political capital necessary to support a denial,” Han argues, suggesting that political dynamics could also play a role in the regulatory process.

The approval of a spot ETH ETF would not only align Ethereum with Bitcoin in terms of regulatory clarity and access to institutional capital but also disrupt traditional capital flow patterns within the crypto market. Historically, capital has rotated from Bitcoin to Ethereum and then to higher-beta altcoins. A spot ETH ETF would potentially streamline this flow, directly channeling institutional investments into Ethereum.

This approval would also mitigate one of the largest overhangs for ETH, especially in a challenging regulatory environment. “The potential approval of a spot ETH ETF removes a significant barrier, opening up ETH to new capital inflows and regulatory clarity,” Han emphasizes.

Ethereum’s Long-Term Positioning

Beyond the immediate implications of a spot ETF, Coinbase’s report delves into Ethereum’s strong long-term positioning. Despite facing competition from other layer-1 networks like Solana, Ethereum’s advantages—such as the maturity of its developer ecosystem, the proliferation of its EVM platform, and its role as DeFi collateral—remain unparalleled, according to Han.

The growth of Ethereum layer-2 solutions and the reduced ETH burn post-EIP-1559 are highlighted as factors enhancing its value proposition. Additionally, Ethereum’s historical trading patterns reveal its dual role as both a store-of-value and a technology-token, adding to its unique market positioning.

In conclusion, Coinbase’s analysis presents a compelling case for the near-term approval of a spot ETH ETF in the US. The report suggests that market participants may be underestimating the odds and timing of such approval, leaving room for potential upside surprises.

“We think the market may be underestimating the timing and odds of a potential approval, which leaves room for surprises to the upside,” Han remarks. Moreover, he predicts that ETH may “have the potential to surprise to the upside in the coming months. ETH does not appear to have major sources of supply-side overhangs such as token unlocks or miner sell pressure.”

At press time, the ETH price stood at $3,028.

The United States Securities and Exchange Commission (SEC) has experienced another embarrassing setback, as an anti-crypto bill proposed by the regulator has been completely shut down by the United States Senate. Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has openly celebrated this outcome, marking it a noteworthy victory for the cryptocurrency industry. 

SEC’s Anti Crypto Bill Falters

 On March 31, 2022, the US SEC proposed a Staff Accounting Bulletin No.121 (SAB121), requiring financial institutions responsible for the crypto assets of clients to record or register these digital assets as liabilities on their balance sheets. This bill, viewed as a threat to the decentralized nature of the cryptocurrency industry and US regulatory custodial services, was labeled by Alderoty as an “unauthorized overreach” by the SEC Chair, Gary Gensler. 

In an almost unanimous decision with Bipartisan support, the Senate and the House of Representatives voted vehemently against the controversial SAB-121 proposal. 

Paul Grewal, the Chief Legal Officer of crypto exchange, Coinbase, disclosed in a post on X (formerly Twitter) that the Senate voted for repeal, achieving a supermajority with approximately 60 yes votes and an added rebuke for the SEC’s “overreach and disdain for the federal administrative law.”  

Furthermore, Alderoty commemorated the Senate’s rebuff of the SEC’s anti-crypto bill, emphasizing that Gensler’s attempt to control the cryptocurrency industry was getting out of hand. He also stated that the regulator’s ongoing efforts to govern an industry beyond its purview would not be tolerated anymore, highlighting that technological innovation should not be a partisan issue.

MicroStrategy’s Co-founder and former Chief Executive Officer (CEO), Michael Saylor also commented on the SEC’s revoked bill in an X post, celebrating the Senate’s bipartisan decision.

“Wall Street wants Bitcoin, the House of Representatives wants Bitcoin, and now the Senate wants Bitcoin,” Saylor stated. 

Currently, the failure of the SEC’s proposed bill represents a significant blow to the regulator’s aggressive stance on cryptocurrency regulation. This comes on the heels of the agency’s legal battle with Ripple and a series of enforcement actions and lawsuits against cryptocurrency companies such as UniSwap, Coinbase, Binance, MetaMask and more. 

Moreover, the nullified bill highlights the growing influence of the crypto industry in both technological and political circles, securing recognition among lawmakers and traditional banking institutions in the US. 

Pro-Ripple Lawyer Calls SEC Actions “Regulatory Insanity”

In another X post, John E. Deaton, a pro-XRP lawyer and supporter, has described the SEC’s aggressive enforcement actions on the crypto industry as “regulatory insanity.” He disclosed that the US SEC was being used as a weapon by Senator Elizabeth Warren, a crypto antagonist to support her political agendas. 

