Crypto Movements, Legal Developments Shake Digital Finance World
Summary:
The article reports on financial developments including movements by the FTX hacker who has moved $38 million worth of Ether; the narrowly-avoided U.S. government shutdown which could have significantly impacted market oversight; pending charges by the U.S. Commodity Futures Trading Commission against those involved in a fraudulent cryptocurrency platform named Cryptobravos; and the arrest of Su Zhu, co-founder of Three Arrows Capital, which resulted in a nearly 50% dip in the value of the Open Exchange token. The former FTX clients, investors, and staff may be summoned as witnesses in an upcoming fraud trial against ex-FTX CEO, Sam Bankman-Fried.
The suspect behind the monumental crypto theft from the now defunct FTX exchange has reportedly been active over recent days, relocating around 22,500 Ether ($38 million). Last seen relocating funds 10 months ago, this individual moved nearly $8.6 million to a new account in two transactions on September 30. Only a day later, roughly $17 million was split across five accounts. Additionally, these funds had a notable journey through the THORChain router and Railgun contract.
As of October 1, the suspected hacker has made another move with 7,500 ETH (around $12.6 million), raising the sum of moved Ether to $38 million. Blockchain analytics agency Lookonchain has reported that the suspect currently holds 163,000 ETH, valued at approximately $275 million.
This person managed to pull $477 million worth of assets out of several FTX US and global exchange accounts just hours after the crypto exchange filed for bankruptcy on November 11. This has positioned the suspect as the 27th largest Ether whale.
Aside from damages from cybercrime, ex-FTX CEO Sam Bankman-Fried faces impending trial on October 3 for fraud. Added to this, the US could potentially see its first Ethereum futures ETFs launched.
After narrowly avoiding a dreaded government shutdown on October 1 by agreeing on a short-term funding deal, US President Joe Biden signed a 45-day bill right before the deadline. This speedy deal will ideally allow the Senate and House of Representatives more time to set the final funding legislation.
Government institutions such as the United States Securities and Exchange Commission emphasized that a government shutdown would have necessitated temporary layoff of over 90% of its staff, which would significantly impair market oversight.
Four individuals and a business are currently facing charges from the US Commodity Futures Trading Commission (CFTC) concerning their potential involvement in a fraudulent cryptocurrency platform, Cryptobravos. Operating from January 2017 to October 2021, this platform promised its customers risk-free returns, but this wasn't the case.
Su Zhu, co-founder of Three Arrows Capital and creator of the Open Exchange token (OX), has been arrested on allegations of fleeing Singapore. Following his arrest, OX has experienced a nearly 50% dip in value. Open Exchange launched in April 2023 as a means to aid investors who had financial losses from recent failed crypto projects.
Amongst these events, the US Department of Justice has stated its plan to summon former clients, investors, and staff members of FTX as witnesses for the looming trial involving ex-FTX CEO, Sam Bankman-Fried. Moreover, Vitalik Buterin, Ethereum co-founder, has voiced worries over decentralized autonomous organizations possibly exploiting their power when selecting node operators in staking pools with liquidity. Buterin implies that such conduct could jeopardize crypto funds by providing opportunities for harmful actors.
Published At
10/2/2023 5:30:50 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.