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FTT Surges 50% On FTX Creditors’ Claims Settlement And Billions In Compensation: How High Can It Rise?

In a significant development, defunct cryptocurrency exchange FTX has unveiled a reorganization plan to reimburse almost all of its customers. 

The announcement has sparked a substantial surge in the exchange’s native token, FTT, which recorded an uptrend of 52% over the past seven days, reaching a monthly high of $2.29 during Wednesday’s early trading session.

FTX Unveils Debt Repayment Strategy

FTX estimates its outstanding debts to creditors to be approximately $11.2 billion, as revealed in the reorganization plan published late Tuesday. The company has disclosed that it possesses between $14.5 billion and $16.3 billion, which it intends to distribute among the creditors.

Under the proposed plan, customers with $50,000 or less claims will receive approximately 118% of the allowed claim amount. This compensation is slated to be disbursed to around 98% of the creditors, relieving FTX customers who have experienced locked funds since the exchange filed for bankruptcy protection in November 2022. 

FTX stated in a press release on Wednesday that the company could not utilize the appreciation of the missing tokens during the Chapter 11 cases. Instead, FTX had to identify other recoverable sources of value to repay creditors. 

Following the departure of founder Sam Bankman-Fried, FTX appointed John Ray III as CEO. Ray, speaking on the matter in November 2022, expressed his astonishment at the “complete failure of corporate controls and such a complete absence of trustworthy financial information” witnessed at FTX. Ray further stated in the press release on Wednesday: 

We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors. 

FTX’s founder, Sam Bankman-Fried, faced legal consequences, being convicted on seven criminal counts, including charges related to embezzling billions of dollars from FTX’s customers. Bankman-Fried was subsequently sentenced to 25 years in prison.

FTT Bulls Eyeing $2.55 For Potential Breakout Continuation

As of the latest update, the price of FTT has corrected to $2.050 after reaching its monthly high. This breakout occurred after consolidation between the $1.17 and $1.48 levels.

At the current price level, FTT faces a significant resistance at $2.169, which has led to the ongoing correction. If FTT sustains its bullish momentum, the next resistance level to watch is $2.55 in the token’s daily chart. 

A successful breakthrough of this level could potentially lead to a retest of the $3 mark, which has not been revisited since January.

On the other hand, if the price experiences a further correction, FTT bulls should closely monitor the $1.95 and $1.765 levels, as they serve as crucial support levels. It is essential to prevent a loss of the gains achieved over the past month, which amounts to an 18% increase during this period.

FTX

Featured image from Shutterstock, chart from TradingView.com

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BREAKING: Sam Bankman-Fried Sentenced To 25 Years In Prison

In a highly anticipated courtroom verdict, Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has been sentenced to 25 years in prison for defrauding users. US District Judge Lewis Kaplan delivered the judgment during a Lower Manhattan federal courtroom hearing.

FTX Founder Sam Bankman-Fried Sentenced

Judge Kaplan sternly criticized the defense’s argument, labeling it as “misleading, logically flawed, and speculative.” As reported by our sister site, Bitcoinist, Kaplan highlighted Bankman-Fried’s obstruction of justice and witness tampering during his defense, which were significant factors considered in the sentencing decision.

Bankman-Fried expressed remorse in a statement, acknowledging that his series of “selfish” decisions as the leader of FTX had led to the exchange’s downfall. He admitted to having “thrown it all away” and expressed regret that continues to haunt him daily.

Prosecutors had initially sought a maximum sentence of 50 years, while Bankman-Fried’s legal team argued for a maximum of 6 years. In November, Bankman-Fried was found guilty on seven criminal counts, and he has since been held at the Metropolitan Detention Center in Brooklyn.

Life Plans Shattered

Late Tuesday, prosecutors submitted documents containing testimonies from victims, shedding light on the impact of Bankman-Fried’s actions. One victim, whose name was redacted, wrote a letter dated March 15, describing the destruction of their entire life and the emotional toll it had taken on their family. 