As the spokesperson for the SEC’s SAB-121 bill, Warren had expressed support for the anti-crypto proposal, arguing that by approving the rule, investors would have better protection against risks associated with cryptocurrency volatility. 

Deaton has disclosed that the SEC’s attempt to “protect investors” was laughable given that the regulator has caused more financial distress to the investors it claims to protect. He has also stated that Warren was placing her agendas above investor protection. 

Retail investors flocking to the digital currency market are finding themselves bombarded with advice from social media crypto influencers. These self-proclaimed gurus promise insights and recommendations, but a new study suggests their pronouncements may be more flash than substance.

Crypto Influencers: The Impact Of Tweets

The research, conducted by a team at leading universities, analyzed the impact of tweets from over 180 crypto influencers on follower behavior and token prices.

The results paint a concerning picture. While tweets were found to trigger short-term price increases, averaging nearly 2% within the first two days, these gains quickly evaporated. In fact, the study found a cumulative return drop of nearly 7% within a month of influencer endorsements.

The researchers observed a distinct pattern. According to Dr. Kenneth Merkley, co-author of the study, influencer tweets could create a temporary price surge, but this was often followed by a significant decline, suggesting the buying frenzy wasn’t based on long-term fundamentals.

The findings resonate with real-world examples. A recent report, for example, shows the ill-fated CryptoZoo project, spearheaded by YouTuber Logan Paul, which attracted millions in investments before facing accusations of being a “rug pull” – a scheme where developers abandon a project after taking investor money.

Crypto Influencer Recommendations Often Lead To Losses: Study

Recommendations from crypto influencers often result in losses, according to scientists from three universities. Chinese journalist Colin Wu reported that, on average, positions opened based on signals from crypto influencers on X (formerly Twitter) showed a decline of 2.20% after 10 days and 6.50% after 30 days.

This data comes from researchers at Indiana University, Harvard Business School, and Texas A&M University, who analyzed 36,000 tweets from prominent crypto influencers. The study covered recommendations for 1,600 different assets.

Top 25 Crypto-Influencers by Number of Mentions pic.twitter.com/6c9lEucdZj

— Wu Blockchain (@WuBlockchain) May 16, 2024

Celebrity Hype And The SEC Steps In

The rise of influencer marketing in the crypto space hasn’t gone unnoticed by regulators. The report highlights the European Commission’s recent complaint regarding potentially misleading crypto promotions on social media.

Investors Beware

Additionally, the new European Markets Crypto-Assets (MiCA) regulations could hold influencers accountable for market manipulation through their endorsements.

In the US, the Securities and Exchange Commission (SEC) has already cracked down on celebrities promoting unregistered cryptocurrencies. The research mentions high-profile cases like Kim Kardashian and Floyd Mayweather Jr. facing legal action for failing to disclose payments for promoting the EthereumMax token, which subsequently crashed in value.

The study underscores the crucial role of responsible investing in the volatile crypto market. Social media influencers can be entertaining, but they shouldn’t be the primary source of investment advice.

Featured image from Getty Images, chart from TradingView

Pro-XRP attorney and well-known cryptocurrency supporter John E. Deaton has disclosed the primary motivation for his Senate run in the United States, highlighting the critical need for improved protections for citizens and retail investors. Deaton, who rose to fame for his outspoken criticism of regulatory overreach and steadfast support of XRP, feels that the legislative framework now in place under US Senator Elizabeth Warren is insufficient to protect common investors in the quickly developing digital asset market.

Pro-XRP Lawyer Blasts Elizabeth Warren

According to John E. Deaton, US Senator Elizabeth Warren has failed to deliver a safe environment for working families, retail investors, and consumers during her tenure. Warren’s failure to protect these people in the same manner that she does for the disgraced Federal Deposit Insurance Corporation (FDIC) chairman Martin Gruenberg is the major reason why the pro-XRP lawyer is running for the US Senate seat.

In a scathing report published on May 7, it was found the FDIC, under the management of Gruenberg, committed pervasive sexual harassment, bullying, and discrimination. 

The report read:

As detailed in the report, the independent review found that, for far too many employees and for far too long, the FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct. It further found that management’s responses to allegations of misconduct, as well as the culture and conditions that gave rise to them, have been insufficient and ineffective.

The independent investigation included specific examples of managers sending their staff members pictures of themselves naked or taking them to brothels while on business vacations.

