Hodder Law Weekly Crypto Newsletter - November 30, 2022
I hope you are all having a great week! The price of Bitcoin as of Wednesday, November 30 at 2:55 p.m. EST is $17,065.
Things are moving at lightspeed this week in the crypto world as BlockFi faces bankruptcy. The SEC is in line as the company's third largest creditor as a result of the $100m fine earlier this year.
BlockFi Bankruptcy. I appeared on Coindesk.tv yesterday to discuss the BlockFi bankruptcy. The Securities and Exchange Commission may get paid ahead of the retail investors they are here to protect. #InvestorProtection
Sam Bankman-Fried [finally] Called to FTX Hearing by Texas Securities Regulator.
FTX Capital Markets, LLC was registered as a dealer in Texas and a hearing is set for February 2, 2023. The regulator has questions about FTX’s yield-bearing products, which it suspects were unregistered securities. #Don'tMessWithTexas
BlockFi is 'the antithesis of FTX'.
BlockFi is seeking a court ruling allowing customers in their wallet program to withdraw their funds during the bankruptcy proceedings. The wallet program was created as BlockFi’s response to SEC regulatory investigations and record fines doled out against BlockFi earlier this year. #OperatingCash
Bankrupt BlockFi sues SBF for Robinhood shares.
After Alameda defaulted on a loan repayment to BlockFi, SBF pledged his 7.6% ownership of Robinhood shares to BlockFi, but failed to deliver them. It's alleged SBF tried to resell the same shares to other buyers through Signal in the days leading up to the Bankruptcy. #DoubleSpend
Tom Emmer criticizes Gary Gensler.
Tom Emmer, a Republican Congressman from Minnesota has concerns over Gary Gensler’s “indiscriminate and inconsistent approach to oversight of the crypto community.” Emmer appeared on Fox Business stating FTX was not a failure of crypto rather it was a failure of CeFi. #Ponzi
CME Head says he bribed CTFC official.
In either a monumental slip-up or in a lucid moment of truth, Terry Duff, CME Group boss appeared on Fox News. Duffy said, “I don’t know where Gary Gensler was, but my regulator at the CFTC I bribed, I asked them, why in the world are you invoking the Commodity Exchange Act?” #FreudianSlip
US State regulators investigating Genesis Global Capital.
State regulators including the Alabama Securities Commission suspect Genesis may be in violation of securities laws following a report from Barron’s. ASC Director Joseph Borg said several other states are involved in the investigations. #StatesStepUp
Binance deploys $1 billion to Recovery Fund.
In an effort to prevent further decline in the crypto industry, Binance has stated they will increase their industry recovery fund to $2 billion “if the need arises.” So far nearly 150 companies have applied for support from the fund. #SAFU
What Are 'Fully Backed' Reserves?
When crypto firms act like traditional banks and lend out deposits in hopes of making gains, all too often disaster strikes. Dealing with crypto firms that have ‘fully backed reserves’ eliminates the trading risks, but there are still hacking risks. #ColdStorage.
Top Five Crypto Tax Questions, Answered.
With tax filing day coming up on April 18, 2023, and this year there are 87,000 new agents, the best defense is a good offense. Coindesk talked to tax experts for this article and video on answers to the top five questions related to taxes on crypto. #Death&Taxes
"The financial world has always invited the sleight-of-hand artist; money is choreographed in numbers, and numbers are so easy to push around." -Adam Smith
Make it a great week!