Payment Expert’s Blockchain Bulletin analyses how the world of blockchain is constantly evolving and having a major impact on the payment industry, with cryptocurrencies, NFTs and the metaverse revolutionising the space.
This week, the trial of FTX Founder Sam Bankman-Fried – aka SBF – in New York ramped up as former Alameda Research CEO Caroline Ellison took the stand to testify against her ex-boyfriend.
Ellison claims Alameda took FTX funds to “look less risky to investors”
The crypto world’s eyes are firmly placed on the Federal Court in New York this week as SBF’s trial over the collapse of FTX continues, with Ellison revealing some statements on her relationship with the disgraced former crypto kingpin.
She revealed her romantic relationship “created some awkward situations” once she was anointed as Alameda CEO, as the hedge fund was the sister company of FTX which SBF ultimately stepped away from to focus on his role at the time as CEO of FTX.
Ellison admitted Alameda was receiving money from FTX for its own personal investments to make Alameda’s balance sheet “look less risky to investors”.
Furthermore, the former Alameda CEO also revealed that SBF would take investor money to fund personal “investments and political donations”, as the FTX Founder’s political ties have long-been questioned in order to uphold a popular public image.
SBF’s trial began on 4 October and will conclude on 9 November. If the jury finds SBF guilty on all charges against him, he could face 115 years in prison.
FCA’s new crypto regulations raise 146 alerts
The Financial Conduct Authority’s (FCA) newly established marketing and promotion crypto regulations has already raised 146 alerts.
To give consumers and possibly companies further clarity, the FCA has set up a Warning List and has implored those interested in making investments in the crypto market to read through it to understand which promotions may be breaking the law.
Lucy Castledine, Director of Consumer Investments at the FCA revealed that a ‘significant’ number of companies may not meet the guidelines.
She shared: “There are a significant number of firms who we don’t think we’ll be able to meet the new requirements. There are a number of fairly large overseas crypto exchanges that are targeting the UK that have failed to engage with us
The FCA has warned companies that failure to comply with the new promotion and marketing crypto rules could result in up to two years imprisonment.
UK MPs take aim at football’s link with crypto
Football’s relationship with crypto and its companies has been the subject of a recent discussion by the UK Culture Media Sport Committee which has warned clubs around the volatility and risks associated with cryptocurrencies and digital assets.
It underlined that clubs shouldn’t be able to promote and sell crypto tokens to fans, given how much supporters could lose as a result of embracing and engaging with digital assets – elevated by the fierce loyalty to the club from supporters.
“We are also concerned that clubs may present fan tokens as an appropriate form of fan engagement in the future, despite their price volatility and reservations among fan groups,” stated the committee.
“We recommend that any measurement of fan engagement in sports, including in the forthcoming regulation of football, should explicitly exclude the use of fan tokens.”
Dillon Danis doubles-down on Logan Paul prediction partnering with Duelbits
Ahead of his influencer boxing bout with Logan Paul in Manchester this Saturday (14 October), MMA fighter Dillon Danis has signed a partnership agreement with crypto casino Duelbits.
Duelbits has continued to use sports to boost its brand image, having previously partnered with Chris Eubank Jr prior to his victory against Liam Smith, which also took place in Manchester in September.
Danis stated: “I’m happy to announce that I’ve officially partnered with Duelbits for my fight against Logan!
“Duelbits is the most rewarding crypto casino and sportsbook on the market! Almost as rewarding as when I break Logan’s face in half on October 14th!”