Key Developments in the SBF Trial, CZ's Unsuccessful Crypto Fund, and Blocking of Hamas Accounts

Key Developments in the SBF Trial, CZ's Unsuccessful Crypto Fund, and Blocking of Hamas Accounts
Photo by Zane Lee / Unsplash

The cryptocurrency space, which has often seen its fair share of drama, has been rife with major revelations and announcements this week. Here's an exhaustive look at the series of events:

1. Revelations in the Sam Bankman-Fried (SBF) Trial:

Former Alameda Head Testifies Against SBF:

Caroline Ellison, the ex-head of Alameda, took the stand against Sam Bankman-Fried, fondly known in the industry as SBF. She confessed to fraudulent activities and shockingly stated these actions were carried out under the direct instructions of SBF. Ellison further divulged SBF's ambitious aspirations to become the President of the United States.

Alleged Plot Against Binance:

She claimed that SBF instructed her to find leverage against the colossal crypto exchange, Binance, with the aim of drawing the attention of regulatory bodies. Throughout the court proceedings, Ellison claimed that Changpeng Zhao (commonly known as CZ), the founder of Binance, took targeted actions against FTX. It's essential to note that CZ had earlier intentions to acquire the assets of the exchange, but he later publicly rescinded this agreement, citing internal company issues.

Forgery Allegations:

Bankman-Fried's former girlfriend further confirmed the forgery of documents with the intention of concealing the financial woes of Alameda Research.

The U.S. Department of Justice (DOJ) Requests:

The prosecution believes SBF's involvement in funding Anthropic should not serve as an excuse for defrauding client funds. They've also sought a ban on mentions of potential compensation for FTX client losses during the trial.

Co-founder of FTX Confirms Data Manipulation:

Gary Wan, co-founder of FTX, admitted to altering data relating to an insurance fund. He revealed that FTX had distorted fund data to the tune of $100 million. This manipulation was reportedly done using randomly generated numbers. Wan had previously confessed to securities fraud.

SBF Blames Binance for Information Leak:

Sam Bankman-Fried accused Binance of leaking Alameda Research's balance report for November 2022 to the press.

2. Israel, HAMAS, and Cryptocurrencies:

HAMAS-Linked Groups Collect Cryptocurrency Donations:

According to the Wall Street Journal (WSJ), groups affiliated with HAMAS have garnered millions in cryptocurrency donations. Both U.S. and Israeli authorities are attempting to obstruct these groups' access to such funding.

Israel Police Freezes HAMAS's Crypto Wallets:

Israeli law enforcement agencies have frozen several cryptocurrency accounts linked to HAMAS. Binance reportedly assisted in tracking down these accounts. Recall, in June 2023, Israel seized millions in cryptocurrency from another group, Hezbollah.

Crypto Companies Rally to Assist Israeli Citizens:

The Blockchain Association of Israel, along with several partners, has initiated the Crypto Aid Israel fund. This fund aims to help the residents of the areas in Israel that have been adversely affected.

Experts Predict a Decline in Bitcoin Value Amid Israel-HAMAS Conflict:

On October 10, 2023, Bitcoin tested the $27,380 mark, but by October 11, its value had dipped to $26,540. Given the deteriorating geopolitical situation in the Middle East, analysts predict an even sharper decline in Bitcoin's value.

3. Bitcoin News:

SEC Won't Challenge Grayscale's Bitcoin-ETF Court Decision:

The U.S. Securities and Exchange Commission (SEC) has reportedly decided not to challenge the court's decision regarding Grayscale's spot Bitcoin-ETF. This information came to light via a Reuters report, citing sources familiar with the matter.