Sam Bankman-Fried Charged And Arrested For FTX Collapse

 

Daily Mail: Ex-girlfriend of FTX boss Sam Bankman-Fried LAWYERS UP as he is arrested, charged and faces extradition to U.S. after 'defrauding investors out of $1.8BN in house of cards deception' 

* Sam Bankman-Fried was arrested in The Bahamas last night  

* He is now facing an indictment federal prosecutors and the SEC  

* The SEC charges say he defrauded investors out of $1.8billion by stealing funds 

* Bankman-Fried is accused of funneling money from his crypto platform FTX 

* His 'victims' would include Tom Brady, Gisele Bündchen and other stars  

Now that disgraced financier Sam Bankman-Fried has been charged with defrauding investors out of $1.8billion and is awaiting extradition back to the US from The Bahamas, speculation is turning now to whether or not his CEO ex-girlfriend Caroline Ellison will turn on him or also face charges too.   

Bankman-Fried, 30, was arrested in The Bahamas last night at the request of prosecutors from the US Attorney's office in the Southern District of New York. He is now also facing charges from the SEC.  

He is accused of stealing the money his investors plugged into FTX - his now defunct crypto trading platform - to cushion his own investment fund, Alameda. He used the money to buy lavish properties in The Bahamas and make political donations that some say went as high as $1billion.   

Read more ....  

Update #1: Former FTX CEO defrauded crypto investors, SEC alleges (AP)  

Update #2: Bankman-Fried charged by SEC, to appear in Bahamas court (Reuters)  

WNU Editor: It is about time that the authorities are moving to hold someone responsible for this massive fraud/scam.

This Is How Incredibly Bad The FTX Scandal Is

WNU Editor: From Small Dead Animals (see below): 

Tarl Warwick (aka ‘styxhexenhammer666’) has a comprehensive take on how incredibly bad the FTX scandal is. In case you’ve been sleeping under a rock, the basic scam is this: 

* The Democrats have ginned up the Ukrainian War and convinced Congress to donate billions in taxpayer money to Ukraine. 

* FTX convinced its investors that a good portion of its profits would be donated to the National Bank of Ukraine. 

* There are strong suspicions that some portion of this money sent to Ukraine was not used to fight Russia but was instead reinvested in FTX. 

* The Chief of FTX, Sam Bankman-Fried, was the #2 donor to the Democrats, just behind George Soros. To think that this didn’t buy him some “protection” would make you very naive. 

The fact that the legacy media is not openly reporting this massive scam is telling.  

Update: One half of The Duran provides his analysis, about 5 minutes into this video.  

Update 2: Robert Barnes and Viva Frei share their thoughts.

Crypto Markets In Chaos. Second Largest Exchange Files For Bankruptsy

 

Daily Mail: Crypto giant FTX files for bankruptcy after $32B collapse: CEO Sam Bankman-Fried, 30, resigns in disgrace in the face of SEC probe as lawyer who oversaw Enron liquidation takes over 

* FTX filed for Chapter 11 bankruptcy proceedings on Thursday, following a spectacular financial collapse 

* The crypto exchange was the world's fourth largest and recently valued as high as $32 billion 

* CEO Sam Bankman-Fried resigned amid allegations that he mishandled customer funds 

* SEC is probing reports that FTX misappropriated customer deposits to pay for risky hedge fund bets 

FTX, the troubled cryptocurrency exchange, has filed for bankruptcy after a stunning financial implosion exposed concerns about its handling of customer funds and rocked broader crypto markets. 

The Bahamas-based company, recently valued as high as $32 billion, said on Friday morning that it and its associated firms will file for Chapter 11 bankruptcy proceedings in federal court in Delaware. 

Embattled FTX founder and CEO Sam Bankman-Fried has resigned his role and will remain in an advisory role to assist in an 'orderly transition', the company said.  

Read more ....  