About 10% of the workforce reported these incidents or other instances of personal wrongdoing at the firm, including Gruenberg’s own actions. Despite the embarrassing report, Gruenberg, who has been working with the firm since 2005, is still unwilling to step down as the company’s head. 

Warren has allegedly been supporting the FDIC chair, as Deaton noted that following Greunberg’s nomination by US President Joe Biden, Warren expressed her approval of the decision, basically advocating Gruenberg as a champion for customers.

During the vote which was between Martin Gruenberg and Adrienne Harris, Warren voted in favor of Gruenberg. She said that Harris is too moderate on cryptocurrency and that Gruenberg is a radical, calling Harris a savvy centrist.

Also, it is noteworthy that since the allegations, Warren has reportedly been spearheading an effort to keep Gruenberg safe behind closed doors. Her efforts allegedly aided the FDIC Chair in preparing for this week’s congressional hearings, where he was expected to face intense questioning about the claims.

Political Agenda Over Transparency

So far, the pro-XRP attorney has slammed Warren, claiming that the US Senator lacks proper leadership qualities. “Leadership is about accepting that sometimes you get it wrong and sometimes, you support the wrong person,” he stated.

By supporting Gruenberg, Deaton believes that Warren once again prioritized her political goal over acting honorably and morally by safeguarding these workers.

In addition, rather than owning up to her error and calling Gruenberg’s registration, she is aiding him. As a result, Deaton highlights the Senator’s action as another instance of her selective outrage and hypocrisy.

French regulators are sending a strong message to the cryptocurrency industry: play by our rules, or get out. The latest target? Bybit, a major crypto exchange, which has been blocked by the French Financial Market Authority (AMF) for operating without proper authorization.

This move follows a similar warning against Bitget last November, highlighting the AMF’s commitment to reining in the unregulated crypto market in France.

DASP Registration: The Gatekeeper To French Crypto

The key to operating legally in France’s crypto market lies in obtaining a Digital Asset Service Provider (DASP) registration. This acts as a regulatory gateway, ensuring exchanges meet specific criteria to protect consumers and maintain financial order.

The AMF requires DASP registration to ensure exchanges meet specific criteria. These criteria help protect consumers and maintain financial order.

Protecting Investors In A Volatile Market

The AMF’s focus on investor protection is particularly noteworthy. The cryptocurrency market, with its inherent volatility and susceptibility to scams, can be a treacherous landscape for newcomers. DASP registration acts as a shield, ensuring exchanges have safeguards in place to protect retail investors from reckless practices.

Not Just Bybit: A Trend Of Regulatory Scrutiny

France’s regulatory crackdown isn’t stopping with Bybit. Recall the past investigations into Binance, a heavyweight in the crypto exchange game. Even after Binance secured a license, the whole episode highlights a key point: the AMF isn’t afraid to go after the big players to enforce compliance.

This trend of regulatory scrutiny is likely to continue. As the global crypto market matures, governments worldwide are grappling with how to balance innovation with consumer protection and financial stability. France’s firm stance serves as an example for other nations seeking to establish a secure and well-regulated crypto ecosystem.

The Road Ahead For Bybit: Compliance Or Exclusion

The message from French regulators is clear: unregistered crypto exchanges are not welcome. The Bybit ban serves as a stark warning to other platforms operating outside the DASP framework.

For compliant exchanges, however, France presents a potentially lucrative market. Binance’s successful license acquisition demonstrates the possibility of navigating the regulatory landscape. The key takeaway? Compliance is no longer optional; it’s the price of admission to France’s crypto party.

Is This A Positive Development For The Crypto Industry?

While some may view the AMF’s actions as stifling innovation, others see it as a necessary step towards legitimacy. Increased regulation can foster trust and attract institutional investors who have so far remained wary of the crypto market’s Wild West reputation.

Ultimately, France’s regulatory push could pave the way for a more mature and sustainable crypto ecosystem, not just within its borders, but potentially on a global scale.

Featured image from Protos, chart from TradingView

In another remarkable day for cryptocurrency investments, US-based spot Bitcoin Exchange Traded Funds (ETFs) witnessed a substantial influx of capital, totaling $257.3 million on Thursday. This significant inflow marks the third consecutive day of large-scale investments into these funds, signaling a robust and returning interest among institutional and retail investors alike in Bitcoin.

The Grayscale Bitcoin Trust (GBTC) reported a positive inflow of $4.6 million, continuing its upward trend for the second day. BlackRock, a major player in the investment arena, also saw a noteworthy resurgence in inflows, capturing $93.7 million after a stagnant three days. This development indicates a renewed confidence in Bitcoin from a variety of investor bases.

