SEC - Page 256

Former FTX CEO and co-founder, Sam “SBF” Bankman-Fried, has entered a plea of not guilty to charges of fraud and money laundering as stated in an updated indictment, reported recently.

The proceedings, presided over by Magistrate Judge Sarah Netburn, encompassed seven counts of fraud and money laundering, along with an added campaign finance charge.

Bankman-Fried asserted his innocence in regard to all allegations.

During the court session, SBF’s legal representatives raised concerns about his medical requirements.

They highlighted that SBF relies on Adderall and adheres to a vegan diet, both of which have not been met for the past 11 days. In response, the lawyers also requested that their client be provided with a vegan diet while in custody.

Furthermore, SBF’s counsel voiced apprehensions related to his ability to prepare adequately for the trial.

READ MORE: Crypto Industry Adapts to Bear Market

They noted that Bankman-Fried has been in remand since August 11 and expressed concern that they have only been presented with impractical solutions.

Bankman-Fried appeared before the Southern District of New York courthouse on August 22, facing allegations of using customer funds for personal gains and political contributions.

While the charges for fraud and money laundering date back to December, additional campaign finance charges were included by the prosecutors earlier in the month.

This series of developments follows the decision to revoke Bankman-Fried’s bail, leading to his departure from the New York courtroom in handcuffs.

Earlier in the week, SBF sought permission from the court to spend weekdays outside of detention in order to collaborate more effectively with his legal team on his defense.

A federal judge overseeing the criminal case granted him the ability to meet with his legal representatives outside of jail for approximately seven hours, allowing some flexibility in his preparations for the upcoming trial.

Other Stories:

Binance Contemplates Legal Action Against Former Payment Provider

Ripple Labs vs. SEC: Appeals Process Sparks Debate Over Ongoing Legal Case

US Tech Giant Fires New Warning About ChatGPT

Friend.tech, a new decentralized social (DeSo) network, has recently outshone giants like Uniswap and the Bitcoin network by generating over $1 million in fees within 24 hours on August 19.

Launched in beta version on August 11, the platform lets users tokenize social connections by buying and selling “shares” of them.

A person buying another’s share can privately communicate with them, with the platform charging a 5% transaction fee and the spread representing the owner’s profit.

Built on Coinbase’s layer-2 Base, Friend.tech has witnessed significant activity. Data from DefiLlama shows that the platform generated $1.12 million in 24-hour fees and $2.8 million since launch.

Thse total project rfevenue is $818,620, and the platform has recorded over 650,000 transactions with more than 60,000 unique traders.

The mind behind Friend.tech is believed to be the pseudonymous developer Racer, known for creating TweetDAO and Stealcam, both NFT-based social media networks.

With Friend.tech, Racer aims to empower crypto influencers with broad fan bases to earn trading fee royalties and help Web3 projects connect with venture capitalists and other crypto industry leaders.

READ MORE: Ripple Labs vs. SEC: Appeals Process Sparks Debate Over Ongoing Legal Case

The success of Friend.tech has sparked discussions and analyses regarding the platform’s revenue model, associated risks, and future prospects.

Ignas, a decentralized finance researcher, observed that the current business model relies solely on trading fees and not on increasing shareholders.

He also pointed out on X (formerly Twitter) that controversial personalities might exploit the system to earn more, even using fear, uncertainty, and doubt (FUD) as a strategy to generate fees.

Talk.Markets founder Lux Moreau has also highlighted the possibility of share prices increasing significantly as they are sold, which could encourage the formation of smaller or alternative groups within the platform.

In summary, Friend.tech has emerged as a promising player in the crypto ecosystem.

Its unique approach to tokenizing social connections and engaging influential crypto personas is generating considerable interest and activity.

However, the platform’s future depends on how it navigates potential risks and evolves its business model.

Other Stories:

Binance Contemplates Legal Action Against Former Payment Provider

Crypto Industry Adapts to Bear Market

US Tech Giant Fires New Warning About ChatGPT

British Prime Minister Rishi Sunak is poised to invest £100 million ($130 million) in procuring numerous computer chips for bolstering artificial intelligence capabilities, a move that comes amidst a worldwide dearth of these chips and a fervent race to acquire enhanced computing potency.

As per a report by The Telegraph on August 20, the United Kingdom is gearing up to establish an “AI Research Resource” by mid-2024, forming a pivotal part of Sunak’s strategic blueprint to transform the nation into a thriving AI technology nucleus.

Notably, the government is actively engaging with chip manufacturers NVIDIA, Intel, and AMD to secure the necessary components.

The premier science funding entity, UK Research and Innovation, spearheading this endeavor, is reportedly in the advanced stages of finalizing an order for 5,000 cutting-edge NVIDIA graphic processing units (GPUs).

