Cryptocurrency/Bitcoin

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Former FTX CEO Sam Bankman-Fried arrested in the Bahamas

NEW YORK (AP) — The former CEO of failed cryptocurrency firm FTX, Sam Bankman-Fried, has been arrested in the Bahamas at the request of the U.S. government, U.S. and Bahamian authorities said Monday.

https://apnews.com/article/technology-business-bahamas-united-states-government-1de16cdf7e6956b401e998c34ad1fd11?

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FTX’s Bankman-Fried charged by US for ‘scheme’ to defraud

NEW YORK (AP) — The U.S. government charged Samuel Bankman-Fried, the founder and former CEO of cryptocurrency exchange FTX, with a host of financial crimes on Tuesday, alleging he intentionally deceived customers and investors to enrich himself and others, while playing a central role in the company’s multibillion-dollar collapse.

https://apnews.com/article/cryptocurrency-technology-business-united-states-government-us-securities-and-exchange-commission-32d27016350e3e175c500eeefaf2aa4d

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Ex-FTX CEO says he didn’t ‘knowingly’ misuse clients’ funds

NEW YORK (AP) — The former CEO of the failed cryptocurrency exchange FTX said Wednesday that he did not “knowingly” misuse customers’ funds, and said he believes his millions of angry customers will eventually be made whole.

https://apnews.com/article/business-andrew-ross-sorkin-72f8b8934e022a9c539c437f8d1938ef

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New FTX CEO says lax oversight, bad decisions caused failure

WASHINGTON (AP) — The new CEO of the failed cryptocurrency exchange FTX is appearing before a House committee Tuesday, detailing for lawmakers the lack of oversight and financial controls that he discovered since taking over the company a month ago.

https://apnews.com/article/cryptocurrency-business-bahamas-government-and-politics-fraud-2aeab1ec12baec40ccf873780dd9859a

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Ex-FTX CEO Bankman-Fried says he will testify to Congress

The former CEO of the failed cryptocurrency exchange FTX said in a tweet Friday that he is willing to testify to Congress next week, but that he will be limited in what he can say and that he “won’t be as helpful” as he’d like to be.

https://apnews.com/article/cryptocurrency-business-maxine-waters-801b709670d357ea60785cb505fa9300

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Lawmakers quick to unload FTX founder’s contributions

WASHINGTON (AP) — A writer’s workshop in Alaska. Food banks in California. A charity that fights diabetes.

https://apnews.com/article/ftx-campaign-contributions-offloaded-a6dcd8bc5dd430e0a816c676acf2b207

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Individual creditor names remain secret in FTX bankruptcy

DOVER, Del. (AP) — The judge presiding over the bankruptcy of cryptocurrency exchange FTX Trading is allowing the company to maintain a veil of secrecy over the names of its customers and creditors.

https://apnews.com/article/new-england-patriots-business-fraud-recessions-and-depressions-bankruptcy-93cc19a4cd06e97a697bf86b010c94dc?

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FTX founder Bankman-Fried charged with paying $40M bribe

NEW YORK (AP) — FTX founder Sam Bankman-Fried was charged with directing $40 million in bribes to one or more Chinese officials to unfreeze assets relating to his cryptocurrency business in a newly rewritten indictment unsealed Tuesday.

https://apnews.com/article/bankmanfried-cryptocurrency-indictment-0f9ed9ae6353c802416a98eb2ff94218?

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FTX’s Bankman-Fried faces new charges in updated indictment

NEW YORK (AP) — FTX founder Sam Bankman-Fried faced new fraud charges Thursday, as prosecutors accused him of cheating thousands of investors out of billions of dollars while casting himself as a trustworthy ”savior of the cryptocurrency industry” — an image boosted by celebrity-studded Super Bowl advertising and big donations to political figures.

https://apnews.com/article/technology-new-york-city-fraud-indictments-business-ceb821b5cd36052bf146c2119ca7f1dd?

