Bitcoin News and Finance: What You Need to Know

It’s been another wild week in crypto, with a claimed FTX insider revealing a controversial document related to former Alameda Research CEO Caroline Ellison’s account at FTX. In related news, Elon Musk has been criticized for suggesting that former FTX CEO Sam Bankman-Fried (SBF) probably donated much more than publicly admitted to Democrats. Morgan Creek Capital CEO Mark Yusko has suggested that SBF was a “pawn” used by higher-ups to punish crypto. These stories and more in this latest edition of the Bitcoin.com News Week in Review. Document Claims Alameda CEO Caroline Ellison’s FTX Margin Position Was Negative $1.3B in May 2022 In a number of recent interviews, the former co-founder of FTX, Sam Bankman-Fried (SBF), explained that he “wasn’t running Alameda” and he “didn’t know the size of their position.” In a more recent discussion with The Block’s Frank Chaparro, SBF explained that auditors were looking at FTX’s corporate financials, but the auditors were “not looking at custom

Law enforcement authorities in the United Arab Emirates have detained a top Finiko representative, sought for his role in the crypto Ponzi scheme which defrauded thousands of investors around the world. This is the second arrest in the Gulf state of a high-ranking member of the pyramid announced in the past month. Finiko Fraudster Caught by Interpol in UAE, Russia Seeks His Extradition Another individual involved in organizing Russia’s largest financial pyramid in recent years, Finiko, has been placed under custody in the UAE. The detention of Edward Sabirov in the Arab country comes after last month’s news of the arrest of the Ponzi scheme’s co-founder, Zygmunt Zygmuntovich. Both have allegedly played key roles in the embezzlement of millions from the fraud’s victims. Sabirov was put on an international wanted list on Nov. 12, the Russian Prosecutor General’s Office told the RIA Novosti news agency. The National Bureau of Interpol of the United Arab Emirates announced his arrest

Ethereum is almost universally credited for kickstarting the Web3 revolution after it brought to life the concept of smart contracts. However, some in the Web3 community, like Astar Network’s Sota Watanabe, believe the protocol cannot “build the innovative future of blockchain alone.” In addition, some critics point to the language obstacle which they argue makes the Ethereum Virtual Machine (EVM) a less-than-ideal place to build. Webassembly Smart Contracts ‘Will Accelerate the Adoption of Web3’ It is this and other limitations of the EVM that led to the creation of an alternative known as Webassembly (WASM). This alternative is said to be a virtual machine of choice for developers, engineers and academics that are frustrated with the EVM. According to Watanabe, for Web2 developers that want to migrate to Web3, WASM seems like a logical choice because it “supports a wide range of languages with native performance and high portability.” To learn more about WASM, Bitcoin.com News re

Russian citizens and businesses already own cryptocurrencies, which is why a complete crypto ban would be counterproductive, according to a top executive of Rosfinmonitoring, Russia’s financial intelligence agency. At the same time, the regulator supports prohibiting payments with digital coins and their advertising. Rosfinmonitoring Backs Government’s Strategy to Strictly Regulate Cryptocurrencies in Russia The Federal Financial Monitoring Service of the Russian Federation ( Rosfinmonitoring ) supports the adoption of strict rules for cryptocurrencies, as per the regulatory concept approved by the government, the agency’s Deputy Director Herman Neglyad said in an interview with Izvestia. However, the official also indicated to the Russian daily that a full ban is unlikely, elaborating: We understand that citizens and legal entities already own digital currency and in such conditions, it would be counterproductive to introduce a complete ban on the circulation of cryptocurrencies.

