Caroline Ellison speaks on FTX-Binance war, SEC won’t appeal Grayscale BTC ETF: Hodler’s Digest, Oct. 8-14

Top Stories This Week

Caroline Ellison wanted to measurement down but feared a slope tally connected FTX

Caroline Ellison, erstwhile CEO of Alameda Research, testified for implicit 10 hours this week astatine Sam Bankman-Fried’s trial, offering deeper details connected the events that anticipated the FTX debacle successful November 2022. From Ellison’s testimony, jurors learned that she planned to permission Alameda months earlier its collapse, but feared a slope tally connected FTX amidst the crypto marketplace downturn. The week besides featured a signaling presented arsenic evidence successful the lawsuit showing the nonstop infinitesimal Ellison told employees astir Alameda’s usage of FTX lawsuit deposits. Among the cardinal moments of Bankman-Fried’s proceedings were revelations of fabricated equilibrium sheets successful bid to deceive crypto lenders, arsenic good arsenic BlockFi CEO Zac Prince’s testimony. Check retired this week’s highlights from Cointelegraph’s squad connected the ground.

Months earlier the illness of crypto speech FTX, erstwhile CEO Sam Bankman-Fried was “freaking out” astir buying shares successful Snapchat, raising superior from Saudi royalty and getting regulators to ace down connected rival crypto speech Binance, according to grounds presented successful court this week arsenic a portion of the ongoing transgression trial. Bankman-Fried believed Binance leaked an Alameda equilibrium sheet to the media successful 2022. According to a papers from Nov. 6, 2022, Bankman-Fried wrote that Binance had been “engaging successful a PR run against us.” It continued, saying that Binance “leaked a equilibrium sheet; blogged astir it; fed it to Coindesk; past announced precise publically that they were selling $500m of FTT successful effect to it portion telling customers to beryllium wary of FTX.”

SEC reportedly won’t entreaty tribunal determination connected Grayscale Bitcoin ETF

The United States Securities and Exchange Commission reportedly has nary plans to entreaty the caller tribunal decision that favored Grayscale Investments. The ruling requires the SEC to reappraisal the firm’s spot Bitcoin exchange-traded money (ETF) application. The SEC’s expected determination not to entreaty doesn’t needfully mean Grayscale’s exertion is acceptable to beryllium approved. If the reports are true, the SEC volition request to travel the court’s August bid and reappraisal Grayscale’s exertion to alteration its Grayscale Bitcoin Trust into a spot Bitcoin ETF.

Terraform Labs contends Citadel Securities had a manus successful its stablecoin collapse

Terraform Labs has again pointed the digit astatine marketplace shaper Citadel Securities for its relation successful an alleged “concerted, intentional effort” to origin the depeg of its TerraUSD stablecoin successful 2022. On Oct. 10, Terraform Labs filed a question successful the United States to compel Citadel Securities to nutrient documents relating to its trading enactment successful May 2022, erstwhile TerraUSD Classic depegged. In its motion, Terraform argued that the documents are important for its defence successful the suit filed by the U.S. Securities and Exchange Commission successful February, which alleged Terraform Labs and its founder, Do Kwon, had a manus successful “orchestrating a multi-billion dollar crypto plus securities fraud.” Citadel Securities has, however, antecedently denied trading the TerraUSD stablecoin successful May 2022.

Mastercard announces palmy wrapped CBDC proceedings results

Mastercard has completed a proceedings involving wrapping cardinal slope integer currencies (CBDCs) connected antithetic blockchains, akin to wrapped Bitcoin and wrapped Ether. The proceedings was conducted with the Reserve Bank of Australia and the country’s Digital Finance Cooperative Research Centre CBDC. Mastercard said the solution allowed a CBDC proprietor to acquisition a nonfungible token (NFT) listed connected Ethereum. “The process ‘locked’ the required magnitude of a aviator CBDC connected the RBA’s aviator CBDC level and minted an equivalent magnitude of wrapped aviator CBDC tokens connected Ethereum,” the outgo processor wrote.

Winners and Losers

At the extremity of the week, Bitcoin (BTC) is astatine $26,892, Ether (ETH) astatine $1,551 and XRP astatine $0.48. The full marketplace headdress is astatine $1.05 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the apical 3 altcoin gainers of the week are Loom Network (LOOM) at 86.71%, Trust Wallet Token (TWT) at 16.72% and Tether Gold (XAUt) at 5.16%. 

Most Memorable Quotations

“That’s our homework, actually. To truly amended radical astir the payment of utilizing blockchain.”

Grace Sabandar, co-founder of the Indonesia Blockchain and Metaverse Center

“Crypto-assets markets, including DeFi, bash not correspond meaningful risks to fiscal stableness astatine this point.”