They emphasized that they had entrusted their funds to FTX as a custodian, not consenting to the risks Bankman-Fried had taken with their money. The victim shared the suffering that had led to depression and even thoughts of suicide.

During the trial, prosecutors revealed that Bankman-Fried had diverted funds from FTX customers, amounting to as much as $8 billion. These funds were allegedly used to finance a wide range of external interests, including political initiatives, speculative investments, and funding the lifestyles of FTX executives.

Sam Bankman-Fried

Featured image from Shutterstock, chart from TradingView.com 

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BREAKING: Sam Bankman-Fried Sentenced To 25 Years In Prison

In a highly anticipated courtroom verdict, Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has been sentenced to 25 years in prison for defrauding users. US District Judge Lewis Kaplan delivered the judgment during a Lower Manhattan federal courtroom hearing.

FTX Founder Sam Bankman-Fried Sentenced

Judge Kaplan sternly criticized the defense’s argument, labeling it as “misleading, logically flawed, and speculative.” As reported by our sister site, Bitcoinist, Kaplan highlighted Bankman-Fried’s obstruction of justice and witness tampering during his defense, which were significant factors considered in the sentencing decision.

Bankman-Fried expressed remorse in a statement, acknowledging that his series of “selfish” decisions as the leader of FTX had led to the exchange’s downfall. He admitted to having “thrown it all away” and expressed regret that continues to haunt him daily.

Prosecutors had initially sought a maximum sentence of 50 years, while Bankman-Fried’s legal team argued for a maximum of 6 years. In November, Bankman-Fried was found guilty on seven criminal counts, and he has since been held at the Metropolitan Detention Center in Brooklyn.

Life Plans Shattered

Late Tuesday, prosecutors submitted documents containing testimonies from victims, shedding light on the impact of Bankman-Fried’s actions. One victim, whose name was redacted, wrote a letter dated March 15, describing the destruction of their entire life and the emotional toll it had taken on their family. 

They emphasized that they had entrusted their funds to FTX as a custodian, not consenting to the risks Bankman-Fried had taken with their money. The victim shared the suffering that had led to depression and even thoughts of suicide.

During the trial, prosecutors revealed that Bankman-Fried had diverted funds from FTX customers, amounting to as much as $8 billion. These funds were allegedly used to finance a wide range of external interests, including political initiatives, speculative investments, and funding the lifestyles of FTX executives.

Sam Bankman-Fried

Featured image from Shutterstock, chart from TradingView.com 

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FTX And IRS Lock Horns Over $24 Billion Tax Bill, FTT’s Key Support Wavers

In a striking turn of events, the Internal Revenue Service (IRS) in the United States has presented a staggering tax bill of $24 billion against the bankrupt cryptocurrency exchange FTX. 

FTX Challenges IRS’s $24 Billion Tax Bill

According to court filings and FTX’s response to the IRS’s claims, several key arguments challenge the basis of the tax bill. Firstly, FTX highlights that its operations spanned three years, never distributing dividends or earnings. 

Secondly, the exchange’s defense attorneys claim that the company incurred substantial losses rather than generating income that could support the IRS’s “exorbitant” tax claim. 

Thirdly, the lawyers argue that FTX is currently in liquidation and is not engaged in any ongoing business activities apart from those required for the liquidation process. 

Finally, the company emphasizes that the recovery sought by the IRS would ultimately come at the expense of FTX’s victims, as the funds would be redirected away from their rightful recipients. 

As the court hearing approaches, FTX asserts that proceeding with a court-supervised estimation process would demonstrate the company’s significant losses during its operational period, rendering the IRS’s claim “baseless.” 

FTX emphasizes that any forced payment would harm the victims of the FTX fraud, many of whom are already grappling with “profound losses.”

FTX’s administrators have managed to recover approximately $7 billion in assets, including $3.4 billion in cryptocurrencies. These figures underscore the complex financial landscape surrounding the IRS’s claim against FTX.

As the courtroom showdown ensues, the case outcome will undoubtedly have significant implications for the future of crypto taxation and the recovery prospects of FTX’s creditors. 

