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Former crypto mogul Sam Bankman-Fried, co-founder of FTX cryptocurrency exchange, has filed an appeal against his conviction and 25-year prison sentence for orchestrating an $8 billion fraud scheme. His defense lawyer, Marc Mukasey, has lodged the appeal to the Manhattan-based 2nd U.S. Circuit Court of Appeals, aiming to challenge the conviction and sentencing imposed by U.S. District Judge Lewis Kaplan. Bankman-Fried's legal team seeks to convince the appellate court of significant errors allegedly depriving him of his legal rights during the trial. Meanwhile, FTX's co-founder and executive, Ryan Salame, is yet to be sentenced for his involvement in the fraud case. Salame's guilty plea and sentencing hearing are scheduled for May 28th, potentially adding another layer of complexity to FTX's history and addressing the concerns of victims in the bankruptcy case. Bankman-Fried's sentencing on March 28 marked a significant turn in his journey from a celebrated figure in the crypto...

Russian police have conducted raids on four large "illegal" data centers in Novosibirsk, Siberia, seizing over 3,200 crypto mining rigs. The Novosibirsk branch of the Russian power provider Rosseti reported that the operators of these mining centers have been charged with criminal offenses. The centers were found to be part of an interconnected "network" operating in different parts of the city, with an estimated theft of $2.1 million worth of electricity from the Novosibirsk grid. Police confiscated nine power transformers along with the mining devices. Novosibirsk, along with Irkutsk, has become a major hub for Russia's growing crypto mining industry. However, power providers have raised concerns about the rise in illegal crypto mining, where miners steal electricity through unauthorized connections to the power network. The recent raids mark a continuation of crackdowns on illegal mining operations in Siberia and beyond, with authorities targeting facilities and individuals...

Uniswap Labs, the entity behind Ethereum's largest decentralized exchange (DEX), has received a Wells Notice from the United States Securities and Exchange Commission (SEC), indicating the regulator's intention to pursue enforcement action. The notice, disclosed by Uniswap through a blog post, comes amidst ambiguity regarding the nature of the potential legal action, with industry observers speculating on its implications. SEC Chairman Gary Gensler's previous remarks on decentralized crypto exchanges, including Uniswap, suggest that the regulatory body may allege the sale of unregistered securities, challenging the decentralized nature of such platforms. Uniswap's Chief Legal Officer, Marvin Ammori, emphasized the company's readiness to confront the potential lawsuit, characterizing it as regulatory overreach. Following the news, Uniswap's native token, UNI, experienced a decline of approximately 16%, reflets investor uncertainty. As discussions on regulatory oversight of...

The Australian Securities and Investment Commission (ASIC) has announced its decision to appeal the federal court’s dismissal of its penalty proceedings against crypto asset service provider Finder Wallet Pty Ltd. The regulator alleges that Finder Wallet’s product, Finder Earn, was offered without the necessary license or authorization, failing to comply with disclosure requirements and design and distribution obligations. Despite Finder Wallet withdrawing its Earn product and reimbursing user funds after ASIC expressed concerns, the regulator proceeded with penalty proceedings on Dec. 15, 2022. However, the Australian Federal Court dismissed ASIC’s arguments in its March 14, 2024 ruling. ASIC contends that the primary judge erred in determining that Finder Earn was not a debenture under the Corporations Act 2001, referencing past cases where the courts agreed with its position. The appeal, set to be heard by the Full Federal Court at a later date, challenges the earlier judgment and...

HashKey Capital has been granted an expanded license by the Securities and Futures Commission (SFC) of Hong Kong, allowing the firm to offer its services to retail investors. This upgrade removes the prior restriction that limited its clientele to professional investors only. The regulatory approval signifies a potential pathway for HashKey Capital to introduce virtual asset investment products to retail investors, contingent upon obtaining necessary product approvals from the SFC. Deng Chao, CEO of HashKey Capital, highlighted the significance of this development, emphasizing the firm's leadership in the industry and the exciting opportunities it opens up for retail investors to access fund products and participate in the growing digital asset market through a trusted and regulated platform. The upgraded license is expected to catalyze HashKey's market expansion, unlocking new markets and opportunities, and enabling the firm to cultivate a wider investor base, solidifying its...

Elvira Nabiullina, the head of the Russian central bank, has stated that the mass launch of the digital ruble could take between five to seven years. This contradicts recent suggestions by Anatoly Aksakov, chairman of the State Duma Committee on the Financial Market, who indicated that the launch could begin as early as next year. Nabiullina clarified her remarks during a joint meeting of committees from the State Duma, stating that while the pilot phase for the digital ruble will be extended, no decision on mass scaling will be made before 2025. She emphasized that the timeline for widespread adoption will depend on the results of the pilot phase and the readiness of the public and businesses to embrace the digital currency. The discrepancy between Nabiullina's timeline and Aksakov's statements shows the complexity and uncertainty in the implementation of central bank digital currencies (CBDCs). While there is growing interest in CBDCs globally, their rollout requires meticulous...

