Crypto
Was crypto on trial with Sam Bankman-Fried?
As the trial of the former crypto star and FTX founder Sam Bankman-Fried began last month, headlines declared cryptocurrency was on trial too.
But when Bankman-Fried was found guilty on seven counts of wire fraud and money-laundering conspiracy Thursday evening, after less than five hours of jury deliberations, Bitcoin was trading at its highest price in a year.
As the scene in the courtroom played out, it became clear it wasn’t so much cryptocurrency on trial as the crypto bro himself – both Bankman-Fried and the archetype: the tech dilettante who believes he’s such an all-around genius that he can get rich with no expertise and an unkempt head of Einstein hair.
During his three days on the stand, Bankman-Fried admitted to knowing nothing about cryptocurrency. He didn’t know anything about financial regulation, either. He said he believed FTX’s terms of service allowed Alameda Research, its closely associated hedge fund, to use FTX customer funds the way it did, actions prosecutors and the jury called fraud. Asked what he knew about crypto before starting FTX, he answered: “I had absolutely no idea how they worked. I just knew they were things you could trade.”
While parts of the trial delved into the technical and financial structure of FTX’s grand scam, the prosecution spent much of its time questioning Bankman-Fried about his public persona. The assistant US attorney Danielle Sassoon wanted to puncture his unkempt boy-genius look, demonstrating to the jury that he used his appearance to woo investors and reassure customers that they were safe in his hands, when in fact they were far from it.
The prosecution’s vivisection of his image worked. Perhaps we’ve grown weary of the unkempt Mark Zuckerberg school of style. You can read the verdict as such: a hoodie in place of a suit jacket does not mean you are focused on your product to the exclusion of all else; it means you are an amateur. Bankman-Fried admitted during the trial that he was.
The question after his conviction is whether the entire industry will be found guilty, or just him.
The trial did not focus extensively on the technological or legal governance of cryptocurrency or blockchain as Bankman-Fried’s means to an end. Rather, the central question was whether the one-time mogul “misappropriated and embezzled” his customers’ money for his own high-flying ends. The crime is as old as banking itself, but it’s being committed with a new and unregulated technology.
Damian Williams, the prosecutor in charge of the southern district of New York, spoke to this when he said to reporters after the conviction: “Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history – a multibillion-dollar scheme designed to make him the king of crypto – but while the cryptocurrency industry might be new and the players like Sam Bankman-Fried might be new, this kind of corruption is as old as time.”
A look at Bitcoin today reveals the conflicted state crypto finds itself in. Because of Bankman-Fried, cryptocurrencies’ backers have never looked worse. Still, there are signs that Bitcoin will endure: The original cryptocurrency is on the verge of a major regulatory victory in the expected approval of exchange-traded funds, including it.
Also, to industry insiders, the one-time boy wonder is not the avatar of cryptocurrency. They are not like him, they think. And they may have a point: cryptocurrency is not doomed because Bankman-Fried is. Bitcoin is valuable, especially if you bought some in January of this year: it’s up 110% year-to-date.
That Bitcoin has such value in spite of some infamous champions – FTX, the Mt Gox exchange, the ever-unwelcome Winklevoss twins – points to a lasting life, perhaps not as the world-changing technology some had hoped for, but as a place to park money. We may trade Bitcoin for the foreseeable future, we may trade it as long as we do stocks, and the true blockchain believers will continue to buoy its value. It’s likely to remain a symbol of libertarian rebellion against the financial system.
For true believers, the trial has simply been a distraction from the good work. Said Wired: “The Crypto World Is Already Sick of SBF’s Trial.” For those who do not belong to that school of thought, Bankman-Fried has irrevocably, irreparably, irresponsibly and irredeemably damaged the reputation of this technology. Said the Financial Times’ opinion pages: “The SBF trial is a reminder that crypto is a rotten business.” After the downfall of FTX, many people would probably take their chances gambling in Las Vegas before putting their money in crypto.
One lasting legacy of Bankman-Fried’s downfall is that it ushered in an era of crypto crackdowns in the US. The Commodity Futures Trading Commission has sued Binance, the world’s largest crypto exchange; and the Securities and Exchange Commission has charged Coinbase with operating as an unregistered securities exchange, broker and clearing agency. Both companies deny wrongdoing.
If Bankman-Fried had been found innocent, I might have said definitively that crypto had, in fact, been on trial. The jury would have committed a spectacular act of faith in cryptocurrency in acquitting him.
Bankman-Fried might have struck upon a different, unregulated industry ripe for exploitation. Crypto was the one that was available.
Crypto
ZIUM Launches to Revolutionize Instagram and Cryptocurrency Solutions
Zagreb, Croatia–(Newsfile Corp. – January 12, 2025) – ZIUM, a cutting-edge agency founded to tackle some of the most pressing challenges in social media and digital marketing, is now officially open for business. Specializing in Instagram username claims, account unbans, and cryptocurrency marketing, ZIUM has positioned itself as a trusted partner for individuals and businesses seeking innovative solutions in the digital age.
The agency operates at the intersection of technology, social media, and blockchain marketing, empowering clients to unlock their full potential online. With a dedicated team of experts and a results-driven approach, ZIUM is redefining the way people navigate the ever-changing online landscape.
