FTX’s former CEO, Sam “SBF” Bankman-Fried, had his bail revoked by a federal judge after information was released to The New York Times in an alleged attempt to intimidate witnesses. Judge Lewis Kaplan determined that Bankman-Fried’s interviews with NYT reporters were intended to “hurt and frighten” his former colleague and girlfriend, Caroline Ellison. As a result, Bankman-Fried was led out of the courtroom in handcuffs and will likely be held at the Putnam County Correctional Facility until his trial begins in October.
In other news, the U.S. Securities and Exchange Commission (SEC) has delayed its decision on whether to approve or disapprove a spot Bitcoin exchange-traded fund (ETF) proposed by ARK Investment Management and 21Shares. This delay has raised expectations that a final decision will come alongside applications from other key players on Wall Street, including BlackRock and Fidelity Investments.
The SEC is also seeking an appeal and stay in its court case against Ripple Labs. The commission believes that the judge’s decision in favor of Ripple warrants a fresh look by an appellate court and has asked for the case to be put on hold during the appeal process. This legal battle is part of a larger effort by the SEC to crack down on alleged securities violations within the crypto industry.
In a significant move, PayPal has launched a new stablecoin called PayPal USD (PYUSD). Built on the Ethereum network, PYUSD is backed by U.S. dollar deposits and other cash equivalents. PayPal plans to make the stablecoin available as a mode of payment for various purchases, leveraging its vast user base of over 350 million active users.
On the legal front, 18 leading venture capital investment firms, including Temasek, Sequoia Capital, and SoftBank, are facing a class-action lawsuit for allegedly aiding and abetting the fraud committed by the now-bankrupt crypto exchange, FTX. The lawsuit claims that these investment firms used their influence and resources to propel FTX’s fraudulent activities to a multibillion-dollar scale.
In the cryptocurrency market, Bitcoin is currently trading at $29,379, while Ether is at $1,842 and XRP is at $0.63. The total market cap is at $1.17 trillion. Among the top 100 cryptocurrencies, the biggest gainers this week are THORChain (RUNE), Shiba Inu (SHIB), and dYdX (DYDX), while the biggest losers are GMX (GMX), Mantle (MNT), and XDC Network (XDC).
In conclusion, this week has seen significant developments in the crypto industry, including the revocation of Sam Bankman-Fried’s bail, the SEC’s delay in approving a Bitcoin ETF, and PayPal’s launch of a new stablecoin. The legal landscape has also seen action, with the SEC appealing the Ripple Labs court decision and VC firms facing a class-action lawsuit for their involvement with FTX. Overall, these events highlight the ongoing challenges and regulatory scrutiny facing the crypto industry.
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