**How SBF Allegedly Cooked Alameda’s Books**
The ongoing criminal trial of Sam Bankman-Fried, the disgraced founder of FTX, has been the biggest attention-grabber in the crypto space this week. Testimonies from star witnesses have shed light on FTX’s business practices, potentially damaging Bankman-Fried’s hopes of absolution. Former CEO of Alameda Research, Caroline Ellison, testified that Bankman-Fried asked her to prepare fraudulent balance sheets for creditors to deceive them about Alameda’s financial condition. She also revealed that Bankman-Fried hoped to increase FTX’s market share by inciting investigations into Binance. Bankman-Fried’s defense argues that he acted within FTX’s terms and conditions and did not break any laws.
**Random FTX Insurance Numbers**
Another revelation from the trial came from FTX’s former Chief Technology Officer, Gary Wang, who testified that the published size of FTX’s insurance fund was inaccurate. He claimed that the figure was derived from a random number generator, suggesting that it was fabricated. Wang also stated that Bankman-Fried had asked him to change FTX’s code to allow Alameda to have a negative balance. The trial is expected to continue until mid-November.
**Bitcoin Halving Doubles Miner Headaches**
Many commentators expressed anger at FTX for allegedly causing Bitcoin’s price to tumble last year. The collapse of the TerraUSD ecosystem, in which Alameda Research had invested significantly, had a ripple effect on markets and affected confidence in Bitcoin and Ether. However, there is hope for the crypto market with the upcoming Bitcoin halving, which will reduce mining rewards and historically has resulted in bullish price action. JPMorgan predicts that less efficient miners may drop off after the halving, making it easier for remaining miners to earn rewards.
**Less Student Debt Could Boost Crypto**
President Joe Biden’s promise to cancel $127 billion in student debt could free up disposable income for investments in crypto. During the pandemic, stimulus checks led to increased investments in crypto and stocks. Additionally, there is growing institutional interest in Bitcoin, with investment managers applying to launch a Bitcoin spot ETF, which could drive up demand and price.
**Binance Helps Police Seize Hamas Crypto Accounts**
Israeli police, with assistance from Binance, seized crypto and fiat accounts belonging to the Hamas militant group. This move disrupted the group’s financing following its attack on Israel. The seizure reignited the debate on Bitcoin’s potential use in terrorist financing and raised concerns about Binance’s lax approach to crime on its platform. Binance has faced previous allegations of assisting Iran in bypassing sanctions. Despite regulatory scrutiny, Binance remains the world’s largest cryptocurrency exchange by trading volume.
**Hot Take: What to Make of This Week’s Crypto News**
This week’s crypto news has been dominated by the ongoing trial of Sam Bankman-Fried and revelations about FTX’s business practices. The testimony from witnesses has cast doubt on Bankman-Fried’s defense and raised questions about the integrity of FTX’s balance sheets and insurance fund. Meanwhile, economists predict that Bitcoin may become more lucrative for investors and miners due to factors such as interest rate hikes, the cancellation of student debt, and the upcoming halving. However, concerns about terrorist financing using cryptocurrencies resurfaced with the seizure of Hamas’ crypto accounts. Overall, these events highlight both the potential and challenges facing the crypto industry as it continues to evolve.
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