FTX Trial Advances, Ripple's IPO Buzz, FTX Payout Plans, and Binance Halts UK Onboarding
Summary:
The trial against Sam Bankman-Fried advances, as the defense cross-examines former FTX engineering director Nishad Singh. Ripple stirs speculation of an IPO with a job posting for a shareholder communications senior manager, agitating the XRP community. Customers of defunct crypto exchange FTX could receive over 90% of their assets by mid-2024 following a proposed settlement. Crypto exchange Binance ceases accepting new users in the UK following compliance issues.
The court proceedings in the case against Sam Bankman-Fried are ongoing, with the defense team examining Nishad Singh, the previous director of engineering at FTX. In another development, the crypto network, XRP, is buzzing over a job advertisement posted by Ripple, indicating the company might be planning an IPO. FTX clients are also advancing towards obtaining their refunds.
Nishad Singh, the ex-executive of FTX, stood up to a series of questions from Sam Bankman-Fried's legal counsel on October 17. Singh voiced gaps in his memory concerning his period at the now-defunct cryptocurrency exchange. In response to attorney Mark Cohen's queries, Singh stated ignorance about a fatal software glitch at the sister hedge fund company, Alameda Research. This came to light when he overheard ex-FTX executives discussing it. Singh also confessed to experiencing desperate thoughts during FTX’s collapse in November 2022.
The tenth day of Bankman-Fried's trial was observed on Tuesday, with the prosecution scheduling more witnesses probably until October 26 or 27. After this, the defense will present their argument.
On another note, Ripple, the fintech payments firm, published a job vacancy for a senior manager of shareholder communications on October 16. This stirred much excitement among crypto aficionados, who viewed it as a clear indication of Ripple's intent to go public. The role mandates constant engagement with shareholders, a typical task in public companies. This hire would be tasked with developing and managing interactions with existing and potential investors, shareholders, and financial analysts. They would also need to devise strategic plans for critical events like mergers, acquisitions, and similar high-impact occurrences.
Some Ripple executives have previously hinted at going public, which has led many XRP supporters to believe the job posting as a clear giveaway of an upcoming IPO.
By mid-2024, customers of the insolvent crypto exchange FTX and FTX US might expect a return of over 90% of their assets as per a proposed settlement with FTX creditors and debtors. This settlement came about after extensive discourse with the committee of unsecured creditors, a group of non-US customers, and class action plaintiffs regarding customer property conflicts.
A 'Shortfall Claim' feature in the plan states that FTX debtors predict nine-tenth of assets to be returned to customers of FTX.com and FTX US. The estimated value of the Shortfall Claim is about $8.9 billion for FTX.com and $166 million for FTX US. Subject to approval from the Bankruptcy Court, it is expected that these funds will be distributed by Q2 of 2024. The presenting of the plan in court for approval is projected to be on December 16.
With effect from October 16, Binance, the crypto exchange, will no longer be accepting new users in the UK. The halt was caused by a compliance order from the UK's Financial Conduct Authority (FCA) on its partner, Rebuildingsociety.com Ltd (REBS), prohibiting any promotional ad campaigns for Binance products and services. Binance is now seeking a new FCA authorized supporter, and there will be temporary restrictions on its platform until Binance integrates with a new FCA-approved supporter for its promotional campaigns. This news piece does not offer investment advice or suggestions. Each investing and trading decision could involve risks, and readers are encouraged to conduct their own studies when making choices.
Published At
10/17/2023 7:16:51 PM
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