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The biggest names in the crypto are often the most unpopular. Former Alameda Research CEO, Caroline Ellison, and SEC Chair, Gary Gensler, are not frequently said in the same breath but they do share one thing in common: both are detested by the crypto industry.
This week marked Ellison's sentencing. With FTX founder and ex-boyfriend, Sam Bankman-Fried (SBF), sentenced to 25 years in prison, Ellison's subsequent sentencing for her involvement in the collapse of the ill-fated exchange and the catastrophic loss of $8 billion of customer funds was equally as highly anticipated.
However, like SBF, who had a maximum of 120 years in prison, Ellison was handed a 24-month sentence, down from a maximum of 110 years. With jail time 55 times less than her maximum sentence, the industry was predictably unimpressed.
Over in the regulation pit, Gensler received a grilling from Republican congressman Tom Emmer, who said there has not been a "more historically destructive, or lawless, chairman of the SEC."
Specifically referring to the SEC's mishandling of the Debt Box case that resulted in the regulator paying $1.8 million in legal fees, Emmer questioned the Chair, "Does the fact that we're talking about this today even slightly embarrass you?"
Gensler replied with his tail between his legs, “Look, the matters in that case were not well-handled and we’ve said that to the court.”
But not all crypto enemies are always crypto enemies. This week also marks the release of former Binance CEO, Changpeng Zhao (CZ), from his four-month prison sentence.
Pleading guilty to charges of enabling money laundering at Binance CZ was handed a 36-month sentence and a lifetime ban from the world's biggest crypto exchange. Zhao was ordered to pay a $50 million fine while Binance was slapped with a $4.3 billion fine.
Although a villain in the eyes of the law, CZ has become quite the cult icon in the crypto industry, with many celebrating his release.
In a space plagued with hacks and scams, the industry is understandably adding names to its naughty list. But as CZ has proven, it doesn't even take a clean record to find yourself on the nice list. That said, surely we can find more inspiring figureheads than an aider of narcotics trafficking, terrorist financing, sanction evasion, sex trafficking, and ransomware extortion?
There might be excitement for Ellison finally facing jail time and for CZ's release, but the markets don't seem to share excitement about anything. Bitcoin is up a mere 2.9% over the week while Ethereum is up less than 2.6%.
Nonetheless, risk appetites have intensified from last week's 32, "Fear," to 61, "Greed."
The Fear & Greed Index uses 5-6 measurements to assess the current sentiment of the market and then rates that level of emotion on a scale of 1-100 – 1 is extreme fear and 100 is extreme greed.
But are you worried about inflation? PCE numbers got you in a flux? Fear not, as BRN has you covered as always.
"The inflation number, scheduled to be released today, will be closely watched as it will likely determine whether the rally continues or if we will see a reversal," BRN analyst Valentin Fournier states. "We anticipate a high level of volatility in the market, and a complete breakout may be challenging over the weekend."
The #inflation number, scheduled to be released today, will be closely watched as it will likely determine whether the rally continues or if we will see a reversal. Core PCE is expected to be 2.7%, 0.1% higher than the previous month's figure. (1/6)
— BRN (@thebrn_co) September 27, 2024
Top Stories (In No Particular Order)
Singapore Court Grants WazirX a Four-Month Moratorium
Indian cryptocurrency exchange WazirX has been granted a four-month moratorium almost three months after its $235 million hack.
A moratorium application is a legal request to temporarily halt legal actions or financial obligations, giving the company time to restructure or resolve financial issues.
Blockhead
a16z Backs Decentralized Biobank Platform AminoChain
Venture capital giant Andreessen Horowitz's (a16z) crypto arm has made its first foray into the burgeoning field of Decentralized Science (DeSci) with leading a $5 million seed round in AminoChain, the firm announced on Wednesday.
This investment, which also saw the participation of private investment fund Cercano, brings AminoChain's total funding to date to $7 million.
Blockhead
PayPal Enables US Businesses to Buy, Hold, Sell Crypto
PayPal has extended its digital payment offerings to include buying, holding, and selling crypto for US merchants.
Except for those in New York state, US businesses will be able to use the service directly from their PayPal Business Accounts.
Blockhead
Binance Launches Pre-Market Trading Service For 'Actual Tokens'
Binance has launched a new feature that allows tokens to be traded before their official spot market listing.
Dubbed "Binance Pre-Market,' the feature allows the pre-market trading of selected Binance Launch pool token subscriptions, offering greater utility to Launchpool participants.
Blockhead
Crypto At the Centre of Presidential Race as Kamala Harris Says US Should Be "Dominant in Blockchain"
Kamala Harris has spoken. Again. After biting her tongue on the topic of crypto since the announcement of her presidential run, Harris has finally revealed her crypto stance. Kind of.
During Harris's silence, Donald Trump established himself as a crypto aficionado and has used this industry to lure political donors.
Blockhead
Stablecoins: Major Players Shift Focus in Digital Finance
In a noteworthy trend within the digital asset ecosystem, financial giants Robinhood, Ethena Labs, and Revolut are making significant strides in the stablecoin space. Each company is exploring or launching its own stablecoin, reflecting a strategic pivot toward digital finance solutions that promise to enhance user experience and operational efficiency.
Blockhead
SEC Greenlights Trading Options For BlackRock's Bitcoin ETF
In another boost for cryptos apart from the Fed, the US Securities and Exchange Commission (SEC) has approved Nasdaq's application to list options on BlackRock's iShares Bitcoin Trust ETF, an essential step towards starting trading in derivatives linked to the ETF.
