Top 5 Events That Shook the Crypto Industry in 2023
In 2023, the crypto industry experienced a series of events that had a significant impact on the landscape. These events affected both crypto enthusiasts and institutional investors alike. Here are the top 5 events that shook the crypto industry to its core in 2023.
BlackRock Spot Bitcoin ETF Rocks Crypto
The world’s largest asset management company, BlackRock, made headlines by being the first major traditional investment firm to apply for a Spot Bitcoin Exchange Traded Fund (ETF). The company submitted its application to the United States Securities and Exchange Commission (SEC) in June 2023. This move inspired other companies like Grayscale, Ark Invest, WisdomTree, VanEck, and more to follow suit. Despite delays in approval by the SEC, BlackRock utilized this time to improve its filing and increase the chances of approval.
Sam Bankman-Fried Fraud Conviction
Sam Bankman-Fried, the founder and former CEO of FTX, faced a major setback when he was found guilty of fraud, conspiracy, and money laundering charges in November 2023. The jury unanimously convicted him for misappropriating billions of dollars of customer funds and defrauding lenders. Bankman-Fried could potentially face up to 115 years in prison.
CZ Resignation From Binance Causes A Stir In Crypto Community
The founder of Binance, Changpeng Zhao (CZ), shocked the crypto community by stepping down as CEO on November 21, 2023. This decision came after CZ pleaded guilty to breaking US anti-money laundering laws as part of a $4.3 billion settlement with the United States Department of Justice (DOJ). CZ is currently restricted from leaving the US due to concerns about his potential as a flight risk.
XRP Ruling In SEC Case
In a significant victory for Ripple, US District Judge Analisa Torres ruled in favor of the company on July 13, 2023. The ruling stated that programmatic sales of XRP did not qualify as a security. This decision provided much-needed regulatory clarity for XRP and allowed the cryptocurrency to resume trading on major exchanges that had previously delisted it due to the SEC’s lawsuit in 2020.
Grayscale And Coinbase Rage Against The SEC
Grayscale, a leading crypto asset management company, achieved a victory against the SEC on August 29, 2023. The D.C. Circuit Court of Appeals ruled in favor of Grayscale, ordering the regulatory agency to terminate its rejection of the company’s Spot Bitcoin ETF application. Similarly, Coinbase filed a lawsuit against the SEC in April 2023, seeking regulatory clarity for the crypto industry. However, the SEC retaliated by suing Coinbase on June 6, 2023, accusing the exchange of violating securities laws. The case between Coinbase and the SEC is still ongoing.
Hot Take: A Year of Turmoil and Transformation
The year 2023 was filled with ups and downs for the crypto industry. From major investment firms entering the market with Bitcoin ETF applications to high-profile fraud convictions and legal battles against regulators, it was a year of turmoil and transformation. These events highlighted both the potential and challenges of cryptocurrencies and blockchain technology. As we move forward, it is crucial for investors and enthusiasts to stay informed and adapt to the changing landscape to navigate this dynamic industry successfully.
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