Former FTX CEO Found Guilty on All Charges
The former CEO of FTX, Sam “SBF” Bankman-Fried, has been found guilty on all seven charges in a New York court. The charges include wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy, and money laundering conspiracy. Bankman-Fried will be sentenced by Judge Lewis Kaplan on March 28, 2024, with the final decision resting with the judge. Each of his crimes carries a maximum sentence of five to 20 years in prison.
Government prosecutors described Bankman-Fried’s crimes as a “multibillion-dollar scheme” aimed at making him the king of crypto. This case is considered one of the largest financial frauds in American history.
FTX Claims Pricing Reaches New High
The claims pricing of FTX has reached its peak at 57%. This increase is partly due to the valuation of artificial intelligence (AI) companies that FTX had previously invested in. Compared to other bankrupt crypto firms like Celsius, Genesis, Alameda Research, and Three Arrows Capital, FTX claims value is significantly higher.
FTX has also requested permission from the bankruptcy court in Delaware to sell key trust fund assets worth around $744 million. This request follows the court’s approval for the liquidation of nearly $3.4 billion in crypto assets.
New AI Safety Standards Established in the US
US President Joe Biden has issued an executive order establishing new standards for AI safety and security. The order builds upon previous actions and includes commitments from leading companies in the industry. The standards focus on six key points, including sharing safety test results with the government and developing standardized tools for ensuring AI’s safety and trustworthiness.
The order also addresses the protection against AI usage for engineering dangerous biological materials through new screening standards.
FCA Provides Guidance on Crypto Promotion Rules
In response to low compliance with the new crypto asset promotion rules in the UK, the Financial Conduct Authority (FCA) has issued additional guidance. The 32-page document clarifies expectations for crypto firms and provides answers to questions submitted during the consultation phase. The guidance aims to help firms comply with the rules and fulfill their obligations.
Switzerland Initiates Wholesale CBDC Pilot
The Swiss National Bank (SNB), six commercial banks, and the SIX Swiss Exchange are collaborating on a pilot project for wholesale central bank digital currencies (CBDCs). The project, known as Helvetia Phase III, will test the effectiveness of a Swiss franc wCBDC in settling digital securities transactions. The pilot builds upon previous phases conducted by the BIS Innovation Hub, SNB, and SIX. It will run from December 2023 to June 2024.
Hot Take: Former FTX CEO Found Guilty in Landmark Crypto Fraud Case
The verdict in the trial of former FTX CEO Sam “SBF” Bankman-Fried marks a significant moment in the cryptocurrency industry. With guilty convictions on all charges, including wire fraud and money laundering conspiracy, Bankman-Fried’s crimes have been deemed one of the largest financial frauds in American history. This case highlights the importance of accountability and regulation within the crypto space.
Furthermore, FTX’s claims pricing reaching a new high demonstrates the impact of AI company valuations on bankrupt crypto firms. The request to sell trust assets worth millions of dollars adds another layer to FTX’s bankruptcy proceedings.
As the industry continues to evolve, it is crucial for companies and individuals alike to adhere to ethical standards, comply with regulations, and prioritize the safety and security of investors.
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