FTX Sale Considered, JPMorgan Debuts Blockchain Tokenization, Binance Faces Indictment
Summary:
Former FTX CEO Sam Bankman-Fried contemplated selling FTX equity to Saudi Crown Prince Mohammed bin Salman. JPMorgan introduced a blockchain-based tokenization application, the Tokenized Collateral Network (TCN), which allows for the fast and secure transfer of collateral ownership. Separately, Brazilian law enforcement are considering the indictment of Binance's CEO, Changpeng “CZ” Zhao, and three other domestic executives following allegations of financial pyramid schemes and illegal practices.
Former CEO of FTX, Sam Bankman-Fried, contemplated selling a portion of FTX, a leading cryptocurrency exchange, to Saudi Arabia's Crown Prince, Mohammed bin Salman, revealed Caroline Ellison in court. Meanwhile, JPMorgan, a financial assembly of the United States, proudly introduced its proprietary blockchain-enabled tokenization application named the Tokenized Collateral Network (TCN). Finally, in Brazil, the coalition government is eager to put Changpeng “CZ” Zhao, the chief at Binance, and several other exchange administrators on trial for alleged indictment.
Caroline Ellison, the ex-chief of Alameda Research provided her courtroom testimony on the sixth day of Bankman-Fried's ongoing fraud trial stating that both she and Bankman-Fried discussed tactics to safely secure their investments back in 2022. Ellison said their online journal titled “Things Sam is Freaking Out About” often talked about the possible investment from Saudi Arabia's Crown Prince.
Revealed on October 11, JPMorgan's tokenization platform, TCN, allows investors to use their assets as security guarantee. This blockchain technology-empowered application enables investors to transfer their ownership rights of collateral without any necessary transaction in the underlying registers. In its first publicized collateralized partnership with BlackRock, TCN allowed the transformation of one money market fund's shares into digital tokens. These tokens were further transferred to the Barclays bank as a security guarantee for an over-the-counter derivatives exchange between BlackRock and JPMorgan.
Tyrone Lobban, the chief at Onyx Digital Assets, hailed the inception of TCN as it unlocks capital potential for it to be capitalized on in future transactions, simultaneously amplifying the efficiency levels.
On the other hand, a Brazilian parliamentary panel has instructed law enforcement authorities to indict Zhao and three other Binance executives on charges of operating pyramid schemes. The committee posits that Zhao controlled an intentionally elusive and fraudulent network of legal entities, primarily aimed at noncompliance with the existing laws.
The committee has further suggested that the Securities and Exchange Commission investigate the alleged financial irregularities of the company, including tax evasion, money laundering, funding of organized terrorism and unauthorized derivatives product sales. However, these recommendations are non-binding legal advisories, and the final decision rests with the competent authorities.
In a statement, Binance expressed its commitment towards cooperation with Brazilian law enforcement agencies but denied all allegations and termed them as baseless. Besides, the committee also recommended the indictment of 45 other individuals associated with various cryptocurrency firms, alleging their participation in illegitimate activities. This article does not advise for or against investment or trading actions. All forms of investment and trading involve risk, and readers should conduct individual research before making a decision.
Published At
10/11/2023 8:57:03 PM
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