Breaking Crypto News: FTX Exec Sentences, EOS Staking Rewards, Spot ETH ETFs, and More
Stay informed with the latest updates from StealthEX and CryptoDaily. This week, we bring you the hottest news in the world of cryptocurrencies. Curious about what’s trending now? Our digest provides fresh insights and the latest happenings. Stay ahead and don’t miss out on the newest developments!
Sentencing for Former FTX Executives Nishad Singh and Gary Wang
Nishad Singh and Gary Wang, former FTX executives, will be sentenced in New York later this year. Both cooperated with prosecutors in the case against Sam Bankman-Fried. Singh, once FTX’s Director of Engineering, will be sentenced on October 30. Wang, a co-founder and former CTO, faces sentencing on November 20.
Both executives pleaded guilty to multiple federal counts. Their testimonies provided crucial insights into FTX’s operations. Singh, who went to high school with Bankman-Fried, admitted to four federal counts in February 2023. He revealed that Alameda Research, FTX’s hedge fund, misappropriated billions from FTX under Bankman-Fried’s orders.
In September 2022, Singh confronted Bankman-Fried about Alameda’s inability to repay $13 billion. Bankman-Fried dismissed the concern. Singh felt horrified but continued at FTX until its collapse.
Wang, who pleaded guilty in December 2022, disclosed that he gave Alameda special privileges. These included faster order placements and the ability to withdraw funds despite negative balances. These actions contributed to an $8 billion shortfall at FTX.
Both Singh and Wang could face decades in prison. However, their cooperation might lead to reduced sentences. Braden Perry, a former federal enforcement attorney, suggested their assistance could significantly lower their prison time. Ryan Salame, another former associate, received a harsher sentence of 7.5 years for not cooperating. Judge Lewis Kaplan, overseeing these cases, gave Salame a sentence above the government’s recommendation. Singh and Wang, due to their cooperation, are likely to receive more lenient sentences. However, they still face substantial prison terms.
EOS Network Foundation Launches Staking Rewards Program
The EOS Network Foundation has announced a new staking rewards program. The program aims to distribute over 250 million EOS tokens to stakers. This initiative is part of a revamped tokenomics plan to boost platform adoption.
Stakers will receive 85,600 EOS tokens daily, totaling 31 million tokens annually. The rewards schedule will halve every four years. The annual percentage yield (APY) stands at 50%, but it will change based on the amount staked.
In the first four years, 125 million EOS tokens will be distributed to stakers. The new program introduces a 21-day lock-up period, up from four days. During this period, stakers cannot unstake their tokens. Additionally, EOS Block Producers (BPs) will receive network-generated fees on top of their block rewards, incentivizing infrastructure providers as network demand grows.
The tokenomics updates also cap the total EOS token supply at 2.1 billion. They introduce token vesting schedules for network custodians like block producers, the EOS Network Foundation, and EOS Labs. Furthermore, 315 million EOS will be allocated for market making and liquidity provisioning across centralized exchanges and decentralized finance (DeFi) on multiple blockchains.
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Asset Managers File Updated S-1 Statements for Spot Ethereum ETFs
Several asset managers have filed updated S-1 registration statements for Spot Ethereum ETFs, responding to a request from the U.S. Securities and Exchange Commission (SEC). This step moves them closer to potential approval.
On Monday, asset managers such as VanEck, Grayscale, Fidelity, BlackRock, 21Shares, Franklin Templeton, and Bitwise submitted their amended S-1 statements. This action followed the SEC’s July 8 deadline, showing compliance and readiness from the issuers. The SEC requested these new filings to expedite the review process.
Spot Ethereum ETFs are investment funds holding Ethereum, trading on stock exchanges like traditional stocks or commodities. Although the SEC approved the Spot ETH ETF 19b-4 applications on May 23, the S-1s must still be greenlit before trading can begin. The SEC will now review the amended forms and suggest any final adjustments before granting ultimate approval.
