Warren Urges White House to Scrutinize Crypto in Terrorism; Reddit Ends Blockchain Rewards System
Summary:
Senator Elizabeth Warren, along with 100 lawmakers, has urged the White House to investigate the role of cryptocurrencies in terrorism financing. Concurrently, Reddit plans to end its blockchain-based rewards program, "Community Points," due to scalability issues. Also, ex-FTX engineering lead Nishad Singh was cross-examined by the defense team of Sam Bankman-Fried, related to a software bug at a sister company.
In a recent crusade against cryptocurrency, Senator Elizabeth Warren and more than 100 lawmakers voiced their concern to the White House about the potential use of digital currencies in financing acts of terrorism. Correspondingly, Reddit, a popular social platform, prepares to discontinue its blockchain-reward system named "Community Points," citing scalability problems. In other news, Nishad Singh, ex-FTX engineering lead, was cross-questioned by the defense team of Sam Bankman-Fried.
Collectively, Elizabeth Warren and several other lawmakers penned a letter, dated October 17, urging the White House to take into account the possible use of cryptocurrencies in funneling funds to terrorist groups. Digital currencies were found to have been used by Palestinian militant groups to collect donations exceeding $130 million between 2021 and 2023. It's under these troubling circumstances that the legislators urged action be taken to significantly reduce illicit uses of cryptocurrencies.
The upcoming termination of Reddit's "Community Points," a blockchain-supported rewards system, was announced on October 17. Claiming scalability issues, Reddit indicated their inability to implement this mechanism on a larger scale across their platform. The closure of this system, set to happen on November 8, was greeted with disappointment and resentment from the Reddit community and crypto enthusiasts alike.
On the legal front, FTX's past engineering lead, Nishad Singh spent October 17 under cross-examination by defense attorneys representing Sam Bankman-Fried. Defense attorney, Mark Cohen obtained admission from Singh that he was unaware of a particular software error which inflated the liabilities of the affiliated hedge fund organization, Alameda Research. This discrepancy came to his notice after overhearing a conversation amongst former FTX executives. Singh had previously revealed experiencing suicidal thoughts during FTX's downfall in November 2022.
Bankman-Fried's trial continues into its 10th day with prosecutors expected to engage additional witnesses until October 26 or 27. Following which, the defense team will present its case. This news update includes no investment advice or recommendations. Any investment or trading decisions pose a risk and individuals are advised to conduct adequate research before coming to a decision.
Published At
10/18/2023 7:21:43 PM
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