ZIUM
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A New Era of Digital Problem Solving
ZIUM’s services address real-world challenges in today’s digital ecosystem. Instagram, one of the largest and most influential social platforms, has become a critical tool for personal branding, business promotion, and community engagement. However, issues such as unavailable usernames or unfair account suspensions can hinder growth and cause frustration. ZIUM steps in to provide solutions that are fast, efficient, and tailored to each client’s needs.
Additionally, ZIUM excels in cryptocurrency marketing, offering projects and startups a strategic edge in the fast-paced blockchain industry. By combining deep knowledge of crypto trends with cutting-edge marketing strategies, the agency helps blockchain projects stand out in an increasingly crowded market.
Core Services Offered by ZIUM
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Instagram Username Claims
In the crowded social media space, having the perfect Instagram username can make all the difference. Whether it’s for a brand, influencer, or business, ZIUM specializes in acquiring sought-after usernames to align with clients’ goals and identities. The agency handles the process from start to finish, ensuring a smooth and hassle-free experience. -
Instagram Account Unbans
Account suspensions on Instagram can be devastating, especially for businesses and influencers relying on the platform for engagement and revenue. ZIUM offers expert account recovery services, helping clients navigate Instagram’s policies to regain access to their accounts quickly and effectively. -
Cryptocurrency Marketing
The cryptocurrency space is highly competitive, and visibility is key. ZIUM provides end-to-end marketing strategies tailored to blockchain projects, ensuring they reach the right audience. From brand development to targeted campaigns, ZIUM helps crypto ventures grow and thrive in an ever-evolving market.
Crypto
Donald Trump Embraces Meme Coins—A Presidential First
Donald Trump is making news once more, but this time it’s not for political reasons; it’s about cryptocurrency. As he prepares to return as the 47th President of the United States, Trump will become the first sitting president to own meme currencies, a decision that has stirred both enthusiasm and skepticism in the crypto community.
Trump: A Significant Crypto Portfolio
Recent sources claim that Trump’s crypto wallet consists largely of meme coins and is valued roughly $8 million. Among the assets are $1.5 million in a meme currency with Trump-themed design and $5.5 million in TROG tokens.
In addition, he has about 1.3 billion GUA coins, which amounts to nearly $400,000, and $167,000 in TRUMPIUS tokens. This is a first of its kind, where Trump becomes an oddity in the world of politics and cryptocurrency, considering his earlier reluctance towards digital assets.
DONALD J. TRUMP WILL BE THE FIRST SITTING US PRESIDENT TO HOLD MEMECOINS pic.twitter.com/ODlNXDaKIT
— Arkham (@arkham) January 10, 2025
From Skepticism To Support
Trump’s journey into the crypto world is notable. He had been a strong critic of Bitcoin and other cryptocurrencies, calling them scams. But that all changed in 2024 when he started publicly endorsing Bitcoin and speaking out for the right to own it. That’s a broader trend among politicians, who are increasingly recognizing the potential of cryptocurrencies and their growing popularity among voters.
Trump’s financial success in the digital sphere was also aided by his venture into non-fungible tokens (NFTs) on Ethereum. Trump reportedly made a good living from these endeavors, and he currently owns roughly 496.77 ETH, which is worth about $1.6 million.
Implications For Regulation
Many people are eager to see how Trump’s administration will regulate cryptocurrencies now that he is back in office. A possible change toward a more advantageous regulatory climate for digital assets is hinted at by the nomination of important individuals like David Sacks as “Crypto Czar” and Paul Atkins as SEC chair. This could result in more precise rules for investors and businesses involved in the cryptocurrency industry.
Donald Trump. Image: Ronda Churchill/Reuters
The policies by Trump are already changing market dynamics as everybody is anxiously awaiting them. During this time when Bitcoin hit a record high of $108k, while meme coins surged, analysts still feel that Trump could make the year 2025 a major turning point in cryptocurrencies.
Meme Coin Boom
The rise of Trump-owned meme coins is indicative of a broader cultural shift among younger investors who are fed up with established financial institutions. This combination of the political influence of Trump and the speculative nature of meme coins puts a scenario under which political events could significantly affect cryptocurrency markets. Thus, while the investors go about this, they are not ignorant of the volatility that is usually associated with meme coins.
Featured image from Fortanix, chart from TradingView
Crypto
Scammers steal $2 million in cryptocurrency from remote work seekers in New York, Florida
Scammers stole millions of dollars in cryptocurrency from remote job seekers in an elaborate scheme. New York Attorney General Letitia James has filed a lawsuit to recover over $2 million that she said was stolen from New Yorkers and others nationwide.
Scammers used unsolicited text messages to lure victims with promises of flexible, well-paying remote work opportunities. They claimed the job involved reviewing products online to generate market data. However, victims were told to open cryptocurrency accounts and maintain balances matching the price of products they were reviewing.
While victims believed they would receive their investments plus commissions, the funds were instead transferred into the scammers’ crypto wallets. The fake product reviews took place on a fraudulent website created as part of the scheme.
The lawsuit details seven people who were scammed. One victim, a New Yorker, lost over $100,000 while another victim from Florida lost over $300,000. These cases show the significant financial and emotional impact on the victims.
James’ office, working with Queens District Attorney Melinda Katz and her cryptocurrency unit, traced the stolen funds to specific digital wallets. Over $2 million in cryptocurrency has been frozen, ensuring it can be returned to victims.
“Deceiving individuals seeking remote work is cruel and unacceptable,” said James. “We’re committed to holding scammers accountable and recovering stolen funds.”
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