FTT’s Bullish Trend Holds Strong

As the cryptocurrency market experiences a significant correction following a bullish surge led by Bitcoin (BTC), FTX’s native token, FTT, has seen a decline of over 5% in the past 24 hours, adding to the company’s legal concerns.

After a three-month accumulation phase that kept FTT trading in a range between $0.9 and $1.2 from September to the beginning of November, the token witnessed an impressive surge in the last month, reaching its highest price of the year at $6.042, a level not seen since November 2022.

FTX

However, the token has retraced to its current price mark of $4.8, with the next support level at $4.45 in case of further downward movement.

On a positive note, FTT is trading above key moving averages, including the 200-day and 50-day MA, which provide support and indicate the potential for further upward price action.

Furthermore, since the beginning of November, FTT has consistently recorded higher highs and higher lows, forming an uptrend pattern. This trend has been observed three times, with the token experiencing an uptrend, followed by a pullback for a support test, and then a continuation to reach new highs.

Assuming this trend continues and the legal developments do not have a significant impact on the price of the token, FTT may be poised for a significant rise in the coming months, given the remarkable uptrend pattern seen on the daily chart.

Featured image from Shutterstock, chart from TradingView.com 

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Disgraced FTX Co-Founder Placed On Suicide Watch In Prison, Reveals Former Inmate

Sam Bankman-Fried, the co-founder of the FTX crypto exchange, who was recently found guilty of multiple counts of criminal fraud, reportedly faced a harrowing experience while incarcerated. 

According to a former mobster turned federal informant, Gene Borrello, who shared a prison cell with Bankman-Fried, the disgraced crypto executive was placed on suicide watch and endured challenging conditions during his time at Brooklyn Metropolitan Detention Center (MDC) while awaiting sentencing next year.

FTX Co-Founder Subjected To Extortion

The details emerged during an interview with crypto blogger Tiffany Fong, where Borrello disclosed the troubling circumstances surrounding Bankman-Fried’s imprisonment. 

The former detainee recounted how Bankman-Fried was subjected to suicide watch, extortion attempts, and even periods of self-neglect, including refusing to eat or shower for several days.

In an attempt to protect Bankman-Fried from potential harassment or extortion, authorities segregated him from gang members within the prison facility. However, despite these precautions, Borrello’s intervention reportedly foiled an extortion plot against the crypto mogul.

Borrello further revealed that he prevented the extortionists from coercing Bankman-Fried into sharing a bunk with them, placing the FTX co-founder in a solitary wing. Additionally, Bankman-Fried’s parents reportedly requested his transfer to the solitary unit to ensure his safety.

Drastic Change In Prison?

Describing the physical and emotional toll on Bankman-Fried, Borrello highlighted the crypto executive’s frail appearance, likening it to that of an elderly man. Borrello stated on the matter:

He has the body of an 80-year-old man. He has, like, no shape to him. When he talks to you, he puts his head down; he’s very timid, he talks very nervously. 

Borrello also noted Bankman-Fried’s timid demeanor, with the co-founder displaying signs of nervousness during interactions. 

In one conversation, Borrello confronted Bankman-Fried, stating that he had never been in a physical altercation before and questioned his association with gang members.

As reported by our sister site, Bitcoinist, Bankman-Fried received unique treatment in prison, where he allegedly received special privileges for sharing cryptocurrency-related information with prison guards and fellow inmates.

However, Borrello’s account offers a contrasting perspective, emphasizing the challenges and vulnerabilities the disgraced executive faced behind bars.

As Bankman-Fried’s sentencing approaches, his time in prison, including allegations of bullying and the ultimate impact on his legal proceedings, continues to draw attention. 

The revelations from Borrello’s interview provide a rare glimpse into the world of the disgraced FTX co-founder, and it remains to be seen what other revelations may be made in prison for Bankman-Fried as his sentencing trial looms in 2024.