Other ETF providers also saw impressive inflows: Fidelity reported $67.1 million, Bitwise took in $1.4 million, ARK Invest added $62 million, Invesco received $6.2 million, Franklin saw $3.8 million and Valkyrie gained $18.5 million.

This sustained inflow trend across multiple providers underlines a collective bullish sentiment in the market. Renowned crypto analyst WhalePanda (@WhalePanda) highlighted the significance of these movements.

“Yesterday’s ETF flows by FarsideUK was entirely positive again for $257.3 million. […]. After the price going back to $66.500 on Wednesday, we had some consolidation and it’s now [above $66,000]. No other major news was announced, the fact that the price didn’t move with these inflows tells me that there is another party unloading in this range.”

Good morning,

Yesterday’s ETF flows by @FarsideUK was entirely positive again for $257.3 million.

Blackrock finally had inflows again for $93.7 million. Fidelity did $67.1 million and Ark $62 million.

Even $GBTC was positive for $4.6 million.

After the price going back to… pic.twitter.com/qpJFCAoenS

— WhalePanda (@WhalePanda) May 17, 2024

Old Bitcoin ETF Debate Reignites

Amidst the inflow of excitement, a seasoned debate concerning the transparency and potential for market manipulation within the Bitcoin ETF ecosystem resurfaced yesterday. Tyler Durden, a pseudonymous crypto commentator, expressed concerns about the off-chain recording of Bitcoin transactions by large institutions like BlackRock.

“Blackrock can take as much Bitcoin as they want from Coinbase and the transaction is recorded off chain. I’d like to see all of the ETF’s wallets. […] This means they can borrow Bitcoin from Coinbase to short and are not required to show any proof they hold 1:1. There’s also a 2-30 day settlement. All settlements are done in cash. The writings on the wall, unless someone can find the ETFs wallets on-chain.”

Responding to these concerns, Dave Weisberger, chairman of CoinRoutes, defended the practices imposed by regulatory guidelines: “OF COURSE they had to do it that way because of the ‘cash creation/redemption’ the SEC forced. The Authorized Participants can’t ‘touch’ spot Bitcoin so MUST engage in off-chain transactions. As I said repeatedly, ‘in kind’ would have been more efficient & transparent, but this fear mongering is nonsense.”

Weisberger emphasized that the ETFs are required by their charter to hold full backing in spot Bitcoin for all settled shares, ensuring adherence to regulatory standards.

Moreover, James Seyffart, a Bloomberg ETF expert, also weighed in, supporting Weisberger’s perspective and hinting at the ongoing learning curve in the ETF industry regarding cryptocurrency transactions. “The gang learns about cash creation,” Seyffart said, “What a throwback to early December 2023. I pretty much agree with Dave here.”

At press time, BTC traded at $66,109.

In a potentially game-changing moment for the crypto sector, the US Senate has passed H.J. Res 109, a bill seeking to overturn the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) No. 121 om Thursday, May 16. The bill was passed with substantial bipartisan support, receiving a 60-38 vote in the Senate and earlier approval from the House.

SAB 121, implemented in 2022, mandated digital asset custodians to list digital assets as liabilities on their balance sheets, a requirement widely criticized within the crypto community. Critics argue that this regulation unfairly treats customer-owned digital assets as the custodian’s liabilities, thereby necessitating equivalent cash reserves to offset these “liabilities.”

Why Yesterday’s Vote Is A Game-Changer For Crypto

Avichal Garg, Co-Founder and General Partner at Electric Capital, expressed the industry’s frustration, stating, “If a bank custodies $1b of Bitcoin for customers, they have to hold $1b in cash to offset this ‘liability’ on their balance sheet. The assets are not the company’s. They are the customers’.” Garg also suggested that SAB 121 was designed to keep banks out of the crypto markets, which he sees as detrimental to consumer protection.

The Senate’s decision represents a critical juncture not only for crypto regulation but also for political alignments concerning financial technology. Notably, the vote saw 21 Democrats break ranks from their usual stance under the influence of Senator Elizabeth Warren, who has been a stringent advocate for strict financial and tech regulations. This shift suggests a significant political realignment, potentially indicative of a broader centrist move in the Democratic Party concerning market regulations.

Senate Majority Leader Chuck Schumer’s vote in favor of repealing SAB 121 carries considerable weight, signaling strong Congressional support for the cryptocurrency sector against the backdrop of President Biden’s veto threat.

