Connect with us

Crypto

Dori: Is your cryptocurrency part of the new FTX scandal?

Published

2 years ago

on

Dori: Is your cryptocurrency part of the new FTX scandal?

Worse than Enron.

That’s what specialists are calling the FTX monetary scandal nonetheless erupting earlier than cryptocurrency buyers’ eyes.

Enterprise ethics writer, founding father of The Integrity Institute and Enron whistleblower Lynn Brewer advised Thursday’s Dori Monson Present that the FTX case might have a good deeper attain – particularly for the hundreds of thousands of consumers who purchased Bitcoin and different cryptocurrencies.

Brewer – who mentioned she was an early crypto investor for $4,000 – mentioned she has ridden the “upside and the draw back” of the acquisition.

In a straight-forward interview, Brewer defined how FTX grew to become a “big cash laundering scheme” that, like Enron, goes to harm “the little man who misplaced their cash.”

Advertisement

FTX was began in 2019 by Sam Bankman-Fried to prop up Alameda Analysis, an organization began in 2017. The businesses – working out of The Bahamas – would purchase Bitcoin and different cryptocurrencies at a lower cost in a single a part of the world and promote them at increased costs elsewhere, leaving Bankman-Fried’s workforce to maintain the earnings.

Dori: Mum or dad upset with appointment of felon as Olympia College Board Member

Despite the fact that Bitcoin was a commerce used on Wall Avenue, Alameda had zero regulatory oversight.

FTX and Alameda, Brewer defined, focused on a regular basis buyers who wished in on buying and selling the favored new cryptocurrencies. Excessive-profile celebrities – together with NFL celebrity Tom Brady and Larry David, co-creator of TV’s “Seinfeld” and “Curb Your Enthusiasm,” had been used to promote the corporate.

Firm officers advised potential buyers final 12 months that it was making $1 billion in annual income. With its leveraged, or borrowed, cash, Bankman-Fried is believed to have bought hundreds of thousands in offshore actual property. Earlier than the scandal broke, the 30-year-old was believed to be price $23 billion.

Advertisement

Final week, legal professionals – together with his Stanford Regulation College professor and father, Joseph – satisfied Bankman-Fried to step down. John Ray III has since been named the brand new CEO. Ray was additionally on the workforce that handled the aftermath of the Enron collapse.

Studies present that as a result of FTX and Alameda had been so depending on one another, each firms had been shattered when crypto costs began dropping earlier this 12 months. The downfall has created billions of {dollars} in losses for crypto merchants and clients.

Extra from Dori: Ingraham instructor swears, blames Seattleites who ‘didn’t vote blue’ for varsity taking pictures

How had been there no pink flags? Dori puzzled.

“There have been pink flags,” Brewer responded. She pointed to Bankman-Fried’s personal public feedback about what he noticed as weaknesses in rules that allowed him to function.

Advertisement

In the meantime, Brewer added, with $70 million in contributions, Bankman-Fried’s firm was the third largest donor to the Democratic Social gathering. As compared, the now-bankrupt vitality firm, Enron, donated $100 million to Republicans.

Take heed to Dori Monson weekday afternoons from midday – 3 p.m. on KIRO Newsradio, 97.3 FM. Subscribe to the podcast right here.

Advertisement
Related Topics:
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Crypto

Crypto Market Boredom: Bitcoin & Altcoins See Volume Crash

Published

6 hours ago

on

January 14, 2025

By

Crypto Market Boredom: Bitcoin & Altcoins See Volume Crash

On-chain data shows the cryptocurrency traders have hit the snooze button as Bitcoin and other assets have witnessed a plunge in volume.

Bitcoin & Altcoins Have Seen A Trading Volume Crash Recently

According to data from the on-chain analytics firm Santiment, trading volume has seen a slowdown in the cryptocurrency sector during the past week.

The “trading volume” here refers to an indicator that keeps track of the total amount of a given asset that’s becoming involved in trading activities on the major exchanges. When the value of this metric goes up, it means the investors are participating in a higher amount of activity related to the coin. Such a trend implies interest in the asset is on the rise.

