Caroline Ellison Discusses FTX-Binance Conflict and SEC Ruling: Hodler’s Digest, Oct.

Top Stories This Week

Caroline Ellison’s Concerns About FTX Bank Run

Caroline Ellison, former CEO of Alameda Research, provided detailed testimony during Sam Bankman-Fried’s trial, shedding light on the events leading up to the FTX crisis in November 2022. Ellison revealed that she intended to leave Alameda months prior to the collapse, but was worried about a potential bank run on FTX due to the downturn in the crypto market. The trial also featured a recording of Ellison informing employees about Alameda’s use of FTX customer deposits. Other highlights from the trial included revelations of fabricated balance sheets and testimonies from industry leaders.

In the midst of the collapse of FTX, Sam Bankman-Fried, the former CEO, expressed concerns about buying shares in Snapchat, raising funds from Saudi royalty, and urging regulators to take action against rival exchange Binance. According to a document from November 6, 2022, Bankman-Fried alleged that Binance was engaged in a PR campaign against FTX, leaking a balance sheet and publicly announcing the sale of $500 million in FTT tokens in response.

SEC Decides Not to Appeal Grayscale Bitcoin ETF Decision

The United States Securities and Exchange Commission (SEC) has reportedly chosen not to appeal a recent court ruling favoring Grayscale Investments. The ruling requires the SEC to review Grayscale’s application for a spot Bitcoin exchange-traded fund (ETF). While this decision does not guarantee approval for Grayscale’s application, it does mandate the SEC to review the company’s request to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF.

Terraform Labs Accuses Citadel Securities of Stablecoin Collapse

Terraform Labs has filed a motion in the United States, seeking to compel Citadel Securities to produce documents related to its trading activity during the alleged intentional depegging of TerraUSD in 2022. Terraform argues that these documents are crucial for its defense against the U.S. Securities and Exchange Commission’s lawsuit, which accuses the company and its founder, Do Kwon, of orchestrating a multi-billion dollar crypto asset securities fraud. Citadel Securities has denied trading the TerraUSD stablecoin in May 2022.

Mastercard Completes Successful Wrapped CBDC Trial

Mastercard recently conducted a trial involving the wrapping of central bank digital currencies (CBDCs) on different blockchains, similar to wrapped Bitcoin and wrapped Ether. This trial, conducted in collaboration with the Reserve Bank of Australia and the country’s Digital Finance Cooperative Research Centre CBDC, demonstrated the ability to purchase nonfungible tokens (NFTs) listed on Ethereum using a CBDC. The CBDC was locked on the central bank’s platform and an equivalent amount of wrapped CBDC tokens were minted on Ethereum. Mastercard sees this as a step towards greater adoption and integration of CBDCs in the future.

Winners and Losers

As of the end of the week, Bitcoin (BTC) is valued at $26,892, Ether (ETH) at $1,551, and XRP at $0.48. The total market cap stands at $1.05 trillion, according to CoinMarketCap.

Among the top 100 cryptocurrencies, the biggest gainers of the week include Loom Network (LOOM) with an 86.71% increase, Trust Wallet Token (TWT) with a 16.72% increase, and Tether Gold (XAUt) with a 5.16% increase.

On the other hand, the top three altcoin losers of the week are Mantle (MNT) with a -17.27% decrease, Rocket Pool (RPL) with a -14.39% decrease, and Avalanche (AVAX) with a -13.39% decrease.

For more information on cryptocurrency prices, you can refer to Cointelegraph’s market analysis.

Most Memorable Quotations

“That’s our homework, actually. To really educate people about the benefit of using blockchain.”

– Grace Sabandar, co-founder of the Indonesia Blockchain and Metaverse Center

“Crypto-assets markets, including DeFi, do not represent meaningful risks to financial stability at this point.”

– European Securities and Markets Authority

“I was worrying about customer withdrawals from FTX, this getting out, people to be hurt. […] I didn’t feel good. If people found out [about Alameda using FTX funds], they would all try to withdraw from FTX.”

