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Crypto Flipsider News – SBF Investigation; Spain CBDC Project; Russia Bans BTC Miners; Coinbase Drop 50%; EMAX Lawsuit Dismissed

Crypto Flipsider News – SBF Investigation; Spain CBDC Project; Russia Bans BTC Miners; Coinbase Drop 50%; EMAX Lawsuit Dismissed
© Copyright Image: DailyCoin.com

Read in the Digest:

  • Sam Bankman-Fried faces market manipulation inquiry by U.S. prosecutors
  • Central Bank of Spain opens proposal for wholesale CBDC test project
  • Russian Central Bank to ban Bitcoin miners from selling BTC in the country
  • Coinbase CEO confirms 50% drop in 2022 trading revenue from last year
  • Judge dismisses EMAX investors lawsuit against Kardashian & Mayweather

Sam Bankman-Fried Faces Market Manipulation Inquiry by U.S. Prosecutors

Sam Bankman-Fried, the founder of the beleaguered FTX, is reportedly facing an investigation by U.S. Federal Prosecutors into market manipulations for TerraUSD and LUNA, which collapsed this May.

The prosecutors are investigating whether SBF manipulated the prices of the two interlinked cryptos to benefit the entities he controlled, including FTX and Alameda Research. 

The investigation seeks to confirm if Bankman-Fried’s empire intentionally created a flood of “sell” orders on Terra’s algorithmic stablecoin TerraUSD (now TerraClassicUSD), which led to the USTC being depegged from the USD.

According to the report, most USTC sell orders came from Bankman-Fried’s Alameda Research. In addition, an insider reports that Alameda Research also placed a big bet on the price of LUNC falling.

Flipsider:

  • Bankman-Fried has denied any wrongdoing, saying he didn’t want to commit fraud and wasn’t involved in the “improper use of customer funds.”

Why You Should Care

The investigation is part of the broader inquiry into the recent collapse of Bankman-Fried’s FTX.

Central Bank of Spain Opens Proposal for Wholesale CBDC Test Project

Banco de España (BDE), also known as the Central Bank of Spain, has revealed its plans to initiate a wholesale central bank digital currency (CBDC) project, asking financial institutions to submit proposals for the initiative.

According to the BDE, the project will simulate the use of a CBDC in wholesale transactions (transactions between banks and financial institutions). It also clarified that the initiative isn’t related to the Digital Euro research of the EU. 

The initiative will focus on simulating the movement of funds, experimenting with the liquidation of financial assets, and analyzing the pros and cons of introducing a wholesale CBDC to its current processes and infrastructure.

Financial institutions seeking to join the project must meet the minimum requirements set by the bank and disclose the “economic means” they’re willing to commit. The proposal period for financial institutions is January 31st, 2023.

Flipsider:

  • According to Brad Jones, the Assistant Governor of the Reserve Bank of Australia, CBDCs could result in people avoiding commercial banks entirely.

Why You Should Care

Through the project, the BDE looks to ascertain how much CBDCs can contribute to the needs and demands of the dynamic, ever-changing digital society.

Russian Central Bank to Ban Bitcoin Miners from Selling BTC in the Country

The Central Bank of Russia continues to take a negative stance on crypto, proposing a bill to stop local Bitcoin miners from selling their BTC to locals, despite legalizing crypto in the country. 

A local news media reported on December 7th that the Central Bank wants Russia-based Bitcoin miners to sell their coins only to foreign crypto exchanges and non-residents of Russia.

However, Russian miners who want to sell their coins within the country must operate through an ” authorized authority.” The move will bring “total licensing” to crypto mining in Russia.

The news comes shortly after the Russian Ministry of Finance opposed the Central Bank of Russia’s proposal to introduce strict licensing of crypto mining operations in Russia. 

Flipsider:

  • As part of new sanctions against Moscow, the European Commission will propose a ban on new investments in Russia’s mining sector.

Why You Should Care

The proposal could put miners at a crossroads, given many foreign crypto exchanges have banned Russia from using their platforms.

Coinbase CEO Confirms 50% Drop in 2022 Trading Revenue from Last Year

Brian Armstong, the CEO of Coinbase, America’s leading crypto exchange, has confirmed that his company’s revenue will fall by half or less than what it generated last year as the exchange struggles through the winter.

In an interview, Armstrong said, "Last year in 2021 we did about $7 billion of revenue and about $4 billion of positive EBITDA, and this year with everything coming down it’s looking, you know, about roughly half that or less."

The estimated decline in Coinbase’s revenue comes amidst a drop in crypto prices, reduced trading volumes, and continuing ripple effects from multiple bankruptcies of crypto companies this year. 

According to data from FactSet, Coinbase generated $7.8 billion in revenue in 2022. However, FactSet estimates a $3.2 billion revenue for Coinbase this year, which would be a 59% drop from 2021.

Flipsider:

  • While some top crypto figures have backed Bankman-Fried, Armstrong has said he doesn’t believe that FTX’s troubles were just the result of accounting errors.

Why You Should Care

The poor performance of Coinbase is not a shock, as it has a high correlation to Bitcoin and depends largely on trading fees.

Judge Dismisses EMAX Investors’ Lawsuit Against Kardashian and Mayweather

On Wednesday, a federal judge in California dismissed the lawsuit filed by EMAX investors against the reality star Kim Kardashian and boxing legend Floyd Mayweather Jr. for promoting the EMAX crypto project. 

The lawsuit claims both celebrities misled fans over the EMAX token, using their wide fanbases to promote the purchase of the tokens to “dupe” potential investors. 

According to U.S. District Judge Michael Fitzgerald, it was not clear that the investors who sued saw the promotions. He adds that investors failed to show that the executives and promoters schemed to mislead investors. 

In June 2021, Kim Kardashian promoted EthereumMax via a post on Instagram, while Mayweather wore the company’s logo on his boxing trunks during a widely viewed fight.

Flipsider:

  • Judge Michael also told investors that they can amend and refile their proposed class action.

Why You Should Care

The ruling comes amidst a crackdown by the Federal Trade Commission (FTC) on advertising misconduct in the crypto industry.

Read more: https://dailycoin.com/crypto-flipsider-news-sbf-investigation-spain-cbdc-project-russia-bans-btc-miners-coinbase-drop-50-emax-lawsuit-dismissed/

Text source: DailyCoin.com

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
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