On the other hand, the indicator observing a decline suggests the traders may be starting to put their attention elsewhere as they are taking part in a lower amount of activity.

Now, here is a chart that shows the trend in the combined Bitcoin trading volume for four different segments of the digital asset sector:

Advertisement
The value of the metric appears to have gone through a decline for all of these groups | Source: Santiment on X

In the above graph, the four sides or segments of the cryptocurrency market displayed are: Memecoins Top 6, AI & Big Data Top 6, Layer 1 Top 6, and Layer 2 Top 6.

“Layer 1” assets refer to those that circulate on blockchains that handle their own security and aren’t built on top of another ecosystem. Bitcoin and Ethereum are the most prominent examples of coins of this type. The coins that aren’t on primary networks, like Polygon (MATIC) and Arbitrum (ARB), are termed Layer 2.

From the chart, it’s apparent that the six largest coins for both of these categories have seen a sharp decline in their trading volume recently. Segments like meme-based tokens and AI-related coins have also noted cooldowns of their own at the same time.

Back in November and the first half of December, the volume was high across the market as traders made a large number of moves during the Bitcoin bull run hype. It would appear, though, that the recent bearish shift has damaged the investor morale.

Advertisement

After the latest continuation of the decline in the indicator, trading activity in the market has slumped to the lowest level since the 4th of November, a day before the presidential elections in the US.

Generally, the market tends to see volatility when a large number of traders are participating in trading activity, as it’s their trades that fuel price moves. Since the trading volume has slumped across the cryptocurrency sector recently, it’s possible that Bitcoin and others might see a state of calm in the near future.

The low activity may even be considered a sign that there is FUD in the market, which is something that has facilitated bottoms in the past.

BTC Price

At the time of writing, Bitcoin is trading at around $90,700, down almost 8% in the last week.

Bitcoin Price Chart 

Looks like the price of the coin has been going down over the past day | Source: BTCUSDT on TradingView

Featured image from Dall-E, Santiment.net, chart from TradingView.com

Advertisement
Continue Reading

Crypto

Congressman Who Wanted Airport Named After Trump Buys Bitcoin, Solana, XRP Token Ahead Of Inauguration

Published

14 hours ago

on

January 13, 2025

By

Congressman Who Wanted Airport Named After Trump Buys Bitcoin, Solana, XRP Token Ahead Of Inauguration

A member of Congress disclosed buying three cryptocurrencies in December, as the sector gets ready to welcome in a pro-cryptocurrency White House administration.

What Happened: With many cryptocurrencies hitting new all-time highs after Donald Trump’s 2024 election win, members of Congress like Representative Guy Reschenthaler (R-Pa.) are adding crypto to their portfolio.

According to Benzinga’s Government Trades page for Reschenthaler, the Republican Representative disclosed the trades recently in one filing.

Here are the cryptocurrencies purchased and the dates the trades were made:

  • Dec. 11: $1,000 to $15,000 Solana SOL/USD
  • Dec. 11: $1,000 to $15,000 XRP Token XRP/USD
  • Dec. 23: $1,000 to $15,000 Bitcoin BTC/USD

The transactions are the first disclosed by Reschenthaler since he joined Congress in 2019.

Did You Know?

Advertisement

Why It’s Important: Reschenthaler, 41, has not been as vocal about cryptocurrency as other members of Congress have been. The purchase could be due in part due to his belief that a Trump presidency will be bullish for the cryptocurrency sector.

Here is a look at how much the Congressman paid for the cryptocurrencies versus where the price is today:

  • Solana: 12/11 range $211.99 to $230.51, today $175.83
  • XRP: 12/11 range $2.24 to $2.47, today $2.45
  • Bitcoin: 12/23 range $92,403.13 to $96,416.21, today $91,836.61

Two of the Congressman’s purchases have lost money while the purchase of XRP has turned into a winning trade. Benzinga will closely monitor the trading activity of members of Congress when it comes to cryptocurrency in the coming months.

Last year, Reschenthaler proposed renaming the Washington Dulles International Airport, which is located 25 miles from Washington, D.C., to the Donald J. Trump International Airport.

