Former FTX CTO Testifies at Bankman-Fried's Trial; ESMA Releases Second MiCA Consultation; EMAX Investors Get Final Amendment Chance
Summary:
Gary Wang, former CTO at FTX, testified about special privileges offered by Sam Bankman-Fried to Alameda's FTX account during his trial. Meanwhile, the European Securities and Markets Authority released a second consultative paper on MiCA, aiming to submit a final report by June 2024. Additionally, a judge offered EthereumMax (EMAX) investors their last opportunity to amend their class-action lawsuit against celebrities accused of endorsing the discarded cryptocurrency.
Gary Wang, the previous Chief Technical Officer at FTX, gave his testimony during Sam Bankman-Fried's legal proceeding on October 6. In other developments, the regulatory authority overseeing European markets has launched another consultation on markets concerning crypto-assets (MiCA), intending to present its finalized report to the European Commission by June 2024. In addition, a judge has given investors of EthereumMax (EMAX) pursuing a lawsuit against celebrities for apparent endorsements, their last chance to modify their class-action complaint.
FTX's accounts held by Alameda were privileged with unique benefits, Wang asserted during Sam Bankman-Fried’s trial on the 6th of October, as he faced questions pertaining to the supposed links between FTX and Alameda Research. Per reports, Alameda’s FTX account was the only one allowed to conduct transactions exceeding their available balance. This 'allow negative' function purportedly empowered Alameda to persist in their trading activities despite insufficient funds. “I expressed that we won’t use these types of funds,” Wang appeared to remark. Following Wong's revelation that billions were missing from the Alameda balances, Bankman-Fried requested a meeting in their Bahamas office. He then gave permission for Alameda to repay any borrowed funds.
Wang further stated that Bankman-Fried granted Alameda exclusive privileges on FTX, linked to the platform's native FTX Token (FTT).
Bankman-Fried’s trial kicked off earlier in the week, with the former CEO of FTX facing multiple criminal accusations.
The European Securities and Markets Authority (ESMA), acting regulator to the EU’s markets, unveiled a secondary consultation document, concerning MiCA obligations on Oct. 5. The initial paper was published earlier in July. This extensive 307-page report requests feedback on five MiCA sectors, including sustainability indicators for ledgers, the disclosure of insider information, requirements for technical white papers, measures for trade transparency, and record maintenance for crypto asset service providers (CASPs).
In regard to post-trade transparency, the ESMA is proposing CASPs to report on trading and transaction timing, crypto-asset identification, pricing details, quantity, execution venue and transaction ID.
The ESMA intends to release a third consultation package in the start of 2024 preluding the final consultation report submission to the European Commission by the end of June 2024.
Presiding over the EthereumMax (EMAX) investor class action, a judge gave plaintiffs one final opportunity to amend their lawsuit against celebrities accused of endorsing the now extinct cryptocurrency. As a result of persistent omissions recognized by the court, the participants were cautioned that this serves as their ultimate chance to rectify allegations.
Accusations of a 'pump and dump' scheme were launched against boxing hero Floyd Mayweather, NBA marvel Paul Pierce, reality star Kim Kardashian and other personalities, for their promotion of EMAX, which were dismissed last year, but resurfaced in June when a judge denied to dismiss the 'unfair competition' charges the plaintiffs held against the celebrities.
Published At
10/6/2023 6:44:27 PM
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