FTX

At present, the native token of FTX, FTT, is trading at $4.0997, indicating a decrease of 2.8% in the past 24 hours. However, it is noteworthy that the token has experienced a substantial surge of 216% year to date.

Featured image from Shutterstock, a chart from TradingView.com 

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From Crypto To Catch: Disgraced FTX Founder Turns To Trading Fish In Prison

According to a report by Business Insider, Sam Bankman-Fried (SBF), co-founder and former CEO of FTX, has adapted to the economic system of New York’s Metropolitan Detention Center (MDC), where he is currently awaiting sentencing on multiple felony counts. 

The disgraced crypto-billionaire has reportedly been bartering, using food as currency in exchange for various services within the prison.

Former FTX CEO SBF Trades Fish For Services

Per the report, mackerel, a fish commonly referred to as “macks” among inmates, emerged as the currency of choice in federal prisons after cigarettes were banned. The fish’s popularity stems from its stability and value within the prison economy. 

Formerly incarcerated individuals like attorney Larry Levin have accepted mackerel as payment from fellow prisoners, using it to acquire services such as beard trims and shoe shines. 

The demand for mackerel became so significant that suppliers, including Global Source Marketing, witnessed increased sales, according to Business Insider.

In a prison environment where inmates lack access to traditional or digital currency, products with steady value, such as certain food items and stamps, serve as substitutes for money. 

Mackerel and other stable commodities like tuna become a means of exchange, with their value pegged to the dollar. This economic logic allows inmates to engage in various transactions while maintaining a semblance of a barter system.

The use of fish as a medium of exchange in federal prisons has been widespread since 2004, following the cigarette ban. 

Sam Bankman-Fried faces sentencing on March 28, 2024, for charges that include wire fraud and conspiracy to commit money laundering, with a potential prison term of up to 110 years. Additionally, SBF is set to stand trial for separate counts related to political bribery.

 FTT Surges with Impressive Gains

FTT, the native token of the FTX cryptocurrency exchange, has seen a remarkable surge in value in recent weeks. With substantial gains across various timeframes and an impressive market capitalization of 1.5 billion, FTT has cemented its position among the top 50 tokens in the crypto market. 

Over the past 24 hours, FTT has experienced a significant increase of 21%, showcasing the token’s upward momentum. This short-term surge is complemented by a strong performance over the past week, with a notable rise of 26%. 

FTX

However, the real standout lies in FTT’s gains over the past 14 and 30 days. Within the last two weeks, FTT has skyrocketed by an impressive 100%, while the 30-day timeframe has seen an astounding surge of 315%. 

These gains highlight the growing demand and investor interest in FTT as rumors of a possible reboot of the exchange circulate within the crypto community.

Featured image from Bloomberg, chart from TradingView.com 

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FTX’s FTT Token Leads Market Gains With 55% Rally, What’s Driving It?

The utility token of the defunct crypto exchange FTX, FTT is one of the top gainers in the last few days, rising 55% in just 48 hours alone. This has led to speculations as to what may be driving the token’s rally. One of them relates to a recent event in the crypto industry. 

FTT Token’s Recent Rally Propelled By Binance News

In a post on its X (formerly Twitter) platform, the market intelligence platform Santiment noted that the second rally for FTT came after the Binance news. The world’s largest crypto exchange and its former CEO Changpeng “CZ” Zhao had both pleaded to criminal charges and agreed to a settlement of over $4 billion in fines.

As to the correlation between both events, Binance and FTX have always been closely knitted in several regards. For one, CZ, in particular, has sometimes been credited for being responsible for FTX’s collapse. Prior to the bank run on FTX, the former executive had made a tweet about his company liquidating their FTT holdings. 

As such, it is believed that Binance, going through this difficult phase, comes off as bullish for the FTT token because of the animosity that the FTX and Binance ecosystem share. Interestingly, while FTT has continued to rally, Binance’s BNB has suffered an inverse fate. BNB is down by over 6% in the last seven days, according to data from CoinMarketCap. 