– Caroline Ellison, former CEO of Alameda Research

“It’s alarming and should be a wakeup call for lawmakers and regulators that digital wallets connected to Hamas received millions of dollars in cryptocurrencies.”

– Elizabeth Warren, U.S. senator

“Bitcoin and Ethereum may seem like opposites, but they can co-exist and complement each other.”

– Willem Schroé, CEO of Botanix Labs

“People who believe SBFraud is a ‘good guy’ who made ‘mistakes’, and FTX grew too fast and it all got away from him, should NEVER be in charge of other people’s money.”

– John Deaton, attorney and crypto advocate

Prediction of the Week

Ethereum’s Losing Streak versus Bitcoin

The price of Ethereum’s native token, Ether, reached a 15-month low against Bitcoin, the lowest since Ethereum switched to proof-of-stake. The ETH/BTC pair dropped to 0.056 BTC, breaking below its 200-week exponential moving average (EMA). Historically, the 200-week EMA has served as a reliable support level for ETH/BTC bulls. If ETH/BTC fails to reclaim the 200-week EMA as support, the next downside target may be around the 0.5 Fibonacci line at 0.051 BTC. On the other hand, if ETH regains the 200-week EMA as support, it may rebound towards its 50-week EMA at 0.065 BTC.

Fear, Uncertainty, and Doubt (FUD) of the Week

High Price Paid for CrypToadz NFT Raises Questions

An anonymous user recently purchased one of the CrypToadz NFTs for 1,055 wrapped Ether (equivalent to $1.6 million), despite their average price not exceeding $1,000. CrypToadz gained significant popularity during the NFT boom in 2021, with a trading volume of over $38 million worth of Ether in the first 10 days. The exorbitant price paid for the NFT has raised suspicions within the community, as the same item was acquired just two weeks prior for 0.95 ETH (around $1,600).

USDR Stablecoin Loses Peg, Team Seeks Solutions

The real estate-backed stablecoin USDR experienced a significant depegging from the U.S. dollar after a surge in redemptions drained its liquid assets. Tangible, the decentralized finance project behind USDR, claims that a trader exchanged 131,350 USDR for 0 USD Coin, resulting in a complete loss on investment. To address this issue, the Tangible protocol team is working on implementing measures to ensure the stablecoin’s value stability and integrity in the future.

HTX Recover Stolen Funds, Issues Bounty to Hacker

Huobi Global’s exchange platform HTX successfully retrieved the funds stolen by a hacker in late September. HTX has also issued a bounty of 250 Ether to the hacker for returning the funds. Following the theft of 5,000 ETH, which was valued at approximately $8 million at the time, HTX contacted the hacker and identified their identity. As part of a settlement, HTX offered a 5% bounty worth around $400,000 and pledged not to pursue legal action if 95% of the stolen funds were returned before the deadline.

Potential Applications of Zero-Knowledge Proofs

Zero-knowledge proofs, a cryptographic technology, have the potential to address the modern needs for privacy and truth. This emerging technology can be applied in various sectors beyond crypto, including voting systems and finance, where verifying data without disclosing confidential information is essential.

Eleanor Terrett on Impersonators and the Crypto Industry

Eleanor Terrett, a Fox Business producer, gained a following after providing commentary on the SEC v. Ripple lawsuit. She discusses the growing issue of impersonators within the crypto industry and advocates for a more robust and secure environment for investors.

SBF’s Alleged Chinese Bribe and Binance’s Account Freeze Clarification

Recent news includes allegations that SBF allegedly bribed Chinese officials with $150 million to unfreeze accounts. In a separate incident, Binance clarified its decision to block digital wallets connected to Hamas, emphasizing its commitment to complying with regulatory requirements. Additionally, Huobi Global announced the return of stolen assets by a hacker.

Editor Notes

It is crucial for news outlets to provide accurate and up-to-date information on events occurring within the cryptocurrency industry. The FTX-Binance conflict and the SEC ruling regarding Grayscale Bitcoin ETF are significant developments that warrant attention and discussion. By following platforms like Uber Crypto News, readers can stay informed about the latest trends and news in the crypto space. Uber Crypto News is a reliable source of information for crypto enthusiasts and investors.