However, even though a substantial sum of $130 million has been allocated to the venture, insiders suggest that these funds might fall short of realizing Sunak’s ambitious vision for the AI hub.

This discrepancy implies that government officials might press for increased funding during an upcoming AI safety summit scheduled for November.

This development is a direct response to recent revelations indicating that several companies are grappling with the challenge of effectively deploying AI due to insufficient resources and formidable technical impediments.

In a report published in March, an impartial assessment of the nation’s AI computing capabilities revealed a concerning lag in investment when compared to counterparts in the United States and the European Union.

At that juncture, the availability of fewer than 1,000 NVIDIA chips for researchers to train AI models prompted a recommendation for the U.K. to expedite the provision of a minimum of 3,000 high-quality chips to cater to immediate requirements.

READ MORE: US Tech Giant Fires New Warning About ChatGPT

On August 16, S&P Global’s comprehensive AI trend analysis disclosed that numerous enterprises admitted their unpreparedness to accommodate AI due to a dearth of computational power.

These challenges were further compounded by data management intricacies and apprehensions about security.

Although AI is still in its nascent stages, S&P’s senior research analyst, Nick Patience, emphasized that the eventual frontrunner in this realm would be determined by their capacity to effectively manage AI workloads, a factor of paramount significance.

In conclusion, British Prime Minister Rishi Sunak’s allocation of £100 million for acquiring computer chips to bolster artificial intelligence capabilities stands as a significant move in the midst of a global chip scarcity.

The UK’s aspiration to build an AI Research Resource aligns with the broader goal of transforming the nation into a thriving AI technology hub.

While this initiative has potential, concerns persist regarding the sufficiency of funds to fully realize the intended AI ambitions, potentially prompting a call for additional funding during an impending AI safety summit.

This endeavor comes in response to prevailing challenges faced by businesses in deploying AI effectively due to resource limitations and technical complexities.

A comprehensive assessment earlier this year highlighted the UK’s need for increased investment in AI, especially in terms of computational power.

S&P Global’s recent report echoed these challenges, underlining the pivotal role of robust computing capacity in determining leadership in the burgeoning AI landscape.

Other Stories:

Crypto Influencer Files $16 Million Lawsuit Against Bitget Exchange

Bored Ape Yacht Club’s Yuga Labs to Scale Back OpenSea Support

Crypto Industry Adapts to Bear Market

Bitget, a cryptocurrency derivatives exchange headquartered in Seychelles, is making changes to its Know Your Customer (KYC) requirements in alignment with global regulatory standards.

The modifications to the KYC procedures are aimed at safeguarding user rights, fostering a secure environment for cryptocurrency trading, and adhering to regulatory suggestions provided by international watchdogs.

Commencing from September 2023, Bitget will implement adjustments to its KYC verification prerequisites.

New users registering on the platform will be mandated to complete level 1 KYC verification to unlock a range of Bitget services, encompassing cryptocurrency deposits and trading.

For users who register before September 1, the deadline for completing KYC verification is set for October 1, 2023.

During the interim period, users who haven’t finished the verification process by the end of September will still have the liberty to execute deposits, withdrawals, and trades.

Nevertheless, as of October, users who have not undergone the KYC verification procedure will experience restrictions.

They will only be able to perform withdrawals, cancel orders, redeem subscriptions, and close positions.

The ability to initiate new trading orders will be curtailed for these users.

Bitget is committed to following stringent KYC protocols to authenticate the identities of its customers for the purpose of assessing risks.

This approach aligns with the practices of mainstream financial institutions and regulated entities.

In the spectrum of cryptocurrency exchanges, Bitget is not alone in its adoption of updated KYC policies. KuCoin, for instance, implemented comparable requirements in July 2023.

READ MORE: US Tech Giant Fires New Warning About ChatGPT

The platform now mandates identity checks for all new users to comply with global Anti-Money Laundering regulations.

Failure to complete the KYC checks renders users ineligible for KuCoin’s array of services and products, which involves providing personal information, ID details, submitting ID photos, and undergoing a facial recognition process.

OKX, another prominent player, is also enforcing a KYC protocol for identity verification. Users on OKX are granted a deadline in September similar to Bitget.

This process mirrors the three-step approach seen on KuCoin. Users who neglect the verification process on OKX will lose access to services starting from September 21.

In summary, Seychelles-based cryptocurrency derivatives exchange Bitget is proactively upgrading its KYC requirements to comply with global regulations.

These changes are devised to ensure user protection, cultivate a secure trading environment, and adhere to regulatory standards.