Sam Bankman-Fried’s Conviction Also Contributed

It is worth mentioning that the FTT rally didn’t just kickstart on the back of the Binance news. FTT’s market value is reported to be about 255% up against Bitcoin in the past 3 weeks. This resurgence began just after the 10 largest wallets began accumulating, with $12.8 million worth of FTT bought by these whales since November 3.

Interestingly, November 3 happens to be a day after FTX’s former CEO Sam Bankman-Fried (SBF), was convicted. The FTX founder was convicted of all seven charges leveled against him. Going by this, it would seem that his conviction was conceived as bullish for these whales who decided to double down on their FTT holdings. 

Another factor that might also be contributing to the token’s resurgence is the talks about FTX making a comeback. The defunct crypto exchange is reported to have suitors who are interested in rebooting it. The Chair of the Securities and Exchange Commission (SEC), Gary Gensler, had also noted that it was a possibility as far as the rules and guidelines are abided by.

At the time of writing, FTT is currently trading at around $4.50, up over 21% in the last 24 hours and up by over 336% in the past month, according to data from CoinMarketCap.

FTX FTT Token price chart from Tradingview.com

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FTX Ramps Up Restitution Efforts, Subpoenas AI Firm CAIS Over $6.5M Investment

Bankrupt crypto exchange FTX, led by newly appointed CEO John Ray III, has embarked on an intensive legal campaign to regain control and recover assets in its pursuit of financial restitution. 

As founder Sam Bankman-Fried awaits possible conviction and faces a staggering 114 years in prison if found guilty, FTX’s asset recovery plan continues under Ray’s leadership. 

FTX Bankruptcy Battle Escalates

In a recent filing with the US Bankruptcy Court for the District of Delaware, FTX issued a subpoena to the artificial intelligence (AI) firm Center for AI Safety (CAIS), demanding accounting records and information regarding payments, agreements, and contracts related to the $6.5 million investment.

The motion, filed on behalf of the debtors who sought Chapter 11 bankruptcy protection on November 11 and November 14, 2022, states that the Debtors are operating their businesses and managing their properties as debtors-in-possession under the Bankruptcy Code. 

It also highlights the appointment of an Official Committee of Unsecured Creditors by the US Trustee. FTX’s investigations have revealed that CAIS received transfers totaling at least $6.5 million in debtors’ funds between May and September 2022. 

As part of their ongoing efforts to understand the debtors’ financial landscape, transactions, and estate, FTX has requested CAIS to produce relevant documents and information related to payments, agreements, communications, and other pertinent details.

Debtors Seek Answers

According to the motion filed on October 25, despite the debtors’ attempts to engage in a cooperative dialogue and resolve the matter amicably, CAIS has rejected voluntary requests for accounting and failed to respond to formal correspondence. The filing reads: 

The Debtors have attempted to engage in a cooperative meet and confer process to obtain information from the CAIS voluntarily. The Debtors have so far been unsuccessful. On a phone call on August 22, 2023, counsel for CAIS expressed unwillingness to make its records related to the transfers available to the Debtors. In emails between October 2-6, 2023, Debtors requested information concerning the amount of Debtor funds CAIS has spent, the amount of Debtor funds it has retained, and its financial condition. CAIS declined to provide that information. 

The motion concludes by stating that notice of this action has been provided to relevant parties, including the US Trustee, the Committee’s counsel, the Securities and Exchange Commission, the Internal Revenue Service, the US Department of Justice, the US Attorney for the District of Delaware, and CAIS itself.

FTX

FTX’s native token, FTT, is trading at $1.22, marking a return to the $1 level for the first time since November 2022. Although it has experienced a decline of over 5% in the past 24 hours, the token has exhibited noteworthy gains over the past seven days, amounting to a 17% upward trend. 

The token’s value has diminished by more than 95% when considering the one-year timeframe.

Featured image from Shutterstock, chart from TradingView.com 

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Court Rules Sam Bankman-Fried Will Remain In Jail Through Trial, Here’s Why

During a court hearing held on Thursday, September 28, 2023, the Court ruled that the former CEO of now-bankrupt crypto exchange FTX Sam Bankman-Fried aka SBF will remain in jail throughout his trial.