Matt Hougan, Chief Investment Officer at Bitwise, described the moment as transformative for the industry: “This is a game-changing moment for crypto. It’s one of the catalysts that will propel crypto to new all-time highs as the market digests the sea change that’s occurred here.”

Further highlighting the political drama, Perianne Boring, Founder and CEO of The Chamber of Digital Commerce, pointed out the potential influence of Senator Schumer in swaying the President’s decision: “If anyone can convince POTUS to sign, it’s Schumer. We have a very real chance of getting this across the finish line.”

Jake Chervinsky, Chief Legal Officer at Variant Fund, also commented on the implications of the vote, stating, “The Senate just delivered a deafening bipartisan message in favor of common sense and against SEC overreach. It’s impossible to overstate the importance of Majority Leader Schumer voting to repeal SAB 121 over President Biden’s threatened veto.”

What Will President Biden Do?

The resolution now sits on President Biden’s desk, with the President having expressed intentions to veto it, aligning with Senator Warren and SEC Chair Gary Gensler’s views that the SEC’s guidelines are crucial for protecting investors in the volatile crypto markets. Eleanor Terrett of FOX Business highlighted the President’s dilemma, noting, “Biden now has 10 days to either veto, sign or do nothing. Doing nothing would mean it goes into law just without the signature.”

The crypto industry remains on edge as it awaits the President’s decision. A veto would maintain the status quo, potentially stifling further institutional participation in the crypto market due to perceived regulatory risks. Conversely, a decision to sign or allow the bill to pass without a signature could significantly liberalize the regulatory environment, encouraging more substantial institutional engagement and possibly catalyzing a new phase of market growth and innovation.

As the deadline approaches, the decision will not only determine the regulatory framework for digital asset custody but also signal the administration’s broader stance towards innovation and regulation in the fintech sector.

At press time, Bitcoin traded at $65,565.

In a recent development, Sam Trabucco, a key figure in Sam Bankman-Fried’s inner circle, has resurfaced after his absence from the public eye following the collapse of crypto exchange FTX in late 2022. 

According to Bloomberg, Trabucco has come forward to support Ryan Salame, another former FTX executive who awaits sentencing for his involvement in the platform’s downfall.

Sam Trabucco’s First Communication Since FTX Bankruptcy

Trabucco’s endorsement of Salame was expressed in a letter describing Salame as the “funniest, most passionate, most supportive friend” he has ever had. The letter, made public as part of court filings on Wednesday, marks Trabucco’s first communication since the days leading up to FTX’s bankruptcy in November 2022.

Formerly serving as the co-chief executive of Alameda Research, a crypto fund established by Bankman-Fried, Trabucco played a crucial role in venture capital and market-making. However, in August 2022, three months before FTX’s failure, he abruptly stepped away from Alameda and retreated from public life.

Unlike other close associates of Bankman-Fried, such as Caroline Ellison, the other co-chief executive of Alameda, and FTX executives Gary Wang and Nishad Singh, Trabucco did not participate in Bankman-Fried’s trial or contribute publicly available evidence. 

As Bitcoinist reported, Bankman-Fried received a 25-year prison sentence in March, while his former colleagues await their verdicts in the following months. Notably, Trabucco has not faced any public accusations of wrongdoing.

Diverse Group Rallies Behind Former FTX Executive

Trabucco has a long association with Bankman-Fried, having known each other since their early days at the Massachusetts Institute of Technology (MIT) math camp. According to Bloomberg, he often shared how his poker strategy influenced Alameda’s trading decisions.

Prior to Alameda’s collapse, Trabucco allegedly received approximately $25 million in transfers from the firm. Moreover, Alameda spent $2.5 million to purchase a 52-foot yacht for Trabucco, which he affectionately named “Soak My Deck.” 

Ryan Salame, who formerly oversaw FTX’s digital assets unit in the Bahamas, has pleaded guilty to conspiracy charges related to operating an unlicensed money-transmitting business and engaging in campaign finance fraud. 

Several individuals, including a Georgetown finance professor, a martial arts grandmaster, family members, neighbors, former FTX employees, and Bahamian residents, have submitted letters in support of Salame.

As the legal proceedings progress, the emergence of Sam Trabucco and his endorsement of Ryan Salame sheds new light on the ongoing fallout from FTX’s collapse. 

The exchange’s native token, FTT, trades at $1.65, down over 3% in the past 24 hours.

Featured image from Bitcoinist, chart from TradingView.com