A class action lawsuit against Kim Kardashian and Floyd Mayweather Jr. over their promotion of crypto token ethereummax has been dismissed. The judge stated that the law “expects investors to act reasonably before basing their bets on the zeitgeist of the moment.” Crypto Lawsuit Against Kim Kardashian Dismissed A federal judge dismissed a proposed class action lawsuit on Wednesday against Ethereummax’s founders and the crypto project’s celebrity endorsers, including reality TV star Kim Kardashian, boxer Floyd Mayweather Jr., and former Boston Celtics star Paul Pierce. In his ruling, Judge Michael Fitzgerald of the U.S. District Court for the Central District of California agreed that the lawsuit’s claims raised legitimate concerns about “celebrities’ ability to readily persuade millions of undiscerning followers to buy snake oil with unprecedented ease and reach.” However, he explained: While the law certainly places limits on those advertisers, it also expects investors to act r

Billionaire Elon Musk, the CEO of Tesla and Spacex, has warned that the recession will be “greatly amplified” if the Federal Reserve raises interest rates again next week. He added that things will “probably start looking better” in the second quarter of 2024. Tesla CEO Elon Musk on Recession and Fed’s Rate Hikes Tesla CEO and Twitter chief Elon Musk has reiterated his warning about a recession in the U.S. He tweeted Friday that if the Federal Reserve raises interest rates again next week, the “recession will be greatly amplified.” Musk was further asked on Twitter how long he thinks the recession will last. The Tesla boss replied: Just a rough guess, but things probably start looking better in Q2 2024. This was not the first time Musk warned about the consequences of the Fed hiking interest rates. At the end of November, the billionaire said the trend was concerning. He urged the Federal Reserve to cut interest rates immediately, stating that the U.S. central bank is “massiv

The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, says that bitcoin investors will get richer when the Federal Reserve, the Treasury, and Wall Street pivot and trillions of dollars are printed. Robert Kiyosaki Predicts Bitcoin Investors Will Get Richer The author of Rich Dad Poor Dad, Robert Kiyosaki, has predicted that owners of bitcoin will get richer while “fake money savers” will be the biggest losers. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries. Kiyosaki tweeted Thursday that people who own gold, silver, and bitcoin will get richer when the Federal Reserve, the Treasury, and Wall Street pivot and trillions of dollars are printed. “Fake money savers will be the biggest losers,” he stressed. The famous author has warned on several occasions

After Chipper Cash ended 2021 as one of Africa’s most valued fintechs, the FTX-backed startup’s valuation dropped from $2 billion to $1.25 billion after it reportedly received a $35 million simple agreement for future equity (SAFE) grant from the now-collapsed crypto exchange FTX. Chipper Cash has also reportedly laid off 50 employees as it seeks to cope with the deteriorated macroeconomic environment. FTX’s Simple Agreement for Future Equity Chipper Cash, one of the several African fintech startups to receive funding from FTX, saw its valuation drop from $2 billion to $1.25 billion after it secured additional funding from the now-collapsed crypto exchange, a Techcrunch report has said. The latest revelation came just as Chipper Cash was reported to have retrenched as many as 50 employees. As previously reported by Bitcoin.com News, Chipper Cash, which was launched in 2018 by Ham Serunjogi and Maijid Moujaled, saw its valuation rise to over $2 billion after it received $150 milli

The states of the European Union have convened to establish a new limit on cash purchases and to strengthen the controls on cryptocurrency transactions. On Nov. 6 the bloc agreed to put a limit of €10,000 ($10,557) on cash payments and to exert stronger oversight on crypto transactions of over 1,000 euros ($1,055). European Union to Limit Cash Usage, Ostensibly to Fight Money Laundering The countries of the European Union have announced a set of new directives to make more difficult the usage of cash and other alternative currencies like crypto for criminal purposes. On Nov. 6, the bloc approved a new limit for cash payments, that will permit up to €10,000 ($10,557) in all of the countries that are part of the union. However, countries will be allowed to reduce the limit even more. Currently, Spain has one of the lowest limits in this regard, allowing citizens to only pay up to €1,000 ($1,055) with cash. However, the European Central Bank (ECB) expressed its disagreement with thi

The government of Argentina has designated a national blockchain committee in order to establish the directives for a state-level blockchain adoption strategy. In a document, Argentina remarks on the importance of this tech for the future and presents several use cases that would benefit from the introduction of blockchain for the digital transformation of the country. Argentina Forms National Blockchain Committee More and more countries are now taking a look at how the implementation of blockchain tech can improve some of their public functions. Argentina has recently issued its blockchain national guidelines. The document , presented on Dec. 7, also creates a national blockchain committee, that will have the responsibility to “act as an interlocutor in the local blockchain ecosystem promoting the interoperability of blockchain technologies and a good government.” The committee will be constituted by the Public Innovation Secretariat and other organizations of the state that will