Sam Bankman-Fried To Remain In Jail Throughout His Trial

At the brief court hearing on Thursday at the Manhattan federal court, Bankman-Fried’s lawyers requested that the court should temporarily release their client so he could be able to prepare his defense against the charges raised against him. However, the judge overseeing the case Judge Lewis A. Kaplan has denied the request as he believes the Defendant is a flight risk.

“The closer we get to trial, the more I’m wondering about that. Your client in the event of conviction could be looking at a very long sentence. If things begin to look bleak … maybe the time would come when he would seek to flee.” Judge Kaplan stated in the court hearing in Manhattan federal court.

Bankman-Fried’s lead lawyer Mark Cohen then argued that there was no reason for his client to try and flee. Cohen told Judge Kaplan that his request was made due to him being unable to meaningfully confer with his client Bankman-Fried as long as he is jailed at the Metropolitan Detention Center in Brooklyn.

In response, Assistant US Attorney Danielle Kudla told Judge Kaplan that Sam Bankman-Fried already had enough time to prepare for his trial. Kudla pointed out that Bankman-Fried had more than seven months to review his evidence and better prepare for his trial from the comfort of his parent’s home in Palo Alto, California since his freedom was not revoked until July 2023.

Sam Bankman-Fried was extradited to the United States from the Bahamas in December last year and he was placed on house arrest in his parent’s home in Palo Alto, California where he had limited access to electronic devices until he was jailed on August 11, 2023, by Judge Kaplan.

Sam Bankman-Fried was denied a $250 million bond by Judge Kaplan after the judge discovered that Bankman-Fried tried to tamper with and influence potential witnesses testifying against him.

However, Judge Lewis A. Kaplan pondered on what Cohen had said and he stated that the court would arrange for Cohen and other lawyers to meet with Bankman-Fried most of the trial days at 7:00 AM at the court to speak with Bankman-Fried hours before the testimony begins.

Bankman-Fried’s trial is set to begin on Tuesday, October 3, 2023, and it is expected to last more than 6 weeks. His lawyers already lost two other bail appeals before now. This marks the third time that the Defendant’s request to be released during his trial will be rejected by the court. 

Prosecutors Bring Several Allegations Against FTX Founder

CEO Sam Bankman-Fried has pleaded not guilty to several allegations brought against him following the collapse of crypto exchange FTX back in November 2022.

Prosecutors accused Bankman-Fried of allegedly deceiving customers and investors to enrich himself and other executives while playing a major role in FTX’s multibillion-dollar collapse in November last year.

It was believed that Bankman-Fried stole billions of dollars in FTX customer deposits to resolve Alameda Research debts – a crypto hedge fund governed by him, live lavishly in the Caribbean, and fund political campaigns.

Former Chief Executive Officer of Bankman-Fried’s Alameda Research hedge fund Caroline Ellison already pleaded guilty to fraud. She is expected to testify against Bankman-Fried in the upcoming trial.

FTX FTT Token price chart from Tradingview.com (Sam Bankman-Fried Trial)

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FTX Wallets Begin Moving Tokens One Month To Sam Bankman-Fried’s Trial

Following the FTX crash back in November 2022, there was still a good chunk of crypto running into the billions left in the exchange’s wallets after the new team’s recovery efforts. These tokens have sat idle for a long time in the wallet as the legal battle between the exchange and its creditors waged on.

The time of idleness for these assets may now be over though as recent activities show that a large chunk of tokens from the FTX wallets are now on the move.

FTX Wallets Come Alive

The FTX wallets are still holding large amounts of various tokens worth over $3.5 billion. These tokens include Solana (SOL) which makes up a large portion of the funds. This is because the exchange was one of the biggest backers of the Layer 1 blockchain and received a significant amount of vested SOL tokens in return.