European Securities and Markets Authority

“I was worrying astir lawsuit withdrawals from FTX, this getting out, radical to beryllium hurt. […] I didn’t consciousness good. If radical recovered retired [about Alameda utilizing FTX funds], they would each effort to retreat from FTX.”

Caroline Ellison, erstwhile CEO of Alameda Research

“It’s alarming and should beryllium a wakeup telephone for lawmakers and regulators that integer wallets connected to Hamas received millions of dollars successful cryptocurrencies.”

Elizabeth Warren, U.S. senator

“Bitcoin and Ethereum whitethorn look similar opposites, but they tin co-exist and complement each other.”

Willem Schroé, CEO of Botanix Labs

“People who judge SBFraud is simply a ‘good guy’ who made ‘mistakes’, and FTX grew excessively accelerated and it each got distant from him, should NEVER beryllium successful complaint of different people’s money.”

John Deaton, lawyer and crypto advocate

Prediction of the Week 

Ethereum losing streak vs. Bitcoin hits 15 months — Can ETH terms reverse course?

The terms of Ethereum’s autochthonal token, Ether, is trading astir a 15-month low versus Bitcoin, and the lowest since Ethereum switched to proof-of-stake. The ETH/BTC brace dropped to arsenic debased arsenic 0.056 BTC earlier this week. In doing so, the brace broke beneath its 200-week exponential moving mean (200-week EMA; the bluish wave) adjacent 0.058 BTC, raising downside risks further into 2023.

The 200-week EMA has historically served arsenic a reliable enactment level for ETH/BTC bulls.

ETH/BTC stares astatine akin selloff risks successful 2023 aft losing its 200-week EMA arsenic support. In this case, the adjacent downside people looks to beryllium astir its 0.5 Fibonacci enactment adjacent 0.051 BTC successful 2023, down astir 9.5% from existent terms levels.

Conversely, ETH terms whitethorn rebound toward its 50-week EMA (the reddish wave) adjacent 0.065 BTC if it reclaims the 200-week EMA arsenic support.

FUD of the Week 

Mistake oregon wealth laundering? User pays $1.6 cardinal for CrypToadz NFT

One of the CrypToadz NFTs, whose mean terms doesn’t transcend $1,000, was bought for an astonishing 1,055 wrapped Ether, an equivalent of $1.6 million. The CrypToadz postulation was launched during the NFT roar of 2021 and surpassed a trading measurement of $38 cardinal worthy of Ether during its archetypal 10 days connected the market. The terms paid by the anonymous idiosyncratic for the NFT raised questions among the community. Two weeks ago, this point was acquired for 0.95 ETH (around $1,600), lone to beryllium sold for a terms a 1000 times higher.

USDR stablecoin depegs to $0.53, but squad vows to supply solutions

Real estate-backed stablecoin USDR mislaid its peg to the United States dollar aft a unreserved of redemptions caused a draining of liquid assets specified arsenic Dai from its treasury. USDR, backed by a substance of cryptocurrencies and existent property holdings, is issued by the Tangible protocol, a decentralized concern task that seeks to tokenize lodging and different real-world assets. During the crisis, a trader reportedly exchanged 131,350 USDR for 0 USD Coin, resulting successful a implicit nonaccomplishment connected investment.

HTX claws backmost $8M successful stolen funds, issues 250 ETH bounty to hacker

Huobi Global’s crypto speech HTX has confirmed the instrumentality of the funds stolen by a hacker successful precocious September and issued a 250 Ether bounty aft resolving the issue. One of HTX’s blistery wallets was drained of 5,000 ETH connected Sept. 25, worthy astir $8 cardinal astatine the time. Shortly aft the hack occurred, the steadfast contacted the hacker and claimed to cognize their identity. HTX yet offered to wage a 5% bounty worthy astir $400,000 and not to instrumentality immoderate ineligible enactment if they returned 95% of the funds earlier a deadline of Oct. 2.

Beyond crypto: Zero-knowledge proofs amusement imaginable from voting to finance

An emerging cryptographic technology whitethorn supply assistance with 2 gaping 21st-century needs: Privacy and truth.

Eleanor Terrett connected impersonators and a amended crypto industry

Fox Business shaper Eleanor Terrett’s pursuing exploded aft she began providing commentary connected the SEC v. Ripple lawsuit.

SBF’s alleged Chinese bribe, Binance clarifies relationship freeze: Asia Express

SBF allegedly bribes Chinese officials with $150 cardinal to unfreeze accounts, Binance justifies blocking Hamas users, meanwhile, Huobi hacker returns each $8M successful stolen assets.