SEC Subpoenas PayPal, SafeMoon Executives Arrested, Amidst Bankman-Fried Fraud Trial
Summary:
The criminal trial of Sam Bankman-Fried is approaching a climax, while PayPal reveals an SEC subpoena regarding its Dollar-linked stablecoin. Despite recent JPEX scandal, Hong Kong's Web3 plans will persist and SafeMoon's executives face arrest on multiple fraud charges. Meanwhile, Paxos's PYUSD stablecoin has a successful rollout with a $159 million market cap.
The criminal trial of Sam Bankman-Fried is reaching a climax, with the prosecution making its final response to the defense. In other news, PayPal reveals that it has been subpoenaed by the US Securities and Exchange Commission (SEC) in relation to its Dollar-linked stablecoin. Furthermore, despite the recent scandal involving JPEX, an official assures that Hong Kong's Web3 plans will not be affected. Lastly, several executives from SafeMoon have been apprehended and accused of multiple fraud charges.
In a court session on Nov 2, Assistant US Attorney Danielle Sassoon argued that the prosecutors had sufficiently demonstrated Bankman-Fried's guilt on charges of fraudulent activity and conspiracy to scam. They assert that Bankman-Fried, the ex-CEO of FTX, deliberately deceived clients about their fund's safety and FTX's association with Alameda Research and alleged that rejecting the hiring of a risk officer was because he was fully aware his actions were unethical. A twelve-member jury is set to decide his fate.
PayPal is up against SEC regulations concerning its PYUSD digital coin, the company confirmed in its Q3 financial report submitted to the SEC on Nov. 2. The SEC's Enforcement division subpoena, which requested specific documents from PayPal, arrived on Nov. 1. PayPal is cooperating with the SEC's request.
The PYUSD stablecoin, released by PayPal roughly three months ago, is issued by Paxos Trust and sustained by deposits in US dollars, short-term government-issued bond securities, and other similar cash equivalents. It utilizes the Ethereum blockchain for the purposes of digital transactions and Web3.
A representative of Paxos confirmed that the PYUSD rollout has been successful, with its market cap rapidly expanding to reach $150 million dollars within the first two months since its launch. Current CoinGecko figures indicate that the stablecoin's market cap is around $159 million, with a daily trading volume of nearly $2.7 million.
Despite the controversial $165 million fraud allegations against crypto exchange JPEX, a government official reassured that Hong Kong's Web3 plans remain resolute. Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, reaffirmed this during a keynote speech at Hong Kong Fintech Week on Nov. 2.
Approximately 2,500 Hong Kong citizens believe they were deceived by JPEX, leading the Securities and Futures Commission (SFC) to caution against the adoption of its unauthorized local services. Despite these events, Hui confirms Hong Kong's intensified regulatory approach towards cryptocurrencies, along with potential future adjustments.
Finally, three SafeMoon executives face charges of fraud and the selling of unregistered securities, linked with its SafeMoon token. Based on the publicly disclosed documents, Kyle Nagy the creator, CEO John Karony, and chief technology officer Thomas Smith are accused of improperly withdrawing $200 million from the project and misallocating investor resources. Both Karony and Smith have been apprehended, while Nagy is currently on the run.
Published At
11/2/2023 5:59:05 PM
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