Update #1: Embattled crypto exchange FTX files for bankruptcy (AP)  

Update #2: Sam Bankman-Fried steps down as FTX CEO as his crypto exchange files for bankruptcy (CNBC)  

WNU Editor: FTX had a good thing going by just earning their commissions from customers who wanted to buy and sell their crypto assets on the platform. Unfortunately the egos and greed from the executives went out of control and now they are all facing years of litigation and the possibility of jail time. As for the customers and investors. Their money is gone forever. 

And now there are worries that the collapse of FTX is going to spread to other platforms .... Crypto Lender BlockFi Suspends Withdrawals in FTX Contagion (Bloomberg). 

Why people keep their crypto assets in these exchanges has always escaped me. Get your own crypto wallet, and keep your crypto wealth there.

Cryptocurrencies In Chaos

 

CNBC: Binance backs out of FTX rescue, leaving the crypto exchange on the brink of collapse 

* Binance is backing out of its plans to acquire FTX, the company said Wednesday. 

* “The issues are beyond our control or ability to help,” Binance said in a tweet. 

* FTX, which was valued at $32 billion earlier this year, is now in jeopardy of collapsing. 

Binance is backing out of its plans to acquire FTX, the company said Wednesday, leaving Sam Bankman-Fried’s crypto empire on the verge of collapse. 

The reversal comes one day after Binance CEO Changpeng Zhao announced that the world’s largest cryptocurrency firm had reached a nonbinding deal to buy FTX’s non-U.S. businesses for an undisclosed amount, rescuing the company from a liquidity crisis. 

Earlier this year, FTX was valued at $32 billion by private investors.  

Read more ....  

WNU editor: This is what a run on a bank looks like. But in this case it was done on a the world's second largest crypto exchange. 

FTX is finished. No one is going to trust them after this. And they certainly will not trust Sam Bankman-Fried.

It should also be added that this impacts a lot of Americans .... 14% of Americans Own Crypto Right Now – Here’s Who’s Actually Doing It Right (GoBankingRates). 

This is also a huge blow to the Democrat party in the U.S.. FTX CEO Sam Bankman-Fried is one of their biggest donors .... Sam Bankman-Fried’s $16 Billion Fortune Is Eviscerated in Days (Bloomberg).  

Update: No kidding .... SBF Issues Mea Culpa: "I'm Sorry... I F**ked Up" As Alameda Research Winds Down Trading (Zero Hedge). 

 Crypto Assets In Chaos 

Cryptocurrency exchange FTX now worthless, says key investor -- The Guardian  

Crypto giant Binance drops bid to save rival, stoking chaos in digital assets -- CNN  

FTX is crypto's most crushing crash -- Axios  

EXCLUSIVE Behind FTX's fall, battling billionaires and a failed bid to save crypto -- Reuters

Canada's Emergency Act Targeting Cryptocurrencies

 

Markets Insider: Canada targets crypto donations to protestors after Trudeau invokes Emergencies Act to quell anti-government demonstrations 

* Prime Minister Justin Trudeau invoked the Emergencies Act in response to Canadian trucker protestors. 

* The government also expanded anti-money laundering and counter-terrorist financing rules to include crowdfunding and crypto. 

* The move comes after Canadian truck protestors raised more than $1 million in bitcoin. 

Canadian Prime Minister Justin Trudeau invoked the Emergencies Act on Monday in response to the truck drivers protesting pandemic mandates in Ottawa, and included in the response is more scrutiny into cryptocurrency donations and fundraising for protestors. 

The move comes after the truckers, who have blocked bridges critical to international trade, raised more than $1 million in bitcoin before the organizers closed their fundraising page. Under the Emergencies Act, the government can use its power to freeze or suspend bank accounts without a court order or liability, among other things.  

Read more .... 