Experts believe that the SEC’s request for updated filings increases the chances of approval for Spot Ethereum ETF applications. This situation is similar to the Spot Bitcoin ETF approval process in January 2024, raising hopes for a favorable outcome.
Top analysts predict the SEC will approve the updated drafts within two weeks, as issuers have already completed most preparatory work. Bloomberg analyst Eric Balchunas noted that VanEck’s first S-1 was submitted, adding, “They already had their fee, so nothing to see here, really; they’re just putting the ball back in the SEC’s court. Expecting the rest today except for Bitwise, who did theirs last week.”
Justin Sun Offers to Buy German Government’s Bitcoin Holdings
Tron founder Justin Sun has proposed to purchase the German government’s $2.3 billion Bitcoin holdings off-market. Sun aims to prevent any negative impact on the cryptocurrency’s price.
Sun announced his offer on July 4 via Twitter. He expressed interest in buying Bitcoin (BTC) off-market to avoid significant market disruption. Sun tweeted to his 3.5 million followers, stating his readiness to negotiate with the German government to purchase all BTC off-market.
This isn’t Sun’s first intervention in a potential crisis. He previously offered to stabilize the market during the FTX crisis.
The German government’s Bitcoin wallet first attracted attention on June 19 when it transferred 6,500 BTC, valued at over $425 million. This movement raised concerns about a possible market sell-off, which could negatively affect Bitcoin’s price. Arkham Intelligence tagged the wallet as “German Government (BKA).” It has been actively transferring Bitcoin since mid-June.
The German Federal Criminal Police Office (BKA) seized the Bitcoin in January, taking 50,000 BTC from operators of the pirate movie website Movie2k. The responsibility for the sale of the Bitcoin is unclear. BKA spokeswoman Kristina Sawazki clarified that the criminal unit does not hold the seized Bitcoin. The relevant public prosecutor’s office or court handles the sale or conversion of seized Bitcoins into Euros. The BKA preserves crypto-assets seized during investigations for the public prosecutor’s offices.
On July 4, the wallet transferred $172 million worth of Bitcoin to various crypto wallets, including Coinbase, Kraken, and Bitstamp. This suggests the German government might be preparing to sell its Bitcoin. Earlier, on July 2, the wallet moved $52 million worth of BTC, including transfers to Coinbase, Bitstamp, and Kraken.
Arkham Reveals Vitalik Buterin’s $800 Million Ethereum Portfolio
On June 29, Arkham Intelligence shared insights into Ethereum founder Vitalik Buterin’s cryptocurrency holdings. According to their blog post, Buterin’s estimated net worth was around $552.86 million as of January 2024.
Arkham Intelligence suggested that Buterin’s actual net worth is likely higher, as it primarily comprises his cryptocurrency holdings. The firm disclosed that Buterin’s portfolio is 99% Ethereum.
At the time of the report, Buterin held about 244,001.02 ETH, valued at $573.79 million. This makes him the 20th richest Ethereum holder. Given the current Ethereum price, Arkham estimates Buterin’s holdings are worth over $800 million.
Russia Considers Legalizing Stablecoins for International Payments
Russia is reportedly considering legalizing stablecoins for international transactions. This move aims to help Russian companies navigate the challenges posed by international sanctions and exclusion from traditional financial systems like SWIFT.
Stablecoins are pegged to stable currencies or assets such as the US dollar or gold, making them less volatile than cryptocurrencies like Bitcoin or Ethereum. This stability makes them suitable for international transactions, offering lower risk.
The Central Bank of the Russian Federation (CBR) is actively discussing these proposals. Alexey Guznov, Deputy Chairman of the Central Bank, highlighted the initiative’s importance for simplifying international transactions, especially with China. He stated that regulating the entire process is crucial. This includes transferring assets to Russia, accumulating them, and using them for cross-border payments.
Guznov also mentioned that this could lead to permanent regulation rather than a temporary measure. He noted the need for a refined regulatory framework due to stablecoins’ unique characteristics and popularity, which resemble both digital financial assets (DFAs) and cryptocurrencies.
This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.
