Ftx Digital, House Financial Services Committee, U.S. Justice Department discussed on The Decrypt Daily: Bitcoin & Cryptocurrency News Podcast
A hell of a day. It was a day that Brad Sherman dubbed SPF as inmate 14 three 7 two during the House financial services committee. But for this news, we have to go back to Monday, Monday, inmate 14 three 7 two, said that he will not appear at the House committee hearing because of the paparazzi effect. Then The Bahamas said, don't worry about anything. We'll got that for you. You don't have to appear. We'll just arrest you. And he did. In fact, get arrested. Inmate 14 three 7 two was charged with. Conspiracy to commit wire fraud on customers, wire fraud or customers, conspiracy to commit wear frown on lenders. Wire fraud on lenders. Conspiracy to commit commodities fraud. Conspiracy to commit securities fraud. Conspiracy to commit money laundering and conspiracy to defraud the United States and violate campaign finance laws. Also, on Tuesday, the U.S. Justice Department, they were considering finding criminal charges against binance and CZ zhao. Prosecutors are divided, whether to move aggressively and quickly against the exchange or take more time to review the evidence. This is according to Reuters, citing four sources familiar with the matter. On Wednesday, inmate 14 three 7 two in extreme privilege and a delusional state of his surroundings and his situation told everybody that he's willing to accept house arrest, just I'm willing to. Don't worry about it. I'm willing to do this. I'm willing to accept house arrest. And he wanted the judge to give him low bail so he can sit at home and, you know, just think about things. And this is literally what he said literally. This is I'm not making this up. This person of extreme privilege and apparently things that he could do whatever the hell he wanted told the judge. I'm willing to accept house arrest. Well, the judge wasn't having it, he said, held to the gnaw called inmate 14 three 7 two a flight risk and ordered sandbank and freed to be sent to the country's Department of Corrections. Right now, rumor has it, he's sitting in a rat infested jail. But he's in good spirits, apparently. And what do we say about this? We don't really care, do we? Also on Wednesday we heard from SEC's Hester purse, she said that she has seen no real movement on the SEC crypto regulations, so she joined in 2018. And this goes to what the House financial service committee was asking, and the Senate was asking, how could this happen? I want to push it back to the legislators, the house, the Senate. Look, through the house and Senate hearings and I sat through quite a bit of it. I want to see probably about 60% of both of them. I never heard them take personal accountability and say, you know what? We dropped the ball. We didn't make any legislation. We knew this was happening. We didn't force the SEC or the CFTC or anybody to do anything. We didn't make any regulations we didn't propose any bills will be proposed bills, but there's bills just sitting there. We didn't move on anything. Just totally delusional. Total lack of personal responsibility, they are the legislators. Why didn't they not do anything? But now, everyone wants to try to figure out in point fingers that everybody else. This total dysfunction and finally on Wednesday, CZ jao told employees in a memo that he expects the next several months to be bumpy, and there'd be a lot of extra scrutiny and tough questions that they have to answer for. On Wednesday, binance customer draws exceeded $3 billion in 24 hours. Yesterday, Thursday, documents obtained by The Wall Street Journal, revealed that FTX digital chairman tipped off authorities in The Bahamas about FTX using customer funds to cover losses at Alameda research. The executive director of the securities commission of The Bahamas sent requests to investigate, marked urgent to the commissioner of the royal Bahamas police force. On November 9th, 2022. FTX digital chairman told officials that client assets which may have been held with FTX digital were transferred to Alameda research and such transfers were not allowed and therefore made constitute as misappropriation, theft, fraud or other crime. He also told authorities that the only people who were able to transfer crime assets to Alameda and who had the necessary codes or passwords to do so was inmate 14 three 72, Sam beaten and freed, director of engineering, and cofounder Gary Wong. Also yesterday The White House refused to clarify whether it would return any political donations made to president Joe Biden by disgraced FTX founder. Sam Bateman freed. It also won't comment whether elected officials should return similar donations. And this was from The White House press secretary, karine, John Pierre. Crean jumpier also says she's barred from publicly discussing the subject, or the president's views on it, she said four times in that press conference that she's covered by the haj. What is the Hatch Act? Well, the Hatch Act is a federal law that aims to prevent government employees from engaging in political activities while on duty or using government resources. It applies to most executive branch employees as well as some state and local government employees. But does not apply to the president or the vice president. Violations of the Hatch Act can result in fines or removal from office. And moving into today's news. Now, I'm trying to experiment. This is not going to be the norm. I just want to be fully transparent about this because when I was really curious because I heard that Chad GPT can summarize different articles. And so I wanted to have it summarized articles for today's news. And so today's news is all summarized by Chet GPT written by chap GPT just because I want to play with it. Tell me what you think. Matthew and crypto CEO. Trust me, this is not what I'm going to do every week for every new show. I just want to try it. Here we go. FTX has filed a motion in the bankruptcy court of Delaware to seek approval for the sale of four independent solvent subsidiaries. The company is attempting to generate funds to repay its creditors, who it owes billions of dollars. The subsidiaries up for sale are in bed technologies, ledger X, LLC, FTX, Japan, and FTX Europe. The motion is scheduled for a hearing on January 11th, 2023. And the deadline for objections is December 29th, 2022. FTX has already received dozens of unsolicited bids for the subsidiaries, but the sale can not proceed without court approval. The deadlines for the bids for the difference subsidiaries range from January 18th of 23 to February 1st of 23. A class action lawsuit has been filed against silvergate bank, so get capital corporation and civil gate, CEO Allen lane, alleging that they aided and abetted the fraudulent activities of now bankrupt cryptocurrency exchange, FTX. The Sue claims that civil gate, a federally regulated bank, maintained accounts for both FTX and its affiliated company Alameda research and engaged in firsthand participation in the co mingling of funds in proper transference and lending out customer money. The suit also accused the defendants for making misleading statements and failing to disclose that the company's platform did not have sufficient controls and procedures in place to detect instances of money laundering. The suit comes after silvergate stock was downgraded by Morgan Stanley. And as we know a group of senators, including Elizabeth Warren, was sent a letter requesting information about silver Gates relationship with FTX and Sammy McFly entities. And finally today, coinbase is developing a tool that will allow users to recover their ERC 20 tokens that were previously thought to be permanently stranded after being sent to incompatible addresses associated with the exchange. The tool which will be available in the next few weeks will be able to recover 4000 unsupported tokens. The amount of lost tokens is unknown, but coinbase said it is a small fraction of the total transfers made. Users who want to recover their tokens will need to provide information about the transactions that led to the laws, and a small fee will be charged to recover the amount of over $100. It is not clear yet if the tool supported incompatible tokens beyond ERC 20s and will not be available in Japan or on coinbase prime.