Sam Bankman-Fried, former CEO of FTX, has been sentenced to 25 years in prison. Meanwhile, Fidelity is making moves to introduce an Ether ETF with staking options, and Coinbase faces a legal setback as a U.S. court allows the SEC to proceed with its lawsuit against the exchange.
Key Takeaways
- Sam Bankman-Fried sentenced to 25 years in prison for multiple felony charges.
- Fidelity files for a spot Ether ETF with staking options.
- U.S. court allows SEC to proceed with its lawsuit against Coinbase.
- Ripple faces a potential $2 billion penalty from the SEC.
- Bitcoin price speculation suggests a potential short squeeze.
Sam Bankman-Fried Sentenced to 25 Years in Prison
Former FTX CEO Sam “SBF” Bankman-Fried will serve 25 years in prison following a sentencing hearing in federal court. On March 28, Judge Lewis Kaplan of the United States District Court for the Southern District of New York sentenced Bankman-Fried to 240 months and 60 months for his conviction on seven felony charges. Judge Kaplan found that SBF also committed witness tampering and perjury based on his testimony at trial over FTX user funds. SBF was the first person tied to FTX and Alameda Research to face prison time.
Fidelity Files for Spot Ether ETF with Staking
Fidelity filed an S-1 application with the United States Securities and Exchange Commission (SEC) on March 27 to create a spot Ether exchange-traded fund (ETF). The ETF will give Fidelity the option to stake part of the ETH it holds. Fidelity Digital Asset Services, affiliated with sponsor FD Funds Management, would serve as custodian of the trust’s ETH. The SEC has pushed back the approval deadline for other ETH ETFs to May 23. There are currently eight applicants for spot ETH ETFs awaiting an SEC decision.
SEC Can Proceed with Coinbase Lawsuit
A United States court has denied Coinbase’s motion to dismiss the SEC’s case against the exchange. The decision, made by U.S. District Judge Katherine Failla, allows the commission to pursue its lawsuit against Coinbase. The SEC sued Coinbase in June 2023, alleging the crypto exchange violated federal securities laws by listing 13 tokens it claimed were securities. Coinbase was seeking an order to drop the case, questioning the SEC’s authority over crypto exchanges.
Ripple Faces Potential $2 Billion Penalty
Ripple Labs chief legal officer Stuart Alderoty said the U.S. SEC asked a federal judge for a $2-billion penalty against the blockchain firm. Alderoty stated that the firm planned to file a response to the SEC request in April but claimed the regulator “trades in statements that are false, mischaracterized and designed to mislead.” Filed by the SEC in December 2020, the lawsuit against Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen alleged the firm raised $1.3 billion in unregistered securities through sales of XRP tokens.
Bitcoin Price Speculation and Short Squeeze
As Bitcoin hovers around the $70,000 price mark, there’s speculation that short-sellers are feeling the pressure due to diminishing downtrends and quicker-moving uptrends, potentially driving Bitcoin’s price to $80,000. According to an analyst, this is a textbook sign that shorts are being squeezed as Bitcoin hits fresh all-time high territory. If Bitcoin price reaches $71,000, $156.18 million in short positions will be liquidated. A climb to $75,000 will liquidate $3.85 billion in short positions.
FUD of the Week
- US Justice Department charges KuCoin and two founders with violating AML laws: The DOJ unsealed an indictment against KuCoin and two of its founders for “conspiring to operate an unlicensed money transmitting business” and violations of the Bank Secrecy Act.
- Munchables hacker returns $62.8M Ether without ransom: Ethereum-based NFT game Munchables reported a hack that drained over 17,400 ETH. The hacker returned the stolen Ether without demanding a ransom.
- US lawmakers demand SEC clarify position on Prometheum’s plans for Ether: Lawmakers are urging SEC Chair Gary Gensler to address Prometheum’s intention to offer institutional custody services for Ether, which is at odds with the CFTC’s stance on recognizing ETH as a “non-security digital asset.”
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $69,437, Ether (ETH) at $3,482, and XRP at $0.62. The total market cap is at $2.62 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are:
- Core (CORE) at 105.58%
- Dogwifhat (WIF) at 80.50%
- Bitcoin Cash (BCH) at 48.69%
The top three altcoin losers of the week are:
- KuCoin Token (KCS) at -20.67%
- Fantom (FTM) at -14.00%
- Bittensor (TAO) at -11.27%
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