“In my lifetime, our nation has never been greater than under the leadership of President Donald J. Trump,” Reschenthaler said at the time. “As millions of domestic and international travelers fly through the airport, there is no better symbol of freedom, prosperity, and strength than hearing ‘Welcome to Trump International Airport’ as they land on American soil.”

Read Next:

Advertisement

Image: Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement
Continue Reading

Crypto

VT Markets Anticipates Cryptocurrency Growth from Policy Changes and Market Momentum in 2025 Q1 Economic Outlook

Published

21 hours ago

on

January 13, 2025

By

VT Markets Anticipates Cryptocurrency Growth from Policy Changes and Market Momentum in 2025 Q1 Economic Outlook

HONG KONG SAR – Media OutReach Newswire – 13 January 2025 – VT Markets, an award-winning financial services provider, today releases its 2025 Q1 Economic Outlook. The report highlights how the dual tailwind of favourable policies and market dynamics will propel the cryptocurrency sector into a new era of mainstream adoption. The report also underscores the transformative strides achieved by cryptocurrencies in 2024, which sets the stage for further growth in the upcoming year.

2024 As A Landmark Year for Cryptocurrency

With the conclusion of the 2024 U.S. Presidential election, cryptocurrencies have ascended from niche assets to mainstream investment products. Political developments, particularly arising President Trump’s re-election and his pro-cryptocurrency stance, acted as the main catalyst for this phenomenon. Participants observed Bitcoin’s price surging by over 40%, crossing $108,000 by year-end anticipating dovish policy shifts and renewed investor confidence towards the digital asset.

Key regulatory appointments, such as naming crypto advocate Hester Peirce as SEC Chair, signalled to the market a shift towards a more favourable regulatory framework, instilling optimism in institutional and retail investors alike.

The Rise of Spot Bitcoin ETFs

Advertisement

In early 2024, the U.S. SEC approved multiple spot Bitcoin ETFs; a significant breakthrough for the cryptocurrency industry then. By year-end, assets under management for these ETFs grew from $28.8 billion to $110 billion. Among them, BlackRock’s IBIT ETF stood out, achieving record-breaking $30 billion AUM in under 300 days.

This development not only validated cryptocurrencies as a mainstream investment class but also paved the way for wider institutional participation. The integration of cryptocurrency into traditional finance is seen as a key step toward standardisation – an issue which has plagued the industry since its inception.

Liquidity and Risk Appetite Fuel Growth

Macroeconomic conditions, including the Federal Reserve’s shift towards an easing monetary policy, contributed to increased market liquidity and higher risk asset valuations. Cryptocurrencies, known for their high-risk, high-reward profile, inevitably emerged as a preferred choice for portfolio diversification, further driving their adoption and price momentum.

2025 Will Be A Year of Regulatory Clarity and Technological Innovation

Advertisement

Looking ahead, the cryptocurrency sector is poised for greater regulatory clarity and broader market acceptance globally:

United States: Expected legislation on stablecoins and other crypto assets will a establish a clear regulatory environment.

European Union: The upcoming implementation of the Markets in Crypto-Assets Regulation (MiCA) will enhance transparency and compliance.

Asia-Pacific: Singapore and Hong Kong are set to strengthen their positions as regional crypto hubs, promoting Web3 development and reopening licensing opportunities for exchanges.

Emerging Markets: Countries like Brazil, the UAE, Australia, and South Africa are advancing efforts to legitimize cryptocurrencies, potentially becoming regional leaders in the sector.

Advertisement

A New Era for Mainstream Cryptocurrency Adoption

The VT Markets’ Research Desk suggests that the confluence of supportive policies, transparent regulations, and robust market conditions will accelerate the mainstream adoption of cryptocurrencies.

They believe that this transition from speculative assets to recognised investment products will be a pivotal moment in financial innovation.

https://www.linkedin.com/company/89310903/admin/feed/posts/

https://www.facebook.com/VTMarketsCN

Advertisement

https://www.instagram.com/vtmarkets/

Hashtag: #VTMarkets #CFDs #CFDsbrokers #cryptocurrency #Bitcoin #bitcointrading

The issuer is solely responsible for the content of this announcement.

Advertisement
Continue Reading
Advertisement

Trending