FTX Cheif Execs Plead Guilty To Fraud | Stablecoins Regulation Bill In Congress + more crypto news…

CRYPTO CORNER EPISODE 565

Market Analysis, Updates, News & Reviews

In today’s episode I discuss the latest crypto news:
► Caroline Ellison and Gary Wang of FTX and Alameda Plead Guilty to Fraud.

►Ethereum Creator Vitalik Buterin Talks about his Reasons Why the World Needs Crypto Money

►A pro-crypto Republican US Senator has submitted a Stablecoin Trust Bill, which is the most adequate of all proposals so far.

Take a look:

The co-founder of the bankrupt crypto exchange, Gary Wang, and the former chief executive of Alameda Research, Caroline Ellison, plead guilty to federal criminal charges that they helped Sam Bankman-Fried orchestrate a scheme to defraud investors in FTX.
This was revealed by the US attorney for New York’s Southern District, Damian Williams.

Caroline Ellison faces seven charges including wire fraud and conspiracy to commit both commodities and securities fraud. These carry a maximum sentence of 110 years in prison, according to a plea agreement with prosecutors.

Gary Wang, who served as chief technology officer at both FTX and Alameda, pleaded guilty to four counts of conspiracy to commit wire fraud and securities fraud. He faces up to 50 years in prison, according to the Washington Post.
They have both reportedly been released on a $250,000 bond.

According to the SEC, Between 2019 and 2022, Ellison was directed by Sam Bankman-Fried to manipulate the price of the FTT token by making large purchases to boost its price – in other words, wash trading, which is highly illegal in the US.
This price manipulation caused Alameda’s FTT holdings to be inflated, in turn leading to misrepresentations of the firm’s balance sheet.
Wang was separately accused of creating a previously reported backdoor in FTX’s software that enabled Alameda to divert the exchange’s customer funds. Ellison allegedly used these misappropriated funds for Alameda’s trading activity.

As of right now, we don’t yet have news about Sam Fried, whether he will plea guilty, I’m sure this will come up in the next few days or so. He is currently in FBI custody, with reports indicating he was extradited to the US yesterday.

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Pat Toomey is the person behind a new bill proposal, for regulating stablecoins in the US and if passed by Congress, it would permit non-state and non-bank institutions to issue stablecoins, as long as they obtain a federal license created and issued by the OCC, and as long as the stablecoins are backed up by “high-quality liquid assets.”

The bill would exempt stablecoin issuers from U.S. securities laws, as long as they don’t offer interest-bearing products or services, so this can be a real game changer. This will stop stablecoin issuers from being considered as investment advisers or companies, and will allow non-bank entities to issue them.

This bill would only apply to “payment” stablecoins that can be directly converted to fiat by the issuer — such as the U.S. dollar — not commodity-like or algorithmically-backed stablecoins, which are still very much clouded by uncertainty.

Stablecoins are in fact a big chunk of the market, as we all know too well. I’ve been keeping my capital in stablecoins since the beginning of this bear market and Stablecoin adoption has grown immensely this year.

According to CoinMetrics, the total value settled by them in 2021 was just over $6 trillion. This year, the value settled will come to aboout $8 trillion, if not more. We still don’t have the figures, but it is important to note that stablecoin settlements have already surpassed MasterCard and American Express and are expected to surpass those of Visa next year.
Actually, next year’s stablecoin volumes will most likely surpass the aggregate volume of all four major credit card networks.

However, there is a difference between credit card volumes and stablecoin settlements. Credit card transactions usually indicate consumer spending, whereas fiat-pegged crypto assets are primarily used for crypto trading and decentralized finance.

With that in mind, the surge in settlement volumes for stablecoins is even more impressive. Once they are regulated and can be used for payments, that volume will skyrocket.

Stablecoins currently account for around 16.5% of the entire crypto market capitalization.

According to CoinGecko, there is $140 billion in all of them combined.

Tether remains the king of the crop, with a 47% market share and 66.3 billion USDT circulating.

Circle is second with a market share of 31% and 44.3 billion in UDSC.

Combined, the pair make up almost 80% of the entire stablecoin market.

In a statement yesterday, the senator called stablecoins an “exciting technological development that could transform money and payments,” adding:

“By digitizing the U.S. dollar and making it available on a global, instant, and nearly cost-free basis, stablecoins could be widely used across the physical economy in a variety of ways.”

Vitalik Buterin gave his 4 top reasons why cryptocurrencies are needed, to find out what these are, just watch the video till the end.

Thank you!

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The information contained in this article is for informational purposes only. Nothing herein shall be construed to be financial or legal advice. The content of this video reflect solely my own opinions. Purchasing cryptocurrencies poses considerable risk of losses.

All information is meant for public awareness and contains what is already in the public domain. Please take this information and do your own research.

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