Grayscale Investments, a major cryptocurrency investment firm, has submitted an application to the U.S. Securities and Exchange Commission (SEC) for approval of a spot Bitcoin exchange-traded fund (ETF). The filing is part of Grayscale’s ongoing effort to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF. This comes after Grayscale recently won a lawsuit against the SEC, which ordered the commission to explain why it rejected Grayscale’s ETF application. In addition to the Bitcoin ETF, Grayscale has also filed with the SEC to list an Ether futures ETF.
In a separate development, the New York attorney general has filed a lawsuit against cryptocurrency firms Gemini, Genesis, and Digital Currency Group (DCG), accusing them of defrauding more than 23,000 investors through the Gemini Earn investment program. The lawsuit alleges that Gemini misrepresented the program as a low-risk investment, while investigations revealed the risky nature of Genesis’ financials. The lawsuit also implicates Genesis’ former CEO and its parent company’s CEO for attempting to conceal over $1.1 billion in losses. If successful, the lawsuit seeks to ban these firms from operating in New York’s financial investment industry.
Meanwhile, Nishad Singh, the former engineering director of FTX, a now-defunct crypto exchange, has admitted to fraud charges related to defrauding users. Singh’s cooperation agreement with U.S. prosecutors could lead to a prison sentence of up to 75 years. Singh testified that he felt suicidal during FTX’s liquidity issues in 2022 and claimed that FTX CEO Bankman-Fried made purchasing decisions for Alameda Research on his own.
Binance, one of the world’s largest cryptocurrency exchanges, has announced that its Visa debit card services will be shut down in the European Economic Area starting in December. This termination follows the restoration of euro deposits and withdrawals after a month-long outage caused by a dropped payments processor. Binance is also not accepting new users in the United Kingdom due to the loss of a third-party service provider.
In a legal challenge to the U.S. Securities and Exchange Commission (SEC), Elon Musk, Mark Cuban, and other prominent figures have submitted a joint amicus brief to the Supreme Court. Their concern revolves around the SEC’s internal proceedings conducted without juries in the SEC vs. Jarkesy case. The plaintiff argues that the agency’s internal adjudication process violates his Seventh Amendment rights, as it lacks a jury and is overseen by an administrative law judge appointed by the SEC.
In the cryptocurrency market, Bitcoin’s price has reached a two-month high, surpassing $30,000 on Bitstamp exchange. However, market participants are waiting for a weekly candle close to confirm the rally’s strength. The Fantom Foundation, developer of the Fantom network, has experienced a hack resulting in the theft of over $550,000 worth of cryptocurrency. Most of the stolen funds belong to users, with the foundation’s funds largely unaffected. TrueUSD (TUSD), a stablecoin operator, has reported a potential leak of KYC and transaction history data after a third-party vendor was compromised. The impact of the attack is yet to be determined. FinSoul, a gaming project, has been accused of running an exit scam and diverting $1.6 million from investors. The alleged scam involved market manipulation and the transfer of funds to the developers.
These diverse developments in the cryptocurrency industry highlight the ongoing challenges and controversies surrounding the sector. While Grayscale seeks SEC approval for its Bitcoin ETF, legal disputes and hacks show the risks and regulatory concerns that continue to impact the market. As Bitcoin’s price reaches new highs, market participants remain cautious, awaiting confirmations of the rally’s sustainability. The industry’s overall growth and development will depend on resolving these issues and ensuring transparency and trust among investors and regulators.
