Key Takeaways

  • Sam Bankman-Fried, former CEO of FTX, sentenced to 25 years in prison.
  • Fidelity files for a spot Ether ETF with staking options.
  • Coinbase’s motion to dismiss SEC lawsuit denied by U.S. court.

Sam Bankman-Fried Sentenced to 25 Years in Prison

Former FTX CEO Sam “SBF” Bankman-Fried has been sentenced to 25 years in prison following a federal court hearing. On March 28, Judge Lewis Kaplan of the United States District Court for the Southern District of New York handed down the sentence, which includes 240 months and an additional 60 months for seven felony charges. The charges include witness tampering and perjury related to FTX user funds. SBF is the first individual associated with FTX and Alameda Research to receive a prison sentence.

Fidelity Files for Spot Ether ETF with Staking

On March 27, Fidelity submitted an S-1 application to the United States Securities and Exchange Commission (SEC) to create a spot Ether exchange-traded fund (ETF). The ETF will allow Fidelity to stake part of the ETH it holds. Fidelity Digital Asset Services, affiliated with sponsor FD Funds Management, will act as the custodian of the trust’s ETH. The SEC has delayed the approval deadline for other ETH ETFs to May 23, with eight applicants currently awaiting a decision.

SEC Lawsuit Against Coinbase Moves Forward

A U.S. court has denied Coinbase’s motion to dismiss the SEC’s case against the exchange. U.S. District Judge Katherine Failla’s decision allows the SEC to continue its lawsuit, which alleges that Coinbase violated federal securities laws by listing 13 tokens considered securities. The SEC initially filed the lawsuit in June 2023.

Ripple Faces $2 Billion Penalty Request from SEC

Ripple Labs’ chief legal officer, Stuart Alderoty, revealed that the SEC has requested a $2-billion penalty against the blockchain firm. The lawsuit, filed in December 2020, alleges that Ripple raised $1.3 billion through unregistered securities sales of XRP tokens. Ripple plans to respond to the SEC’s request in April.

QuadrigaCX Co-Founder’s Assets Seized

The director of civil forfeiture in British Columbia has issued an unexplained wealth order to confiscate cash, 45 gold bars, and luxury items found in a safe deposit box linked to a QuadrigaCX co-founder. The assets are allegedly proceeds of criminal activities. QuadrigaCX became insolvent in February 2019 after co-founder Gerald Cotten died, taking the private keys to the exchange’s offline storage systems with him.

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 stands at $2.62 trillion.

Top Gainers:

  • Core (CORE): 105.58%
  • Dogwifhat (WIF): 80.50%
  • Bitcoin Cash (BCH): 48.69%

Top Losers:

  • KuCoin Token (KCS): -20.67%
  • Fantom (FTM): -14.00%
  • Bittensor (TAO): -11.27%

Memorable Quotations

“When not lying, [Sam Bankman-Fried] was evasive, hair splitting, trying to get the prosecutors to rephrase questions for him. I’ve been doing this job for close for 30 years. I’ve never seen a performance like that.”

— Lewis Kaplan, senior judge of the U.S. District Court for the Southern District of New York

“Yes, over time, we continue to see greater adoption of nonprofits accepting cryptocurrency donations. The market has become too big to ignore.”

— Alex Wilson, co-founder of The Giving Block

“I’m very bullish on the long-term viability of Bitcoin.”

— Larry Fink, CEO of BlackRock

Prediction of the Week

Bitcoin Gears Up for a ‘Massive’ Short Squeeze

As Bitcoin hovers around the $70,000 mark, analysts speculate that short-sellers are under pressure due to diminishing downtrends and quicker-moving uptrends. This could drive Bitcoin’s price to $80,000. According to The Kobeissi Letter, the margin between institutional long positions and hedge fund short positions is at a record high. If Bitcoin 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

KuCoin and Founders Charged with AML Violations

The U.S. Department of Justice (DOJ) has unsealed an indictment against KuCoin and two of its founders for operating an unlicensed money transmitting business and violating the Bank Secrecy Act. The DOJ’s criminal charges coincide with a civil enforcement case from the U.S. Commodity Futures Trading Commission (CFTC), which charged KuCoin with multiple violations of the Commodity Exchange Act.

Munchables Hacker Returns $62.8M Ether

The Ethereum-based NFT game Munchables reported a hack on March 26 that drained over 17,400 ETH. The hacker, known as “Werewolves0943,” returned $62.8 million worth of Ether without demanding a ransom.

Lawmakers Demand SEC Clarify Position on Prometheum’s Ether Plans

U.S. lawmakers are urging SEC Chair Gary Gensler to address Prometheum’s intention to offer institutional custody services for Ether. Lawmakers argue that this announcement conflicts with the CFTC’s stance on recognizing ETH as a “non-security digital asset.”

Top Magazine Pieces of the Week

  • 5 dangers to beware when apeing into Solana memecoins
  • Creating ‘good’ AGI that won’t kill us all: Crypto’s Artificial Superintelligence Alliance
  • ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

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