Canada's Emergency Act Targeting Cryptocurrencies  

Canada's Trudeau Enacts Emergencies Act, and Crypto Is Included -- Coin Desk  

Trudeau Says He'll Freeze Bank Accounts; Crypto Fans Point to Bitcoin -- CryptoBriefing  

Canada’s Trudeau invokes Emergencies Act to include crypto transactions -- Finbold  

Crypto Caught in Crossfire as Canada’s PM Trudeau Invokes Emergencies Act -- PYMNTS.com

Where Cryptocurrency Is Most Heavily Used

Statista: Where Cryptocurrency Is Most Heavily Used  

A report by Chainalysis shows which countries are the heaviest users of cryptocurrencies around the world, weighing transaction values by purchasing power and putting a special focus on non-professional and peer-to-peer use to gauge which countries have really made strides in adopting crypto use across a larger swath of their populations. 

Vietnam is the undefeated winner of the ranking, scoring high on overall crypto transaction value as well as payments made by individuals. The smaller country’s incoming cryptocurrency transaction value wasn’t far below that of much larger India.  

Read more ....  

WNU Editor: The report is here .... The 2021 Geography of Cryptocurrency Report (Chainalysis).

White House Says That Due To A Matter Of National Security It Will Implement Crypto Rules

Post Millennial: Biden administration to regulate Bitcoin, NFTs and cryptocurrencies as matter of 'national security' within weeks 

The Biden administration has expressed its intent to develop a cohesive set of policies to regulate Bitcoin and cryptocurrencies as current legislation and enforcement are too scattered across the board – arguing that the move is a matter of national security. 

According to Bloomberg, the White House will release an executive order in the coming weeks to task federal agencies with assessing the risks and opportunities posed by cryptocurrency. The publication reports that senior officials of the Biden administration held multiple meetings on developing the plan, with a full directive coming down from President Biden in a few weeks. 

It’s set to come under the umbrella of national security efforts as the administration wants to analyze cryptocurrencies sand employ a “cohesive regulatory framework” that would cover Bitcoin, alt-coins, stablecoins, and even NFTs, Barron’s reported.  

Read more ....  

WNU Editor: This has nothing to do with national security. This is all about controlling/limiting/and eliminating a competitor to government monetary/financial policy. 

 White House Wants To implement Crypto Rules

White House Wants Crypto Rules as a Matter of National Security -- Barron's  

White House Is Set to Put Itself at Center of U.S. Crypto Policy -- Bloomberg 

President Joe Biden Is Going After Bitcoin, Other Cryptocurrencies And NFTs -- Forbes  

White House is set to put itself at center of US crypto policy -- Boston Herald

Russia's Central Bank Wants To Ban Cryptocurrencies

Elizaveta Danilova, the director of the Bank of Russia's Financial Stability Department (Bank of Russia webcast)

RT: Russia set for complete ban on cryptocurrencies  

The move would see crypto transactions banned in the world’s largest country  

The Bank of Russia has unveiled proposals that would see the sale, mining and circulation of cryptocurrencies banned as part of a radical move that finance chiefs say would protect the economy from the risks associated with digital currencies. 

In a statement issued on Thursday, the Central Bank argued that “the status of the Russian ruble, which is not a reserve currency, does not allow Russia to take a soft approach or ignore the growing risks.”  

Read more ....  

WNU Editor: I understand why many are concerned about cryptocurrencies. The lack of regulation, stability, and reliability. But like it or not cryptocurrencies are the future, and this outright ban is is a mistake. 

Russia's Central Bank Wants To Ban Cryptocurrencies  

Russian Central Bank Calls For Ban of Cryptocurrency Mining -- Sputnik  

Russian central bank proposes banning cryptocurrencies, crypto mining -- Reuters  

Russia's central bank is calling for a sweeping ban on crypto activity from mining to trading -- Insider  

Bank of Russia Calls for Full Ban on Crypto -- CoinDesk

China Declares All Cryptocurrency Transactions Illegal

 

CNBC: China’s central bank says all cryptocurrency-related activities are illegal, vows harsh crackdown 

* The People’s Bank of China said services offering trading, order matching, token issuance and derivatives for virtual currencies are strictly prohibited. 

