Ex-FTX CEO Convicted: Biden Sets AI Safety Rules; Swiss Begin Wholesale CBDC Pilot
Summary:
Sam Bankman-Fried, former FTX CEO, was found guilty on seven felony counts in New York, including several fraud charges related to cryptocurrencies. Post-verdict, FTX's pricing claims soared to an unprecedented 57%. In other news, U.S. President Biden has issued new standards for AI safety and security. Further clarifications have been provided to the UK's promotion of crypto assets rules. Lastly, the Swiss National Bank along with six commercial banks and the SIX Swiss Exchange will initiate the pilot of "Swiss franc wCBDC", exploring its effectiveness in settling digital securities transactions. The pilot will run from December 2023 to June 2024.
In a recent New York court ruling, Sam "SBF" Bankman-Fried, ex-CEO of FTX, was declared guilty of all seven charges lodged against him on November 3, which includes a couple of counts each for wire fraud and wire fraud conspiracy, as well as single counts for securities fraud, commodities fraud conspiracy, and money laundering conspiracy. His fate regarding punishment, possibly ranging from five to twenty years of incarceration, will be determined by Judge Lewis Kaplan on March 28, 2024. As per the response of U.S. Attorney Damian Williams, this represents one of history's most significant financial frauds, indicating a multi-billion dollar strategy to ascend Bankman-Fried to the apex of the crypto world. Post-verdict, FTX's current pricing claims soared to an unprecedented 57%, partly owed to AI firms that the now-bankrupt entity had previously backed financially. Other bankrupt crypto entities such as Celsius, Genesis, Alameda Research and Three Arrows Capital fall significantly short in comparison. FTX furthermore petitioned the Delaware bankruptcy court for permission to liquidate trust fund assets amounting to roughly $744 million, comprising contributions from Grayscale Investments and Bitwise. This follows a previous court approval for the liquidation of nearly $3.4 billion worth of cryptocurrency assets. Meanwhile, U.S. President Joe Biden has executed an order establishing new parameters for AI safety and security built on previous initiatives, with a commitment from 15 industry giants. Special emphasis is given on sharing of safety testing outcomes and “crucial information” about advanced AI systems along with developing standardized tools to ensure the safety, security and trustworthiness of AI technology. The administration is also looking to prevent the misuse of AI for creating “hazardous biological materials” by setting new biological synthesis screening standards. In other updates, the UK Financial Conduct Authority (FCA) has provided further clarification to crypto firms about the new rules for the promotion of crypto assets introduced on October 8. Meanwhile, an endeavor led by the Swiss National Bank (SNB) in collaboration with six commercial banks and the SIX Swiss Exchange is set to initiate the issuance of a wholesale CBDC for Switzerland, aptly named the Swiss franc wCBDC. The project plans to use wholesale CBDC to determine its effectiveness in handling digital securities transactions. This pilot program, titled Helvetia Phase III, will make use of the infrastructure of Swiss Interbank Clearing and be hosted on SDX, and is scheduled from December 2023 to June 2024.
Published At
11/6/2023 7:30:00 PM
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