© Reuters Crypto Flipsider News – SBF Research; Spanish CBDC Project; Russia Bans BTC Miners; Coinbase Drop 50%; The EMAX claim was dismissed
Read in the digest:
- Sam Bankman-Fried is facing a market manipulation investigation by US prosecutors
- The Central Bank of Spain is opening a bid for a wholesale CBDC test project
- The Central Bank of Russia will ban miners from selling BTC in the country
- Coinbase (NASDAQ:) CEO confirms 2022 trading revenue down 50% compared to last year
- A judge dismissed the EMAX investors’ lawsuit against Kardashian and Mayweather
Sam Bankman-Fried faced a market manipulation investigation by US prosecutors
Beleaguered FTX founder Sam Bankman-Fried is reportedly facing a market manipulation investigation by US Federal Prosecutors for the failed TerraUSD and LUNA this May.
Prosecutors are investigating whether SBF manipulated the prices of two related cryptocurrencies to benefit entities it controlled, including FTX and Alameda Research.
The investigation seeks to confirm that the Bankman-Fried empire deliberately created a flood of “sell” orders on Terra’s algorithmic stablecoin, TerraUSD (now TerraClassicUSD), which caused USTC to fall below the USD.
Most of the USTC sell orders came from Bankman-Fried’s Alameda Research, according to the report. Additionally, Alameda Research has also placed a big bet on LUNC falling, an insider says.
Flipsider:
- Bankman-Fried denied any wrongdoing, saying she did not intend to commit fraud and was not involved in the “illegal use of client funds.”
Why should you care?
The investigation is part of a larger investigation 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 announced plans to launch a wholesale central bank digital currency (CBDC) project, asking financial institutions to submit proposals for the initiative.
According to BDE, the project will simulate the use of CBDC in wholesale transactions (transactions between banks and financial institutions). He also clarified that the initiative is not related to the EU’s Digital Euro study.
The initiative will focus on simulating the flow of funds, experimenting with the liquidation of financial assets and analyzing the pros and cons of applying wholesale CBDC to current processes and infrastructure.
Financial institutions wishing to join the project must meet the minimum requirements set by the bank and disclose the “economic means” they wish to undertake. The bid period for financial institutions is January 31, 2023.
Flipsider:
- According to Reserve Bank of Australia assistant governor Brad Jones, CBDCs could cause people to avoid commercial banks altogether.
Why should you care?
Through the project, BDE seeks to determine how much CBDCs can contribute to the needs and demands of a dynamic, ever-changing digital society.
The Central Bank of Russia will ban Bitcoin miners from selling BTC in the country
Although the Central Bank of Russia has legalized cryptocurrency in the country, it continues to take a negative stance against the cryptocurrency, proposing a bill to stop local Bitcoin miners from selling their BTC to local residents.
On December 7, local news media reported that the Central Bank wants Russian-based Bitcoin miners to sell their coins only to foreign cryptocurrency exchanges and non-residents of Russia.
However, Russian miners who wish to sell their coins domestically must operate through an “authorized authority”. The move will bring a “general license” to cryptocurrency production in Russia.
The news comes shortly after the Russian Finance Ministry opposed the Russian Central Bank’s proposal to impose strict licensing on cryptocurrency transactions in Russia.
Flipsider:
- As part of the new sanctions against Moscow, the European Commission will propose a ban on new investments in Russia’s mining sector.
Why should you care?
Given that many foreign cryptocurrency exchanges have banned Russia from using their platforms, the proposal could leave miners at a crossroads.
Coinbase CEO Confirms 50% Year-over-Year Trading Revenue Drop in 2022
Brian Armstrong, the CEO of Coinbase, the leading American cryptocurrency, confirmed that his company’s revenue will decrease by half or less than last year.
In an interview, Armstrong said, “Last year in 2021, we had about $7 billion in revenue and about $4 billion in positive EBITDA, and when it all comes down this year, it looks like it’s going to be about half that or less.” The estimated drop in Coinbase’s revenue comes amid falling cryptocurrency prices, declining trading volume and the ongoing ripple effects of multiple crypto company bankruptcies this year.
Coinbase has $7.8 billion in revenue in 2022, according to FactSet. However, FactSet estimates that Coinbase will generate $3.2 billion in revenue this year, down 59% from 2021.
Flipsider:
- While some crypto figures support Bankman-Fried, so does Armstrong said he didn’t believe it FTX’s problems were only the result of accounting errors.
Why should you care?
Coinbase’s poor performance is not a shock as it is highly correlated with Bitcoin and largely depends on trading fees.
A judge has dismissed EMAX Investors’ lawsuit against Kardashian and Mayweather
A federal judge in California on Wednesday dismissed a lawsuit filed by EMAX investors against reality TV star Kim Kardashian and boxing legend Floyd Mayweather Jr. for promoting the EMAX crypto project.
The suit alleges that both celebrities defrauded their fans over the EMAX token, using their large fan bases to promote the purchase of the tokens in order to “fool” potential investors.
According to U.S. District Judge Michael Fitzgerald, it was unclear whether the investors who sued had seen the promotions. He adds that the investors failed to show that the executives and promoters conspired to defraud the investors.
In June 2021, Kim Kardashian promoted EthereumMax in an Instagram post, while Mayweather wore the company’s logo on his boxing locker during the widely watched fight.
Flipsider:
- Judge Michael also told investors they could amend and refile his proposed class action.
Why should you care?
The decision comes amid the Federal Trade Commission’s (FTC) crackdown on advertising violations in the cryptocurrency industry.
See the original on DailyCoin