As the cryptoworld focused on the drama unfolding around FTX, United States Sen. Elizabeth Warren and Sen. Roger Marshall introduced the “Digital Asset Anti-Money Laundering Act of 2022” on Dec. 14. The seven-page bill would expand the classification of money service business (MSB), prohibit financial institutions from using technology such as digital asset mixers and regulate digital asset kiosks, otherwise known as automated teller machines (ATMs). Announcing the introduction of the bill at the Senate Banking Committee hearing on “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers,” Warren, a vocal crypto critic, said: “Senator Marshall and …

Court filings continue to shed light on the dubious relationship between FTX and Alameda Research, in which the hedge fund was afforded an ‘unfair’ trading advantage as well as unprecedented access to user holdings on the cryptocurrency exchange. The United States Commodities Futures Trading Commission filed a complaint in the Southern District Court in New York on Dec. 1, alleging a host of irregular business dealings between Sam Bankman-Fried’s cryptocurrency exchange FTX and his trading company Alameda Research. The complaint provides a raft of allegations detailing how the two companies and select insiders including Bankman-Fried violated the Commodity Exchange Act …

The arrest of the former FTX CEO Sam Bankman-Fried (SBF) by the Bahamian authorities served as a cue for anti-crypto proponents to reignite discussions around the dangers of cryptocurrencies. While some political leaders blame the crypto ecosystem for SBF’s frauds, others find no point in blaming an entire industry for one man’s action. During an FTX hearing in front of the House Financial Services Committee, Congressman Brad Sherman did not see a difference between SBF and an industry that once boasted a $2 trillion market cap, as he stated: “My fear is that we'll view Sam Bankman-Fried as just one …

The Securities Commission of Bahamas has slammed the current CEO of bankrupt crypto exchange FTX John J. Ray III for his statements regarding the ongoing investigation into FTX. In a press release sent to Cointelegraph, the Bahaman regulator didn't directly point toward the exact statements of the CEO, but addressed recent reports that suggest the Bahamas' government asked former CEO Sam Bankman-Fried to create a new multi-million token and hand over the control to them. The said report also alleged Bahamas officials tried to help Bankman-Fried regain access to key computer systems of the FTX. According to United States lawyers, …

White House press secretary, Karine Jean-Pierre, declined to answer questions from a reporter on whether United States president Joe Biden will return the $5.2 million in campaign donations previously given by FTX founder Sam Bankman-Fried. “Will the president return that donation?” Associated Press reporter Zeke Miller asked in a Dec. 13 press briefing, “does he call on all politicians who got campaign donations that may have come from customer money to return those funds?” “I'm covered here by the Hatch Act,” Jean-Pierre responded, adding she was “limited on what I can say.” ”Anything that's connected to political contributions, from here …

Australian Treasurer Jim Chalmers has revealed that the government will release a consultation paper in early 2023 as part of its token mapping initiative. The crypto sector has received greater attention from Australian regulatory and enforcement agencies since the FTX implosion, with the government emphasizing the importance of providing greater consumer protection laws as soon as possible. In a Dec. 14 statement, Treasurer Chalmers noted that the Anthony Albanese-led government is “taking action to improve the regulation of crypto service providers and ensure additional safeguards for Australians.” As part of that process, Chalmers revealed the consultation paper will cover how …

Damian Williams, United States Attorney for the Southern District of New York, said the investigation leading to charges against former FTX CEO Sam Bankman-Fried had been “very, very fast” but prosecutors were “not done” with arrests. In a press conference livestream on Dec. 13, Williams said the timing of the arrest of Bankman-Fried had been based on progress from law enforcement officials, who authorized charges on Dec. 7 and indicted the former FTX CEO on Dec. 9, leading to a warrant being executed in the Bahamas on Dec. 12. An eight-count indictment released on Dec. 13 revealed U.S. authorities alleged …

The indictment against Sam Bankman-Fried (SBF) was unsealed Dec. 13. The indictment, signed by U.S. Attorney for the Southern District of New York Damian Williams, is 14 pages long and containe eight counts. The charges listed against SBF in the indictment are: Conspiracy to commit wire fraud on customers, wire fraud on customers, conspiracy to commit wire fraud on lenders, wire fraud on lenders, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering anconspiracy to defraud the United States and violate the campaign finance laws. USA Damian Williams: Earlier this evening, Bahamian authorities arrested …

Though Sam Bankman-Fried could not attend the congressional hearing virtually due to his recent arrest in the Bahamas, United States lawmakers held no punches criticizing the former FTX CEO and business practices at the firm. As the sole witness before a hearing of the U.S. House Financial Services Committee on Dec. 13, FTX CEO John Ray shed light on many of the crypto exchange’s activities prior to his takeover as company head on Nov. 11 and what subsequent investigations had revealed. According to Ray, Alameda Research had been dependent on funds from FTX Trading — the international arm of the …

The sudden failure of FTX has left many people questioning the impact this will have on the cryptocurrency ecosystem. For instance, it remains questionable whether or not crypto hotspots will continue to flourish or if there will be a decline in innovation. While it may be too soon to fully understand the impact of the FTX collapse, industry leaders within crypto-friendly geographies believe that the FTX failure will not hamper innovation. For example, Dubai — which has been dubbed as one of the most innovative regions for crypto and blockchain development — continues to see ecosystem activity. Most recently, The …

The United States Commodity Futures Trading Commission, or CFTC, has filed a lawsuit against Sam Bankman-Fried, FTX and Alameda Research, claiming violations of the Commodity Exchange Act and demanding a jury trial. According to court records filed Dec. 13 in the Southern District of New York, the CFTC filed a complaint for injunctive and other equitable relief as well as civil monetary penalties against Bankman-Fried, FTX Trading, and Alameda Research. The complaint alleged that SBF personally directed FTC executives to set up features allowing Alameda to use the crypto exchange as a line of credit for its lenders. “Contrary to …

The Canadian Securities Administrators (CSA), the council of Canada's provincial and territorial securities regulators, on Dec. 13 issued an update to crypto trading platforms operating in the country. The CSA said that the authority has been reinforcing its approach to the supervision of crypto trading platforms by expanding existing requirements. According to the statement, all crypto trading firms operating in Canada — both local and foreign ones — have to comply with newly expanded terms, which ban them from offering margin or leverage trading services to any Canadian clients. The expanded terms also require crypto exchange services providers in Canada …