In the Manhattan federal court, prosecutors likened Avraham "Avi" Eisenberg's alleged $110 million exploit of the Solana decentralized exchange Mango Markets to a scam involving a fake diamond ring. Assistant Attorney Tian Huang argued that Eisenberg's actions on Oct. 11, 2022, constituted fraud and market manipulation, inflating the price of cryptocurrency by 1,000% in 20 minutes and allegedly stealing over $110 million worth of crypto. Eisenberg has consistently denied exploiting Mango Markets, claiming his actions were legal open market actions. His lawyer, Sanford Talkin, asserted that Eisenberg risked $13 million of his own funds and executed a successful trade, which was visible to anyone due to the public nature of blockchain transactions. The outcome of Eisenberg's case could have significant implications for the crypto industry. Crypto lawyer Gabriel Shapiro suggested that while market manipulation charges may be valid, the claim that Eisenberg breached a loan agreement...

In testimony before the Senate Banking Committee, Deputy Treasury Secretary Adewale Adeyemo reiterated the department's call for increased enforcement powers to combat illicit finance, terrorism, and sanctions evasion in the crypto space. Adeyemo outlined three proposed reforms, including the introduction of secondary sanctions targeting foreign digital asset providers engaging in illicit finance. He emphasized the need for clarification that US authorities can reach extraterritorially when such entities harm national security while exploiting the financial system. The Treasury also seeks to expand existing authorities to cover the digital asset ecosystem and address jurisdictional risks posed by offshore cryptocurrency platforms. Adeyemo highlighted the overlap between these proposals and bills from the Senate Banking Committee, particularly the Digital Asset Anti-Money Laundering Act of 2022. He cited concerns over crypto's use by terrorist groups, North Korea, and in illicit...

Reports indicate that the Securities and Futures Commission of Hong Kong is poised to approve the first batch of spot Bitcoin exchange-traded funds (ETFs) in the region by April 15. Initially, the regulator planned to approve four spot Bitcoin ETFs, but at least two applications did not meet the requirements for crypto asset management in Hong Kong. Several Hong Kong-based companies and proxies from mainland China, including China Southern Fund, Harvest Fund, Jiashi Fund, Huaxia Fund, and Southern Fund, have submitted applications for spot crypto ETFs via their Hong Kong arms and are awaiting regulatory approval. Once approved, the Hong Kong Stock Exchange will require approximately two weeks to prepare for product listing and other related matters. This development follows the U.S. Securities and Exchange Commission's approval of the first batch of spot Bitcoin ETFs in the United States, which took place three months ago. Currently, the top 10 spot Bitcoin ETFs globally manage...

The Monetary Authority of Singapore (MAS) has announced amendments to the regulatory framework governing digital payment token (DPT) service providers under the Payment Services Act (PS Act). These changes covers various activities, such as custodial services, token transfers, and cross-border money transfers, within the regulatory perimeter, even if funds are not physically handled or transactions do not directly involve money entering or leaving Singapore. MAS seeks to strengthen oversight by imposing additional requirements on DPT service providers, particularly in areas related to anti-money laundering, user protection, and financial stability. The regulatory expansion will be phased in starting April 4, with affected firms required to communicate with MAS within 30 days and obtain a license within six months to maintain operational status. Entities failing to meet the stipulations will be required to cease operations immediately upon the enactment of these changes. Additionally,...

In a landmark trial opening today in New York, crypto trader Avi Eisenberg faces charges of criminal fraud and manipulation, with significant implications for the decentralized finance (DeFi) sector. The trial involves a diverse 15-person jury, reflecting the complex blend of high finance and high tech at the heart of the case. Eisenberg is accused of exploiting a trading strategy on Mango Markets, a DeFi platform on the Solana blockchain, resulting in illegal manipulation of futures contracts and obtaining $110 million in cryptocurrencies. The government's approach in treating complex crypto trading cases as straightforward frauds, challenging the notion that "code is law" in DeFi. The trial delves into philosophical questions about legality and morality in trading on permissionless blockchains, setting a precedent for applying traditional laws in innovative financial systems like DeFi. As the trial progresses, the jury's decision could shape future regulatory responses and reshape...

Avraham Eisenberg, accused of exploiting Mango Markets and stealing over $116 million in October 2022, is set to face trial this week in a New York court. The trial follows indictments by the US Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) for fraud related to market manipulation and securities law violations. The genesis of the case traces back to the massive exploit on Mango Markets in October 2022, resulting in the loss of around $117 million of user funds. Eisenberg and his team allegedly manipulated the price of the platform's native token, MNGO, using sophisticated software, draining substantial loans from the platform. Eisenberg admitted his involvement in the attack on social media, claiming the strategy was legal, while authorities viewed it as theft, leading to his arrest and impending trial. With Eisenberg's trial expected to last two weeks and a 15-member jury in place, the case holds significant implications for fraud and...