Minority investors struggle with faith in crypto

https://apnews.com/video/cryptocurrency-business-fraud-colombia-ethiopia-19a2257ea4984224b2c931d3dbf13c70

South Dakota gov’s veto of cryptocurrency regulations upheld

South Dakota’s House failed Monday to override Gov. Kristi Noem’s recent veto of a bill that would have created government regulations for the use of cryptocurrency in the state.

https://apnews.com/article/noem-veto-upheld-south-dakota-cryptocurrency-f6ee87ee2a68cd6460694504c87ec98c

FTX founder’s bail signatories include 2 family friends

NEW YORK (AP) — Two Stanford University academics signed on to FTX founder Sam Bankman-Fried’s $250 million bail package, enabling him to live with his parents while awaiting trial on fraud charges, court papers revealed Wednesday.

https://apnews.com/article/cryptocurrency-technology-lewis-a-kaplan-sam-bankman-fried-manhattan-6afa4e34290577e068f1905f14b87985

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FTX founder Sam Bankman-Fried jailed

Sam Bankman-Fried, founder and former CEO of bankrupt crypto exchange FTX, is headed to jail after his bail was revoked.

https://www.axios.com/2023/08/11/sam-bankman-fried-news-ftx?

Judge sends FTX founder Sam Bankman-Fried to jail, says crypto mogul tampered with witnesses

NEW YORK (AP) — FTX founder Sam Bankman-Fried left a federal courtroom in handcuffs Friday when a judge revoked his bail after concluding that the fallen cryptocurrency wiz had repeatedly tried to influence witnesses against him.

https://apnews.com/article/sam-bankman-fried-court-hearing-5d85e43225c4da2b1abdf65b153bb760?

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Jury selection begins in trial of fallen cryptocurrency mogul Sam Bankman-Fried

NEW YORK (AP) — Jury selection began Tuesday in the fraud trial of FTX founder Sam Bankman-Fried after a prosecutor revealed that no discussions about a potential plea agreement took place in the nearly 10 months since the cryptocurrency executive was arrested and brought to the United States.

https://apnews.com/article/bankman-fried-cryptocurrency-trial-e1a6ca570bc401937a04bd15a404f8bd?

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Sam Bankman-Fried plans to testify at his New York fraud trial, his lawyer says

NEW YORK (AP) — FTX founder Sam Bankman-Fried plans to testify at his fraud trial, his lawyer told a federal judge Wednesday, ending speculation over whether a man who embraced the spotlight during his years atop the cryptocurrency world could remain silent after prosecutors portrayed him as a greedy entrepreneur who stole billions of dollars from customers.

https://apnews.com/article/sam-bankmanfried-ftx-crypto-bitcoin-d69c963b24db9f265440d8fa9e768490?

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⚖️ SBF takes the stand

Sam Bankman-Fried is questioned by his attorney Mark Cohen today. Sketch: Elizabeth Williams via AP FTX founder Sam Bankman-Fried officially started testifying today after suffering a major setback at his New York trial, Axios Crypto co-author Brady Dale writes. Why it matters: Judge Lewis Kaplan almost entirely banned SBF from saying he had relied on lawyers to make decisions at FTX in front of the jury. Yesterday's hearing — which featured SBF on the stand with no jury present — gave the judge a chance to hear the defendant's testimony and decide how much was admissible. Keep reading.

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FTX founder Sam Bankman-Fried convicted of defrauding cryptocurrency customers Bankman-Fried’s spectacular rise and fall in the cryptocurrency industry — a journey that included testimony before Congress, a Super Bowl advertisement and dreams of a future presidential bid — hit rock bottom when a New York jury convicted him of fraud for stealing at least $10 billion from customers and investors. Read more.

