A highlight from 677:FTXs $157M Suit, MiCAs EU Impact, and Senates Crypto Gridlock
Why do tacos get their own day of the week? Is it because Mondays are so rough we need a Tuesday filled with beefy tortillas shared with good friends? If so, why don't we have Wellington Wednesdays stroganoff Saturdays and, heck, beefball Mondays? Then Mondays would just be another reason to enjoy our favorite beef with our favorite people. Together we bring more. Beef. It's what's for dinner. Funded by beef farmers and ranchers. Good evening and welcome to the Crypto Overnighter. I'm Nick Ademus and I will be your host as we take a look at the latest cryptocurrency news and analysis. So sit back, relax, and let's get started. And remember, none of this is financial advice. And it's 10 pm pacific on Friday, September 22nd, 2023. Welcome back to the Crypto Overnighter, where we have no sponsors, no hidden agendas, and no BS. But we do have the news, so let's talk about that. Tonight we're diving into the labyrinth of legal battles, regulatory walls, and the global maneuvers that are reshaping the crypto landscape. From FTX's massive lawsuit, to Binance's European jitters, and from the Senate's stalemate on crypto legislation, to India's tightening grip, things are heating up. Buckle up, you don't want to miss this one. FTX is suing former employees of its Hong Kong affiliate, Salamata, for a staggering 157 .3 million dollars. The lawsuit makes allegations against Michael Burgess, Matthew Burgess, and their mother Leslie Burgess, Kevin Nguyen, and Darren Wong, along with two companies they controlled. The suit says the defendants fraudulently withdrew assets leading up to FTX's bankruptcy. This 90 -day period before the bankruptcy filing is known as the preference period. During this time, these individuals allegedly exploited their connections to FTX personnel to prioritize their withdrawals over other customers. But wait, there's more. The lawsuit also claims that Matthew Burgess enlisted other FTX employees to expedite certain pending withdrawal requests. These withdrawals were made just hours after FTX halted all withdrawals on November 8, 2022. More than 123 million dollars of the total 157 .3 million dollars were withdrawn on or after November 7th. Now let's talk about the man at the center of this all, Sam Beckman -Free. Now he's currently in jail awaiting trial. His appeals to get out of jail have been rejected, and so he remains in jail as his trial approaches. What happened is the U .S. Court of Appeals for the Second Court also ruled against SBF. They found no merit in his arguments for release. The court stated that his actions likely fall outside constitutional protection. The court ruled that he likely tampered with witnesses, a claim that he denies. His trial starts on October 3rd where he faces fraud and conspiracy charges. This lawsuit isn't the first time FTX has tried to reclaim payments. They've targeted Beckman -Free, his executives, they've even gone after his parents looking for company funds. But that's not all. His day got a lot worse when Judge Lewis Kaplan blocked all of SBF's proposed expert witnesses. The defense had a lineup of seven individuals from various fields. The Department of Justice objected and the judge sided with them. The defense can't try again, but they're in a tight spot. If convicted, SBF could face over 100 years in prison. Now if you think FTX's legal woes are a storm, brace yourself. We're venturing into the choppy waters of Binance and the EU's regulatory typhoon. Smash that like button and follow us for more analysis. Now let's dive in.