Given the large amount that the wallets currently hold, it is a cause of concern when the entity begins moving tokens. This is what happened when on Sunday, an X (formerly Twitter) user raised awareness of the large amounts being moved out of the wallet.

The tokens being transferred out, starting from August 31, include Ethereum’s ETH, FTX’s FTT Token, Sushiswap’s SUSHI, and Uniswap’s UNI, among others. In total, around $14 million have been moved. Amid this, the X users asked community members to keep an eye on the around $200 million in Wrapped Bitcoin (WBTC) on the Solana network that the wallets hold.

The assets were transferred to what looks to be another holding wallet using the Wormhole Bridge. However, while the destination of these tokens was not a crypto exchange, it has not stopped speculations about a potential sell-off from happening. “Looks like they’re gearing up for potential sell-offs,” the X user said.

Where Are The Tokens Headed?

A development that unfolded toward the end of August could tell where the tokens being transferred from the FTX wallet are headed. The exchange had filed a motion with the court on August 24 to allow it to employ the services of asset manager Galaxy Digital to help hedge its remaining assets against volatility.

The Investment Services Agreement would see Galaxy Digital take control of FTX’s assets. This way, FTX plans to protect the value of the remaining assets, as well as profit from the investment decisions made by the Asse management.

Given that the asset transfers started a week after this filing, it is plausible that the exchange is moving assets into the custody of Galaxy Digital. Nevertheless, such a move would still result in a possible sell-off since it would have to “seek and obtain the most favorable terms reasonably available” and would be authorized to sell up to $100 million in tokens a week.

The coin movements are also happening just one month until FTX founder Sam Bankman-Fried is expected to face trial on fraud and mismanagement charges. The courts have said that SBF’s defense could file to postpone the trial date which would be considered. But for now, it seems the former CEO is set to go to trial on October 3.

FTX FTT price chart from Tradingview.com

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FTX’s-Sam Bankman-Fried Puts Trial Defense Together With 7 Expert Witnesses

Sam Bankman-Fried (SBF), the founder of the defunct FTX exchange, is set to face trial in October, barring any postponement. Amid the fracas, the former exchange CEO has maintained that he isn’t guilty of all these charges leveled against him and will be reportedly bringing expert witnesses to prove his innocence.

Sam Bankman-Fried Defense To Call Seven Expert Witnesses 

According to a Bloomberg report, Sam Bankman-Fried is employing the services of seven different expert witnesses to help bolster his case. These expert witnesses may form part of SBF’s defense, and if so, they will be allegedly paid $1,200 an hour to testify in favor of FTX’s former CEO. 

This means that SBF’s defense could be spending up to $8,400 an hour for these expert witnesses, a staggering figure given that high-profile trials like these can drag out for a long time.

This list of expert witnesses released so far includes Lawrence Akka, Thomas Bishop, Brian Kim, Joseph Pimbley, Bradley Smith, Peter Vinella, and Andrew Di Wu.

Expert witnesses are persons with specialized knowledge in a particular field. They are usually called upon in court proceedings to break down complex or technical issues that the Judge and the jury may not be conversant with. 

According to the defendant’s notice, SBF’s expert witnesses will give evidence of various issues, including campaign finance laws, the finances of FTX and its sister company, Alameda Research, and the crypto exchange’s software infrastructure. 

However, it is surprising that SBF is calling an expert witness to give background information on the US campaign finance laws, considering that the prosecution had dropped the charge of him violating campaign finance rules. 

The charge was dropped because it didn’t form part of the US government’s extradition agreement with the Bahamas government, and thus had no legs to stand on. But it seems defending himself against such allegations is important to the FTX founder given he is preparing a defense for it. 

FTX FTT Token price chart from Tradingview.com (Sam Bankman-Fried) trial

DOJ Objects To SBF’s Expert Witnesses

In reply to SBF’s notice of his expert witnesses, the government has filed a motion to exclude the testimony of these witnesses. The prosecutors argue that these experts and their accompanying disclosures suffer from an “array of deficiencies” that necessitate their exclusion. 

