Collapsed Crypto Exchange FTX Regains Over 5 Billion in Assets
“FTX has regained over 5 billion in assets.” one defense team member responded. However, a United States bankruptcy court received a report that the limit of losses to users is still unavailable.
In addition, this action might have costed customers, investors, and creditors trillions. The former FTX Chief Executive Officer still pleads not guilty to allegations that Mr. Bankman deceived customers and investors.
Andy Dietderich, a member of the SBF defense team, announced that the located funds did not include funds withheld by the SEC of the Bahamas, where the company was located, and Mr. Sam Bankman was based at the time of his capture.
Meanwhile, when the figures of losses to customers and investors remain unknown, Tom Brady, an American football star, his Ex-Wife, and Robert Kraft, the owner of the New England Patriots, were mentioned during the court proceedings.
Former Coinbase Manager’s Brother to Experience Life Behind Bars
The Ex-Manager’s brother was sent to prison for ten months in what the United States Department of Justice termed a ground-breaking insider trading case. In addition, the ex-managers brother pleaded guilty to conspiracy to be involved in wire fraud.
The DOJ announced that the brother was charged with involvement in committing crypto insider trading through the use of information that he acquired from his brother, the former manager of Coinbase Inc.
According to the department of justice, the former Coinbase manager listed which cryptocurrency would be listed on the exchange. The brother anonymously bought those digital assets before the firm could post them on its exchange, and he would then dispose of them for a profit.
Following these events, it is transparent that the crypto markets are not unregulated and that are serious consequences for illegal insider trading.
Lula’s Government to Re-examine the Brazil Crypto Law
The current national congress would re-examine the previously endorsed Brazilian crypto law to evaluate some issues that might have been left out before its approval. The major concern was whether to implement digital assets service providers to separate company funds from user funds.
However, analysts emphasized that implementing this in companies would affect their services because of capital constraints. Moreover, there is a need to implement these constraints to prevent the crypto exchange’s collapse.
The law will allow users to feel safer and more secure while investing in digital assets and allows the Brazilian Securities Commission to interrupt and investigate the companies in the case of any irregularities.
Brazil also announced the criminalization of crypto scams, issuing consequences to those inducted with crypto fraud.
Following the events, experts have shown their dissatisfaction with the Government, which passed the law, claiming that the revision is indeed a good start. However, there is a need for additional regulation to enhance what has already been published in the law.
The U.S Federal Government Focus on crypto
Following the collapse of the major cryptocurrency exchange FTX and other key exchanges in the crypto market. These events have enabled crypto activities to showcase risks to businesses, investors, and the financial system.
However, the Fed announced that it would not impose a judgment that hinders innovation. Instead, it would adopt innovation and develop the banking industry to accommodate these digital assets for the country to meet consumer demand.
Moreover, she stressed that the Federal Open Market Committee has a lot of work to be done, and the FOMC would have to raise interest rates following the monetary policy.