* Overseas cryptocurrency exchanges providing services in mainland China are also illegal, the PBOC said. 

* It’s not the first time China has gotten tough on cryptocurrencies.

Earlier this year, Beijing announced a crackdown on crypto mining. 

China’s central bank renewed its tough talk on bitcoin Friday, calling all digital currency activities illegal and vowing to crack down on the market. 

In a Q&A posted to its website, the People’s Bank of China said services offering trading, order matching, token issuance and derivatives for virtual currencies are strictly prohibited. 

Overseas crypto exchanges providing services in mainland China are also illegal, the PBOC said.  

Read more ....  

WNU Editor: More signs that China is reigning in its economy. 

More News On China Declaring All Cryptocurrency Transactions Illegal  

China says all crypto transactions illegal; Bitcoin tumbles -- AP  

China's central bank declares all cryptocurrency transactions illegal -- France 24  

China declares transactions involving cryptocurrencies illegal -- The Guardian  

Bitcoin plummets after China intensifies cryptocurrency crackdown -- CNN  

China says all crypto-related transactions are illegal, again vows crackdown -- NYPost

U.S. Congress Likely To Pass Infrastructure Bill That Threatens To 'Kill' The Crypto Industry

Business Insider: Crypto organizations say $28 billion tax plan in Senate infrastructure bill poses an 'imminent threat' to the industry 

* Crypto leaders said new tax provisions in the Senate infrastructure plan were an "imminent threat." 

* The Senate bill added new reporting rules for crypto trading firms and brokers. 

* The estimated $28 billion in new taxes would help fund President Joe Biden's infrastructure package. 

Cryptocurrency organizations have asked Congress to reconsider language in the Senate's infrastructure bill that posed an "imminent threat" to the industry. 

President Joe Biden's $1.2 trillion infrastructure package, which includes hundreds of billions in funding for roads, railways, and broadband access, would be partly financed by increasing revenue from taxes on cryptocurrencies, according to The White House.  

Read more ....  

Update #1: It’s Not About Taxes, Congress is Coming After the Entire US Crypto Industry (Bitcoin Exchange)  

Update #2: Congress Likely to Pass $550 Billion Infrastructure Bill That Threatens to 'Kill' Crypto Industry (Decrypt) 

WNU Editor: Cryptocurrencies have increased substantially in the past week. If this bill passes, I think some of this enthusiasm is going to evaporate.

Why I Do Not Invest In Cryptocurrencies

CNBC: Why tether, the world’s third-biggest cryptocurrency, has got economists worried  

* Tether is the third-biggest cryptocurrency in the world by market value. And it’s got some economists — including an official at the Federal Reserve — worried. 

* Boston Fed President Eric Rosengren recently raised the alarm about tether, calling the cryptocurrency a potential financial stability risk. 

* Some investors believe a loss of confidence in tether could be crypto’s “black swan,” an unpredictable event that would severely impact the market. 

Tether is the third-biggest cryptocurrency in the world by market value. And it’s got some economists — including an official at the U.S. Federal Reserve — worried. 

Last month, Boston Fed President Eric Rosengren raised the alarm about tether, calling it a potential financial stability risk. Meanwhile, some investors believe a loss of confidence in tether could be crypto’s “black swan,” an unpredictable event that would severely impact the market. 

The issues surrounding tether hold significant implications for the nascent cryptocurrency world. And economists increasingly fear that it could also impact markets beyond digital currencies. Here’s what you need to know:  

Read more ....  

WNU Editor: Former Google and Facebook Techlead Patrick Shyu explains why Tether is a problem and why cryptocurrencies may face a black swan event in the near future (see video below). This talk about Tether is also old news. Check out this news article from two years ago .... Tether's U.S. Dollar Peg Is No Longer Credible (Forbes). 