The meme coin economy has seen its value increase 7.77% against the U.S. dollar during the last month, as the meme token market leader dogecoin jumped 29.4% higher in 30 days. Dogecoin has also managed to move from the ninth-largest market cap position to the eighth-largest crypto market valuation this past month. Shiba inu, on the other hand, dropped from the thirteenth largest market cap to the fourteenth spot. Meme Tokens Gained Over 7% Against the Greenback Over the Past Month Amid the craziness with FTX and before the bankruptcy filing, meme coins took a hit when the crypto economy experienced significant fluctuations in value. On Nov. 9, two days before FTX filed for Chapter 11 bankruptcy protection, the meme token economy was valued at $18 billion. Dogecoin (DOGE) suffered a big loss that day dropping 16.5% against the U.S. dollar, according to an archive.org snapshot of coingecko.com stats on Nov. 9, 2022. The second largest meme coin in terms of market capitalization s

The Russian Ministry of Internal Affairs is now using a digital tool allowing officers to link cryptocurrency wallets to their owners. The software also has a feature facilitating the monitoring of crypto asset transactions, the department told Russian media. Russian Police Brag About New Crypto Tracing Tool on Eve of Anti-Corruption Day Employees of MVD, the Ministry of Internal Affairs of the Russian Federation, now have access to a specialized digital platform called “Personal account of a law enforcement agency,” Tass reported. The ministry revealed to the news agency that it’s identifying owners of cryptocurrency wallets using the new system. “This digital project has already been implemented and is successfully operating,” the head of MVD’s Main Department of Economic Security and Anti-Corruption, Police Lieutenant General Andrey Kurnosenko, told Tass on the eve of the International Anti-Corruption Day, celebrated on Dec. 9 to raise public awareness for efforts to combat corr

This week two cryptocurrency exchanges provided proof-of-reserves in order to highlight that the trading platforms are backing customer assets 1:1. Binance published its report on Dec. 7, 2022, and detailed the global auditor Mazars Group conducted the audit. On Dec. 9, 2022, the exchange Crypto.com published proof-of-reserves records and the verification was also conducted by Mazars. Binance and Crypto.com Reveal POR Audits Two very large crypto exchanges provided proof-of-reserves (POR) documentation this week following the promises made by exchange executives after the FTX fiasco. The world’s largest crypto exchange, in terms of trade volume, Binance, revealed a comprehensive look at assets like BTC , BTCB, and BBTC hosted on Mazars Group’s website that shows assets held on Bitcoin, Ethereum, BNB , and Binance Smart Chain networks. The audit by Mazars took place on Nov. 22, 2022, at Bitcoin block height 764,327, and the report claims assets are backed 101% by collateralized res

PRESS RELEASE. INTERNET CITY, DUBAI, Dec. 9, 2022 – LBank Exchange, a global digital asset trading platform, has listed SILK on December 9, 2022. For all users of LBank Exchange, the SILK/ USDT trading pair is now officially available for trading. As the first web3 esports with earnings, Spider Tanks enables players to earn for their play through its complex and brilliantly designed reward economy. Its native token SILK has been listed on LBank Exchange at 13:00 UTC on December 9, 2022, to further expand its global reach and help it achieve its vision. Introducing Spider Tanks Spider Tanks is a blockchain-based PVP brawler created by award-winning Netherlands based GAMEDIA and brought to players by Gala Games. Players choose between a number of Tank Bodies and Weapons in the garage, then battle it out in one of the many Spider Tanks arena maps. And since all tank parts are owned as NFTs, they can be upgraded, then sold on the secondary market at any time the player chooses. Di