Why this matters: The prosecution of Bankman-Fried put a spotlight on the emerging industry of cryptocurrency and a group of young executives in their 20s who dreamed of becoming the most powerful players in a new financial field. With the siphoned money, prosecutors said, Bankman-Fried gained influence and power through investments, tens of millions of dollars in political contributions, and a publicity campaign that enlisted celebrities like comedian Larry David and football quarterback Tom Brady.   U.S. Attorney Damian Williams said Bankman-Fried perpetrated one of the biggest financial frauds in American history, a multibillion-dollar scheme designed to make him the king of crypto. FTX collapsed into bankruptcy a year ago and the trial attracted intense interest with its focus on a fraud on a scale not seen since the 2009 prosecution of Bernard Madoff, whose Ponzi scheme over decades cheated thousands of investors out of nearly $20 billion.

Related coverage ➤  Bitcoin prices have doubled this year and potentially new ways to invest may drive prices higher EXPLAINER: How cryptocurrencies work (and how they don’t)

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⚖️ SBF swiftly convicted

This sketch by Axios' Brady Dale shows Sam Bankman-Fried on the stand in Manhattan on Tuesday, as Judge Lewis Kaplan listens. Sam Bankman-Fried was found guilty last night of all seven charges against him — including fraud on FTX customers and investors, fraud on Alameda's lenders and conspiracy to commit money laundering. Jurors took less than five hours to reach the verdict, Axios Crypto authors Crystal Kim and Brady Dale report from federal court in Manhattan. Why it matters: SBF has been convicted in one of the "biggest financial frauds in American history," where $8 billion in customer deposits went missing from what was then the world's third-largest crypto exchange. The blow-up of FTX and its sister hedge fund Alameda Research — both now in bankruptcy — was so messy, it's been compared to Enron. SBF's parents, Barbara Fried and Joseph Bankman, react to the verdict. Sketch: Elizabeth Williams via AP ? Reality check: The defense likely suffered from SBF's own testimony. Between evasive responses and a condescending tone during cross-examination, there was little to like about the founder and former CEO. Claims that he acted in good faith, wasn't aware of billions in missing customer money, or that he thought he was on the right side of the law due to the presence of his lawyers, failed to sway jurors. What's next: Judge Lewis Kaplan set SBF's sentencing for March 28. A second trial on four additional charges is slated for earlier that month. SBF can appeal, but not until sentencing. Go deeper: Trial's key moments ...

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What The Sam Bankman-Fried Verdict Means For Crypto

The Lever speaks with cryptocurrency critic Molly White about the criminal trial of former cryptocurrency titan Sam Bankman-Fried.

https://www.levernews.com/lever-time-what-the-sam-bankman-fried-verdict-means-for-crypto/

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⚠️ For investors, SBF is the biggest loser

Photo illustration: Aïda Amer/Axios. Photo: Frazer Harrison and Lam Yik/Bloomberg via Getty Images

No single founder stacked up more losses for venture investors than Sam Bankman-Fried, according to PitchBook. Why it matters: SBF was the worst thing to ever happen to the digital asset industry. And he's maybe the worst thing to happen to investors, Axios Crypto co-authors Brady Dale and Crystal Kim write. Flashback: History is littered with big losses for VCs. But PitchBook tells Axios that of those where a founder was still there for the fall, only Elizabeth Holmes of Theranos comes close to SBF's dead weight on portfolios. She wiped out $1.1 billion from her backers. SBF more than doubled that. The twist: SBF's investment in AI startup Anthropic could ultimately be valuable enough to see FTX customers — out billions — made whole.

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⚖️ Another crypto titan falls

Changpeng "CZ" Zhao — the founder and CEO of crypto exchange Binance — stepped down and pleaded guilty to money laundering violations, Axios' Crystal Kim writes.

• Why it matters: Binance is the world's largest crypto exchange, and CZ has long been the most powerful player in the industry — even before Sam Bankman-Fried's downfall.

Binance will pay $4.3 billion in fines to settle U.S. criminal and civil charges in what Treasury Secretary Janet Yellen called a "historic action."

• Get the latest ...