But times are different now. We live in a huge economic bubble right now, and IMHO it will only take one major event to burst it. The above CNBC article is very clear in expressing its worries that Tether could be one of those events. 

Full disclosure. I am a former investor in Tether, Bitcoin, and a few other alt-coins. No more now. 

Cryptocurrencies Continue To Crash In Value

Coindesk: Bitcoin Suffers Steepest Drop in 10 Days as US Monetary Policy Causes ‘Short-Term Jitters’  

Bitcoin continues its descent amid whispers of U.S. Federal Reserve tapering economic stimulus and China's ongoing pressure on crypto miners.  

Bitcoin’s price has fallen to its lowest point in over a week as traders stare down prospects of shifting U.S. monetary policy and continued tightening of regulation of cryptocurrencies in China. 

At 20:00 UTC on Monday, the price of the world’s foremost crypto began declining from around $35,466 to a low of $33,221. 

Prices were up slightly on the hour, and one bitcoin (BTC, -10.17%) was changing hands for roughly $33,793 at the time of publication. 

The move marked the largest single daily loss for the bulls after dropping 6.2%, the most since May 28, amid sell pressure egged on by fading bullish investor sentiment.  

Read more ....  

WNU Editor: Its been a bad week for cryptocurrencies starting with this news last week .... Cryptocurrency dealers face closure for failing UK money laundering test (The Guardian). Followed by this .... Trump: Bitcoin's a scam, US dollar should dominate (FOX News). Followed by China actually finally doing something to end Bitcoin dealing on Chinese platforms .... China blocks cryptocurrency Weibo accounts in ‘judgment day’ for bitcoin (The Guardian/Reuters). And now everything this evening is crashing (The above screenshot was taken on Monday at 23:45 EST. The funds are in Canadian dollars).

Cryptocurrencies Continue To Crash

Yahoo News: Bitcoin continues downward spiral after volatile week that crashed crypto market 

Crypto investors have been kept on their toes after China, Elon Musk and regulation fears sent a number of popular tokens deep into the red in recent days. The volatility shaved billions off the wider crypto world's value after deep correction hit the market. 

The global crypto market lost 9% in the last 24-hours alone, according to data provider CoinMarket. Bitcoin (BTC-USD), ethereum (ETH-USD) and dogecoin (DOGE-USD) have been struggling to return to the record highs recorded in April since the turmoil, with prices yo-yoing throughout the week. 

The price wash out continued on Sunday, with bitcoin dipping as much as 14.5% to $33,038 (£23,347) around 2:30PM in London, after brief gains on Saturday. 

Other currencies followed a similar trajectory, ethereum — the world's second largest crypto — crashed 23% to trade at $1,901, while dogecoin fell as much as 20% to $0.28 during the session. 

Read more ....  

WNU Editor: Almost $1 trillion has been written off in the crypto markets in the past two weeks. It looks like this is a trend, and the bottom has yet to be seen.

Crypto Markets Are Crashing After China Again Vows To Crackdown On Mining And Trading

BREAKING: China attempts to ban #Bitcoin for like the 1000th time.

— Bitcoin Magazine (@BitcoinMagazine) May 21, 2021

Zero Hedge: Cryptos Crash After China Again Vows Crackdown On Mining And Trading 

Another day, another attempt by China - where the reception of the digital yuan has been a total disaster so far much to Beijing's complete humiliation - to crash Crypto, with Reuters and Bloomberg reporting moments ago that just two days after the PBOC barred financial institutions from accepting bitcoin as payment, China's vice premier Liu He said (at 11pm on Friday local time) that China will crack down on bitcoin mining and trading activities, which of course is what we already knew.  

Read more ....  

Update: Bitcoin stages fresh selloff as China reiterates crypto crackdown plans (Market Watch)  

WNU Editor: Cryptocurrencies are the future. But not today.