The contracts must still be authorised by Options Clearing and the Commodity Futures Trading Commission before trading commences.
Blockhead
Singapore-Based Terraform Labs Greenlit For Bankruptcy Wind-Down Following SEC Settlement
Do Kwon's Terraform Labs has received court approval to wind down its operations in a bankruptcy agreement.
On 19 September, a US Bankruptcy Judge Brendan Shannon approved Terraform’s bankruptcy plan, describing it as a “welcome alternative” to further litigation.
Blockhead
Polymarket Seeks $50M Fundraising, Explores Token Launch
Polymarket is looking for $50 million in fundraising amid potential plans to launch a token.
The blockchain-based predictions platform will issue token warrants to investors in the round, which gives them the option to purchase tokens if Polymarket eventually issues them.
Blockhead
Telegram to Share More Data With Governments Following CEO Arrest
Telegram has revealed that it plans to increase data sharing with governments. This decision starkly contrasts with Telegram's previous positioning as a privacy-focused platform that champions free speech.
CEO Pavel Durov stated that the messaging app will share users' IP addresses and phone numbers with authorities in response to legitimate legal requests where criminal conduct is being investigated.
Perion Lim
Celestia Foundation Announces $100M Raise
The Celestia Foundation, the team responsible for developing the Celestia blockchain network, announced today that it has raised $100 million.
The funding round is led by Bain Capital Crypto, with participation from Syncracy Capital, 1kx, Robot Ventures, Placeholder, and other notable investors. This round brings Celestia's total funding to $155 million.
Perion Lim
Riot Platforms Settles With Bitfarms Amid Takeover Battle
Riot Platforms and Bitfarms have agreed on a settlement after months of takeover controversy.
Earlier this year, Riot Platforms planned to buy all of Bitfarms' outstanding shares at $2.30 each, marking a 24% premium on the one-month weighted average per share. In total, the deal was valued at $950 million.
Blockhead
SEC Delays Decision on ETH ETF Options Trading
The US Securities and Exchange Commission (SEC) has postponed its decision to allow options trading on Ethereum ETFs.
In a filing on Tuesday, the regulator said it is extending the deadline for deciding on a proposed rule change by Nasdaq ISE to list and trade options on the BlackRock iShares Ethereum Trust (ETHA).
Blockhead
Hong Kong Monetary Authority Launches Phase 2 of e-HKD Pilot, Expanding Focus on Digital Money Innovations
The Hong Kong Monetary Authority (HKMA) has commenced Phase 2 of its e-HKD Pilot Program, now rebranded as Project e-HKD+, to explore innovative use cases for digital money, including e-HKD and tokenized deposits., the regulator announced this week in a statement.
The e-HKD pilot program, launched in 2022, seeks to explore the feasibility of a central bank digital currency (CBDC) in Hong Kong. In its initial phase, the program focused on foundational research and stakeholder engagement, assessing technological capabilities and identifying potential use cases for the digital currency.
Blockhead
Gary Gensler Labelled "Most Destructive" SEC Chair in Debt Box Case
US Securities and Exchange Commission (SEC) Chair Gary Gensler has faced intense criticism for his handling of the Debt Box case in a recent congressional hearing.
During a House Financial Services Committee hearing on Tuesday, Republican congressman Tom Emmer grilled Gensler for his stance on the crypto industry.
Blockhead
Caroline Ellison Sentenced, CZ to Be Released - Is There Actually Justice in Crypto?
Caroline Ellison, former Alameda Research CEO and ex-girlfriend of FTX founder Sam Bankman-Fried, has finally been sentenced for her role in the collapse of FTX. But is the sentence enough, especially with ex-Binance head Changpeng Zhao finishing his four-month stint behind bars later this week?
Ellison had faced a maximum sentence of 110 years but was only given two years in prison. Judge Lewis Kaplan believed that the 29-year-old was "genuinely remorseful" and that she was exploited by SBF.
Blockhead
XProtocol to Launch Ethereum Phone XForge, Undercutting Solana Seeker
The Web3 smartphone market is heating up as new kid on the block, XProtocol, introduces its Ethereum phone, XForge.
Dubbed the world's first DePIN phone, the Android-powered smartphone is optimized for gaming and has a focus on entertainment.
Blockhead
Visa Steps Up Crypto Game With Tokenized Asset Platform
Global payments giant Visa has unveiled its new Visa Tokenized Asset Platform (VTAP), which will allow banks to issue fiat-backed tokens of real-world assets like bonds or commodities on Ethereum, according to reports from Blockworks [article since taken down] and Coindesk on Wednesday.
Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) is among the first financial institutions to use the platform. It targets to rollout a live pilot in 2025, the report said.
Blockhead
Blockcast
In this TOKEN2049 special episode, we sat down with crypto veteran and industry legend, Charles Hoskinson.
Holding nothing back, Hoskinson reveals who he'd pitch to represent Cardano in a Solana v Cardano crypto fight night, and why, unlike Harris, Trump could lead Bitcoin to $250K.
Blockhead
Events
GeckoCon (Bangkok, 11 November 2024)
GeckoCon returns, and this year we're diving into the revolutionary world of Web3 Gaming! Discover how the fusion of blockchain and traditional gaming is creating a whole new entertainment layer.Don't miss out—visit CoinGecko now to secure your spot in our first ever Hybrid Conference set to take place in Bangkok, Thailand. Or from the comforts of your home!
Get your tickets now with Blockhead's 40% code: BHGC24
[Limited to 30 redemptions, expires 12 September 2024]
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