Bankman-Fried Defends Actions in Court; SEC Chair Reveals $5B Crypto Actions; Elliptic Debunks Hamas Crypto Claims
Summary:
Sam Bankman-Fried, the former CEO of FTX, has defended his actions at his ongoing criminal trial, stating he believed his interactions with Alameda were legal. Meanwhile, SEC Chair Gary Gensler outlined the regulator's enforcement actions, worth $5 billion, against the crypto sector at the Securities Enforcement Forum. Lastly, blockchain forensics firm Elliptic disputed claims about significant cryptocurrency donations to Hamas.
On October 26, Sam Bankman-Fried, the former CEO of FTX, made an appearance in court for his criminal trial in New York. In the midst of this, the SEC's Chairman Gary Gensler gave insights into the regulatory body's operations against the crypto market, and Elliptic, a blockchain forensics firm, clarified the scale of cryptocurrency contributions to Hamas. Reports from Bankman-Fried's current trial suggest he was under the impression his interactions with Alameda Research were legal.
Despite facing seven criminal charges, to which he has pleaded not guilty, Bankman-Fried maintained his belief that it was lawful to take FTX deposits via Alameda Research during his time as CEO of both entities. Under examination on October 26, he stated "I did," to defense attorney Mark Cohen's question regarding whether he believed his actions were legal. His fate now lies in the hands of a jury deliberation set to happen early next week, and he is expected to confront additional charges in a subsequent trial set for March, 2024.
At the 2023 Securities Enforcement Forum, Gary Gensler of SEC shared that regulatory enforcement actions resulted in judgments and orders totaling to $5 billion. His frank remarks on the cryptocurrency sector garnered attention, particularly when he stated the field is “highly noncompliant.” Among the SEC's 780 enforcement actions for 2023 were over 500 standalone cases, yielding around $930 million in reimbursements to affected investors.
Gensler pointed out that the SEC took legal actions against 40 companies for regulation breaches since December 2021, resulting in over $1.5 billion in penalties. He also stated that 23 companies faced recordkeeping-related charges settled by the SEC in the last fiscal year. Gensler insists that the majority of the cryptocurrency market falls under securities law, thereby requiring the same level of regulation.
Contrary to recent media claims, Elliptic—a blockchain forensic firm—dismissed the notion that Hamas has collected substantial amounts of cryptocurrency donations, indicating that no solid evidence has been found. In a statement dated October 25, Elliptic contested widespread assumptions, backed by misinterpreted data, that cryptocurrency is massively used for supporting Hamas' activities, citing a mere $21,000 collected by a fundraising initiative run by pro-Hamas news outlet, Gaza Now.
Published At
10/26/2023 7:49:03 PM
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