Ex-FTX Boss Sam Bankman-Fried Gets 25 Years Behind Bars

Sam Bankman-Fried, the former CEO of FTX, has been sentenced to 25 years in prison for his role in the cryptocurrency exchange's collapse. The sentencing comes after Bankman-Fried was found guilty of seven criminal charges, including wire fraud and money laundering. In other news, Fidelity has filed an S-1 application with the SEC for a spot Ether exchange-traded fund (ETF) with staking, while a United States court has denied Coinbase's motion to dismiss the SEC's case against the exchange.

Sam Bankman-Fried Sentenced to 25 Years in Prison

In a momentous development for the cryptocurrency industry, former FTX CEO Sam "SBF" Bankman-Fried has been sentenced to 25 years in prison. The sentencing follows a guilty plea to seven felony charges, including wire fraud and conspiracy to commit money laundering. Federal Judge Lewis Kaplan of the Southern District of New York handed down the sentence, citing Bankman-Fried's role in orchestrating a massive fraud that resulted in billions of dollars in losses for investors. The sentence marks a significant milestone in the ongoing legal proceedings surrounding the collapse of FTX and its affiliated trading platform, Alameda Research.

Constancy Files for Spot Ether ETF with Staking

Constancy Investments, a financial services giant, has filed an S-1 application with the U.S. Securities and Exchange Commission (SEC) to launch a spot Ether exchange-traded fund (ETF). The proposed ETF would allow investors to gain exposure to Ether (ETH), the second-largest cryptocurrency by market capitalization, without having to purchase and hold the asset directly. Notably, the ETF will also provide the option for investors to stake a portion of their ETH holdings, offering the potential for passive income. The filing represents a significant step towards mainstream adoption of cryptocurrency assets.

SEC Lawsuit Against Coinbase Moves Forward

In a major legal setback for Coinbase, a United States court has denied the company's motion to dismiss the SEC's lawsuit against the cryptocurrency exchange. The lawsuit alleges that Coinbase violated federal securities laws by listing 13 tokens that the SEC claims are securities. Coinbase had argued that the SEC lacked authority over cryptocurrency exchanges and that the tokens in question were not securities. The court's decision allows the SEC to pursue its case against Coinbase, a potentially significant development in the regulatory landscape for cryptocurrency exchanges.

SEC Seeks $2B in Fines and Penalties from Ripple

The U.S. SEC has reportedly requested a $2 billion fine and penalty from Ripple Labs, the company behind the XRP cryptocurrency. According to Ripple's chief legal officer, Stuart Alderoty, the SEC has filed a motion with a federal judge seeking the hefty fine. Alderoty has accused the SEC of engaging in "false, mischaracterized, and misleading statements" in its pursuit of the case. The SEC's actions highlight the ongoing legal uncertainty surrounding the regulation of cryptocurrencies and their classification as securities.

Canadian Authorities Seize Assets Linked to QuadrigaCX

In a move to recover funds from the defunct QuadrigaCX cryptocurrency exchange, Canadian authorities have obtained an unexplained wealth order. The order empowers them to seize assets, including cash, gold bars, and luxury items, linked to a co-founder of QuadrigaCX. The alleged proceeds of criminal activities were discovered in a safe deposit box. The move signifies efforts to unravel the mysteries surrounding QuadrigaCX's collapse and compensate investors who lost funds in the exchange's demise.

Market Movements: Bitcoin Crosses $69,000

At the end of the week, Bitcoin (BTC) was trading at $69,437, Ether (ETH) at $3,482, and XRP at $0.62. The total cryptocurrency market capitalization stood at $2.62 trillion. Core (CORE), Dogwifhat (WIF), and Bitcoin Cash (BCH) emerged as the top three altcoin gainers, while KuCoin Token (KCS), Fantom (FTM), and Bittensor (TAO) were the top three altcoin losers.

Memorable Quotations:

"When not lying, [Sam Bankman-Fried] was evasive, hair splitting, making an attempt to get the prosecutors to rephrase questions for him. I've been doing this job for shut for 30 years. I've by no means seen a performance like that."

• Lewis Kaplan, senior judge of the U.S. District Court for the Southern District of New York

"Yes, over time, we continue to see greater adoption of nonprofits accepting cryptocurrency donations. The market has become too big to ignore."

• Alex Wilson, co-founder of The Giving Block

"I'm very bullish on the long-term viability of Bitcoin."

• Larry Fink, CEO of BlackRock

"Demand for Bitcoin is fast outstripping the new supply, and that is something we've never really had in earlier cycles."

• Simon Peters, market analyst at eToro

"Ripple is well-positioned to pay a major civil penalty."

• The U.S. Securities and Exchange Commission

"The [spot Ether ETF] case is just as strong as it was for spot #Bitcoin ETFs."

• Craig Salm, chief legal officer at Grayscale

Prediction of the Week: Bitcoin Poised for 'Huge' Short Squeeze

As Bitcoin hovers around the $70,000 mark, analysts predict a potential "huge" short squeeze. They posit that diminishing downtrends and accelerating uptrends are squeezing short-sellers, potentially driving Bitcoin's price to $80,000. Data shows that if Bitcoin reaches $75,000, a substantial $3.85 billion in short positions could be liquidated.

FUD of the Week: US Charges KuCoin with AML Violations

In a serious blow to the cryptocurrency industry, the U.S. Department of Justice (DOJ) has unsealed indictments against KuCoin and two of its founders. The charges allege conspiracy to operate an unlicensed money transmitting business and violations of the Bank Secrecy Act. The DOJ claims that KuCoin handled over $5 billion in "suspicious and criminal funds." The move raises concerns about the potential for increased regulatory scrutiny and enforcement actions against cryptocurrency exchanges.

Munchables Hacker Returns Stolen Ether

In a surprising turn of events, the hacker who stole over 17,400 ETH from the Ethereum-based game Munchables has returned the stolen funds without demanding a ransom. The hack was initially attributed to a North Korean developer hired by the Munchables team. The hacker's decision to return the stolen assets has garnered praise and speculation about their motives.

US Lawmakers Demand SEC Clarity on Ether Custody

US lawmakers have urged SEC Chair Gary Gensler to clarify the agency's position on crypto agency Prometheum's plans to offer institutional custody services for Ether. The lawmakers argue that Prometheum's announcement conflicts with the Commodity Futures Trading Commission's (CFTC) classification of ETH as a non-security digital asset. The request highlights the ongoing debate surrounding the regulatory treatment of Ether and other cryptocurrencies.