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Largest crypto exchange Binance fined $4 billion, CEO pleads guilty to not stopping money laundering

WASHINGTON (AP) — The U.S. government dealt a massive blow to Binance, the world’s largest cryptocurrency exchange, which agreed to pay a roughly $4 billion settlement Tuesday as its founder and CEO Changpeng Zhao pleaded guilty to a felony related to his failure to prevent money laundering on the platform.

https://apnews.com/article/cryptocurrency-exchange-binance-justice-department-settlement-sec-8314e9697b98cfe3a9827c78e5720914?

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Crypto lives!

Data: CoinGecko. Chart: Axios Visuals Bitcoin yesterday touched $42,000 — a level not seen since May 2022, before the collapse of a stablecoin called TerraUSD heralded the start of the industry's meltdown. Why it matters: The price surge comes thanks to optimism about the possibility of a Bitcoin exchange-traded fund (ETF), plus expectations for Fed rate cuts buoying riskier assets, Axios' Matt Phillips writes. ? Zoom out: The market has centralized, with big exchanges operating under the watchful eye of the U.S. government.

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?️ Scoop: Crypto's '24 war chest

Illustration: Maura Losch/Axios

Cryptocurrency industry leaders have poured $78 million into bolstering the ranks of crypto-friendly lawmakers on Capitol Hill, Axios' Andrew Solender reports. The fundraising groups are crypto-focused super PAC Fairshake, along with affiliated PACs Protect Progress and Defend American Jobs. Why it matters: The immense figure — raised in just three months, with nearly a year to go before Election Day — puts crypto on track to rival more established industries in political giving. The money comes from a coalition of crypto companies, executives and investors, including Coinbase, Andreessen Horowitz and the Winklevoss twins. The sum represents a collective effort to detoxify crypto's image in the campaign fundraising world after the fall of FTX founder and prolific political donor Sam Bankman-Fried. ? What to watch: Donations will go to congressional candidates in both parties who are "pro-innovation, pro-responsible regulation, pro-crypto, pro-blockchain technology," an operative told Axios. Read on.

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? No second SBF trial

Sam Bankman-Fried is escorted outside Manhattan federal court on March 30. Photo: David Dee Delgado/Reuters Prosecutors told a judge that they don't need a second trial of FTX founder Sam Bankman-Fried ahead of his sentencing at the end of March, Axios' Kia Kokalitcheva writes. He faced six more charges, including campaign finance violations and conspiracy to commit bribery. But prosecutors told U.S. District Judge Lewis A. Kaplan that most of the evidence has already been shown, and a second trial would ignore the "strong public interest in a prompt resolution." ? What we're watching: Bankman-Fried awaits sentencing and is expected to appeal. Go deeper.

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Bitcoin hits $45K for first time since April 2022

Bitcoin's 12-month surge continued into the new year, with the price of the original cryptocurrency hitting $45,000 Tuesday for the first time since April 2022.

https://www.axios.com/2024/01/02/bitcoin-price-btc-today-update-chart-2024?

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SBF’s Victory From Behind Bars

The cryptocurrency industry landed one of its most desired prizes last month when regulators at a small but potentially pivotal federal agency allowed a little-known cryptocurrency company to oversee all aspects of brokering, facilitating, and clearing trades of its digital assets.

https://www.levernews.com/sbfs-victory-from-behind-bars/?

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⚡ Scoop: Crypto's big day

Illustration: Sarah Grillo/Axios

The first Bitcoin ETFs — a huge milestone for the crypto industry — could gain regulatory approval as soon as tomorrow, with more than one fund preparing to launch trading Thursday morning, Axios Crypto's Crystal Kim scoops. Why it matters: Barring an eleventh-hour rejection from the SEC, getting in on bitcoin will soon become as easy as investing in the S&P 500 index. ?️ The big picture: Offering an easy button to add the world's biggest cryptocurrency to investment portfolios would be a feat 10 years in the making. Its promise has drawn some of the biggest money managers in the world, including BlackRock and Fidelity — the folks that offer low-cost funds for retirement accounts. Data: CoinGecko. Chart: Axios Visuals Between the lines: The SEC said hackers that gained access to its official account on X posted a fake announcement saying the ETFs were approved. The price of bitcoin soared before plummeting. Keep reading.