Gridless, a bitcoin mining company operating from Kenya, recently raised $2 million in seed investment from Block, a digital payments company owned by Twitter founder Jack Dorsey, and Stillmark. The bitcoin mining firm is reportedly planning to use the capital raised to fund its expansion into other African countries. Using Revenue Generated From BTC Sales to Subsidize the Cost of Power A Jack Dorsey-owned digital payments firm, Block, and Stillmark, a bitcoin-focused venture firm, are reported to have led a $2 million seed investment in African crypto mining company Gridless. According to a report, Gridless, which currently operates in Kenya’s rural areas, plans to fund its expansion into other African countries with the capital raised. As reported by Bitcoin.com News in October, Gridless harnesses excess electricity generated by mini-hydropower plants to mine bitcoin. The bitcoin is then sold and the revenues generated are used to subsidize the cost of electricity to users in K

On Dec. 8, 2022, three Democratic politicians from Massachusetts, Oregon, and California revealed legislation aimed at combatting “energy-intensive” cryptocurrency mining operations. The bill introduced by senator Ed Markey (D-MA) alleges that crypto mining “strains the grid” and the industry “undermines U.S. climate goals.” 3 U.S. Bureaucrats Believe Crypto Miners Need to Report Carbon Emissions and Environmental Assessments Senators Ed Markey (D-MA), Jeff Merkley (D-ORE), and Jared Huffman (D-CA) have introduced a bill that would require “an interagency study on the environmental and energy impacts of crypto asset mining.” Markey’s press release concerning the “Crypto Asset Environmental Transparency Act” details that the U.S. Environmental Protection Agency (EPA) would lead the study. Furthermore, the EPA would assess crypto mining activity in the U.S. and operations would be required to report greenhouse gas (GHG) emissions. Crypto mining companies required to report GHG emiss

The cryptocurrency and mining law that the Paraguayan Congress passed in June was finally shelved on Dec. 5. The document, which sought to bring order to crypto mining and exchange activities in Paraguay, was ultimately dropped after failing to obtain the votes needed to reject the presidential veto it received. Paraguayan Crypto Law Dropped After Support Wanes The Paraguayan cryptocurrency law that was introduced in Congress in 2021 was finally shelved after not receiving the support it needed in the Deputy Chamber. The project, which was vetoed in September by President Mario Abdo, failed to gather the votes needed in order to reject this veto. The veto had previously been rejected by the Paraguayan senate, which aimed to approve and pass the law without presidential support. The veto had the support of the Commission for Industry, Commerce, Tourism, and Cooperatives; while the Economic and Financial Affairs, and the Fight against Drug Trafficking, Related and Serious Illicit

Shark Tank star Kevin O’Leary, aka Mr. Wonderful, has revealed that the collapsed crypto exchange FTX paid him about $15 million to become its spokesperson. “I put about $9.7 million into crypto. I think that’s what I lost. I don’t know. It’s all at zero,” O’Leary said. Kevin O’Leary Was Paid $15M by FTX Shark Tank star Kevin O’Leary revealed in an interview with CNBC Thursday that the collapsed crypto exchange FTX paid him about $15 million last year to become its spokesperson . Noting that he fell prey to “groupthink,” O’Leary detailed: Total deal was just under $15 million, all in … I put about $9.7 million into crypto. I think that’s what I lost. I don’t know. It’s all at zero. The Shark Tank star further revealed that he also had over $1 million of FTX equity, which is now rendered worthless due to the bankruptcy protection process. In addition, Mr. Wonderful explained that the balance of a little over $4 million was purportedly eaten up by taxation and agent fees. He admi

Two congressional hearings will be held next week on the collapse of cryptocurrency exchange FTX and U.S. lawmakers have asked former FTX CEO Sam Bankman-Fried (SBF) to testify. As the founder of FTX and Alameda Research, “you must answer for the failure of both entities that was caused, at least in part, by the clear misuse of client funds and wiped out billions of dollars owed to over a million creditors,” Senator Sherrod Brown told Bankman-Fried. 2 Congressional Hearings on FTX Set for Next Week The House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs are separately holding a hearing on the collapse of crypto exchange FTX next week. U.S. Senator Sherrod Brown (D-Ohio), chair of the Committee on Banking, Housing, and Urban Affairs, sent a letter to former FTX CEO Sam Bankman-Fried (SBF) Wednesday asking him to attend his committee’s hearing titled “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers” that will take pla