Other Stories:

Bored Ape Yacht Club’s Yuga Labs to Scale Back OpenSea Support

Crypto Influencer Files $16 Million Lawsuit Against Bitget Exchange

Crypto Industry Adapts to Bear Market

The Worldcoin cryptocurrency initiative has encountered a fresh hurdle in its development as the Kenyan government establishes a 15-member parliamentary committee to delve into the contentious undertaking.

According to a local publication, the Kenyan government has set up a committee of 15 members, led by Gabriel Tongoyo, the Member of Parliament for Narok West, to thoroughly examine the disputed cryptocurrency project.

The parliamentary committee is tasked with conducting an investigation into the project over a span of 42 days and subsequently presenting its findings to the House committee.

Despite reaching out to MP Gabriel Tongoyo for insights into his reservations and objections against Worldcoin, Cointelegraph did not receive a response before the publication deadline.

This parliamentary scrutiny arrives approximately three weeks after Kenya suspended the operations of Worldcoin.

The suspension was enacted due to the project’s failure to comply with governmental directives to cease the practice of scanning users’ irises.

Interior Cabinet Secretary Kithure Kindiki, a pivotal figure in the suspension of Worldcoin’s activities, expressed the government’s apprehensions to the House committee.

READ MORE: Bored Ape Yacht Club’s Yuga Labs to Scale Back OpenSea Support

He emphasized that the government is deeply concerned about Worldcoin’s activities, which involve the registration of citizens and the collection of iris data. Kindiki asserts that these activities present significant security risks.

In addition to the parliamentary committee’s involvement, various regulatory bodies in Kenya have overwhelmingly rejected the Worldcoin project.

A court ruling has also led to the suspension of the project’s operations. This legal action was initiated following a lawsuit filed by the office of the data commissioner.

The court’s decision mandates the preservation of data collected by Worldcoin between April of the previous year and August 2023, pending the conclusion of the ongoing legal proceedings.

Worldcoin, a cryptocurrency endeavor centered around digital identification, introduces its native digital coin, WLD coin, which is acquired through iris scanning.

Although the project garnered nearly 2 million participants during its trial phase, its launch to the public across multiple countries brought to light several reports detailing its controversial practices.

As a result, governments in countries such as Nigeria, the United Kingdom, Argentina, Germany, and Kenya have launched investigations into the project.

Other Stories:

US Tech Giant Fires New Warning About ChatGPT

Crypto Influencer Files $16 Million Lawsuit Against Bitget Exchange

Crypto Industry Adapts to Bear Market

The Federal Republic of Somalia has taken a stance in line with several other nations by prohibiting the cryptocurrency-friendly messaging app Telegram, alongside the TikTok social media platform and the online betting site 1XBet.

The country’s Ministry of Communications and Technology (MOCT) officially declared on August 20 its decision to shut down these platforms.

Jama Hassan Khalif, the MOCT Minister, chaired a significant meeting involving the National Communications Agency and key Somali telecommunications companies to address telecommunications and internet security issues related to social media.

Khalif emphasized that the government of Somalia aims to safeguard the cultural fabric of Somali society as the pervasive influence of telecommunications and internet devices has begun to adversely impact lifestyles and promote detrimental habits.

The MOCT statement elaborated on the decision, stating, “It was considered important to shut down TikTok, Telegram and 1XBet gambling equipment, which had an impact on Somali youth, causing some of them to die.”

The move is also seen as a step to curb the proliferation of inappropriate content and propaganda.

Khalif’s assertion that these platforms are exploited by “terrorists and immoral groups” to disseminate disturbing visuals and misinformation to the public underscores the urgency of the decision.

He further directed Telegram and other applications to suspend their operations within Somalia by August 24. Non-compliance with this directive, he warned, would lead to legal consequences.

READ MORE: US Tech Giant Fires New Warning About ChatGPT

The ban, announced by the Ministry of Telecommunications and Technology, is designed to counter and prevent indecent activities, harmful contents, and the spread of extremist propaganda.

The motivation behind this move remains focused on protecting the well-being of the nation’s youth and preserving cultural values.

Although the ramifications of Somalia’s ban on platforms like Telegram for its cryptocurrency adoption remain unclear, the country’s stance does not appear to directly affect the use of cryptocurrencies like Bitcoin (BTC), which is not prohibited within Somalia.

However, the debate over the association of cryptocurrencies with potential terrorism financing risks remains ongoing in global jurisdictions.

This development comes on the heels of Iraq’s decision to lift the ban on Telegram in mid-August after initially imposing it due to concerns about personal data security.

Similarly, in Brazil, Telegram faced a temporary suspension in April due to investigations into the platform’s use by neo-Nazi groups for inciting violent actions.

The platform faced substantial fines for non-cooperation in the investigation of such activities.

