- UK regulators push for clarity and transparency in crypto proposals
- Charlie Munger calls for a US ban on cryptocurrency
- Judge says SBF isn’t allowed to use encrypted messaging apps
- Celsius, Nexo, and Mango Markets drama
Avraham Eisenberg waives bail
After draining $116 million from Mango Markets, crypto trader Avraham Eisenberg has waived bail and will stay in jail until February 14. Eisenberg, whose “highly profitable trading strategy” became the thing of memes in late 2022, is being sued by Mango Markets for $47 million in funds he failed to return, CoinDesk reports. The crypto trader also faces three criminal offences including commodities manipulation, commodities fraud, and wire fraud. He was arrested in Puerto Rico in December.
UK regulation push
The UK’s HM Treasury this week said it will “regulate a broad suite of crypto asset activities, consistent with its approach to traditional finance.” In an effort to prevent the kinds of behind-closed-doors activities that brought FTX to its knees in autumn of last year, the new proposed regulations place increased emphasis on transparency. The proposals also establish limitations on how crypto companies can promote their products and services, while dialling back initial planned restrictions that would have resulted in “an effective ban” of self-approved crypto advertising. This reflects a tug-of-war between the Treasury and the crypto-critical Finance Conduct Authority, as the UK — led by crypto-friendly Prime Minister Rishi Sunak — attempts to make the UK a crypto hub.
Munger Calls for Crypto Ban
Charlie Munger, the 94 year-old business partner of billionaire Warren Buffett, called for a ban on crypto in a Wall Street Journal op-ed. Munger formerly stated that China had the right idea in banning cryptocurrencies entirely, an event which rocked the crypto market back in 2021. Perhaps that Munger’s article cites a British trading ban from the 1700s gives some impression of his aptitude for modern technology — though his company’s massive Apple bet suggests otherwise.
Sam banned from the apps
It looks like Sam Bankman-Fried will have to find a different way to reach out to his current and former employees, as US District Judge Lewis Kaplan ruled on Wednesday to limit his messaging app use. The former FTX CEO was reprimanded when a series of messages to a former employee were leaked. Bankman-Fried implored his colleague to, among other things, “use each other as resources … or at least vet things with each other.” SBF oversaw the downfall of FTX which cost users billions of dollars, and is currently out on $250 million bail for defrauding investors.
A report shedding light on the Celsius bankruptcy was released on Tuesday, unveiling more about the collapse of the crypto lender. The report alleges that founder and CEO Alex Mashinsky extracted $68.7 million from investors using an artificially propped up token price. He and other employees are alleged to have made off with customer funds while shattered firms such as Alameda and Three Arrows Capital were allowed to exceed credit limits. This report comes in the wake of insolvency issues beginning in April of 2022 and exacerbated by the Terra/Luna collapse in May. Celsius tweeted on January 31st that a process is now underway for users to make withdrawals, which have been halted since June.
Celsius provided an update on the upcoming withdrawal process for certain assets in certain Custody accounts. https://t.co/Q4oxRHeg4E— Celsius (@CelsiusNetwork) February 1, 2023
Nexo pays Idaho
UK based exchange, Nexo, was issued a consent order Thursday by the US state of Idaho as part of a multistate securities settlement, reports a local news provider. Only weeks ago Nexo reached a resolution with regulators and agreed to pay $45 million in damages for failing to comply with state securities regulations. The settlement is but one of the problems faced by the exchange in recent weeks. In January, Nexo’s Bulgaria office was raided by Bulgarian and international authorities, reflecting increased cooperation between Western regulatory agencies in their efforts to combat crypto violations.
From around the web ...
“Apple had a problem with crypto from day one. They thought it was a Ponzi scheme.” - Decrypt
Cathie Wood is sticking with her $1 million crypto call - Bloomberg