Other Stories:

Crypto Industry Adapts to Bear Market

Bored Ape Yacht Club’s Yuga Labs to Scale Back OpenSea Support

Crypto Influencer Files $16 Million Lawsuit Against Bitget Exchange

Customers using Binance, a prominent cryptocurrency exchange, are reportedly encountering problems with fiat withdrawals in Europe due to complications related to Single Euro Payments Area (SEPA) transfers.

As of August 20, Binance’s customer support revealed in a now-deleted post on X (formerly Twitter) that the exchange had temporarily suspended euro withdrawals and deposits through SEPA.

Binance cited the discontinuation of support from its payment provider as the reason behind this suspension.

Binance acknowledged the inconvenience caused by this situation and assured users that efforts were underway to resolve the issue promptly.

The incident arose when a Binance user in Europe reported being unable to withdraw a substantial amount of Euros they had purchased on the platform.

The user’s complaint included frustration over not being able to access their funds due to the closure of their Paysafe account.

The user remarked that such actions were more characteristic of untrustworthy exchanges rather than Binance.

This occurrence follows Binance’s earlier announcement to its users that its current euro banking partner, Paysafe Payment Solutions, would no longer support the exchange.

READ MORE: Binance Contemplates Legal Action Against Former Payment Provider

Binance had informed users that they needed to update their banking details and potentially agree to new terms to continue using SEPA services.

However, Binance clarified that the recent customer support message on X had been sent erroneously. The SEPA deposit and withdrawal service would continue until September 25, as initially communicated.

Approaching the September 25 deadline, Binance mentioned that some users might be subject to additional information requests due to routine compliance checks, possibly leading to early account closures.

The exchange assured users that alternative solutions would be in place before the SEPA service’s termination.

This is not the first instance of withdrawal-related difficulties for Binance in Europe. In a similar incident in May, Binance halted Bitcoin withdrawals due to a backlog of pending transactions.

This pause came after the exchange faced its inaugural withdrawal outage during a congested Bitcoin mempool period, which led to numerous transactions being stuck on the blockchain.

Other Stories:

Ripple Labs vs. SEC: Appeals Process Sparks Debate Over Ongoing Legal Case

US Tech Giant Fires New Warning About ChatGPT

Crypto Industry Adapts to Bear Market

FTX founder Sam Bankman-Fried, whose bail was recently revoked by a federal judge, is now seeking permission to spend five weekdays outside of detention to collaborate with his legal team in preparing his defense case.

His legal representatives conveyed that he was facing challenges in thoroughly reviewing extensive case-related documents while confined in the Metropolitan Detention Center in Brooklyn, New York.

Christian Everdell, SBF’s attorney, highlighted the substantial document production delays by the government, including three-quarters of a million pages of Slack communications.

Everdell asserted that allowing SBF access to his legal team and an internet-enabled laptop within the courthouse premises would expedite proceedings, considering his fraud trial scheduled for October.

SBF is contesting allegations of orchestrating an elaborate fraud scheme involving unauthorized access to billions of dollars from FTX customer funds for personal gain.

Prosecutors argued that for SBF to introduce a defense centered around advice received, he must promptly provide information about its origin; failure to do so might bar this defense during the trial.

While prosecutors mentioned their ability to provide information on hard drives, limitations prevent all data from being stored on laptops or drives.

Despite prison authorities rejecting a plan to relocate SBF for laptop access, a judge’s decision on his requests is still pending.

READ MORE: Tether Discontinues Bitcoin Omni Layer Version Due to Waning Interest

In the realm of Decentralized Finance (DeFi), Curve Finance pledged to reimburse victims of a recent hack amounting to $62 million in losses.

Investigations have yielded progress, with approximately 79% of the funds recovered.

The platform will assess each affected user for reimbursement to ensure equitable distribution of resources.

Additionally, Zunami Protocol faced an attack on its stablecoin pools on Curve Finance, resulting in a loss estimated at $2.1 million.

\However, the DeFi landscape also witnessed positive developments, including ConsenSys’ launch of the Ethereum scaling rollup Linea, bridging over $26 million in ETH and offering enhanced throughput for DApps.

SpiritSwap, a Fantom-based DEX, was rescued from shutdown via a community resolution transferring the project to Power, avoiding closure due to treasury funds being stuck on the Multichain protocol.

Despite market fluctuations, DeFi’s total value locked in protocols surged to $49.8 billion, marking a five-month high.

Other Stories:

Bitcoin Hovers Near 2-Month Lows Amidst Extensive Liquidations and Market Uncertainty

Shiba Inu’s Shibarium Network Restarts Block Production After Temporary Pause

Former US President Donald Trump’s Ethereum Wallet Surges to $2.8 Million