For one, their opinions have no basis as required by the Federal Rule of Criminal Procedure. According to the prosecutors, their opinions, among other things, are “irrelevant, unfairly prejudicial, and confusing to the jury.”

They further argue that these experts will offer legal conclusions that “invade” the power of the court and the jury, so the court should exercise its “gatekeeping authority” and preclude their testimonies.”

The Prosecutor’s motion contains extensive arguments on why each of these expert witnesses’ opinions should be excluded. They stated that Professor Smith’s testimony is “irrelevant, confusing, and a waste of time” since SBF’s trial doesn’t include a charge stemming from the defendant’s “illegal campaign finance scheme.”

Meanwhile, they argue that Mr. Vinella’s testimony should be excluded on the grounds of qualifications, relevancy, and admissibility. If rejected, they have the court to grant them a Daubert hearing to evaluate his “qualifications, methodology, and the relevance and reliability of his proposed testimony. 

Mr. Vinella seems to be SBF’s primary expert witness as he is set to opine on various topics, including FTX’s operations and how the company took “commercially reasonable steps” to protect customers’ funds despite the lack of regulatory clarity in the US. 

SBF currently faces seven counts of financial fraud, including wire fraud on FTX and Alameda customers, securities fraud, and money laundering.

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FTX Token Jumps 65% As SBF Returns Home, Can FTT Hold The Gains?

FTX Token (FTT) saw massive gains on Thursday as news of former CEO Sam Bankman-Fried making bail spread across the space. The rapid uptick in the price of the token showed the positivity, albeit brief, that had spread across investors in the token. However, as the dust settles on the disgraced founder, the question now becomes whether the digital asset can hold the gains from yesterday.

FTT Jumps 65% 

On Thursday, Bankman-Fried’s parents had put their home up to raise money for the $250 million bond put on the former CEO, with friends and associates speculated to have helped come up with the 10% collateral required for his release. However this was achieved, Sam was released under house arrest.

Soon after the news broke, the price of FTX’s native token FTT made a significant jump. After trending just below $1 for the better part of the week, the 65% push had brought it above $1.1. This brought renewed vigor to the market and momentum rightfully picked up.

FTX Token (FTT) price chart from TradingView.com

The problem now is that FTT has not done a good job of holding onto these gains. Naturally, the brief surge in price had triggered sell-offs among investors looking to take out some profit, triggering another fall below $1. In the early hours of Friday, there had been a 9% jump that brought FTT’s price above $1 once more, but even this would not hold.

Support remains weak at $1 and it is now a battle between the bears and the bulls to turn this critical level in their favor. Right now, the bears remain in control of the digital asset with the price sitting at $0.96, and FTT has struggled to break the resistance mounting at $1.

What About FTX?

For many in the space who lost money when the FTX crypto exchange collapsed, this is just the beginning of the battle. Charges have already been brought against Bankman-Fried and his associates in what is being called the ‘largest fraud of the generation’ but there is still a long way to go.

On Thursday, it was reported that Paul Hastings LLP had been appointed by a committee to represent the interests of creditors in the FTX bankruptcy case. So far, the new FTX CEO John J. Ray III said he and his team had been able to recover around $1 billion worth of assets.

Former Alameda Research executive Caroline Ellison and FTX co-founder Gary Wang have already pled guilty to fraud charges and agreed to work with authorities. Both have been released on $250,000 bonds with travel restrictions.

As the FTX case develops, it is expectedly going to have a big impact on the price movements of FTT tokens. Given this, investors should exercise caution when investing and trading the cryptocurrency.

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Alameda-Backed Tokens Suffer As FTT Fights To Stay Alive

In the wake of the FTX decline, the official token of the crypto exchange, FTT Token, has suffered a massive blow in the market. In the three days since Binance’s announced its intention to sell off its FTT, the token has recorded double-digit losses. However, the losses have not just been localized to one token, the general crypto market has suffered for it, but the worst of it has been reserved for the tokens Alameda Research has invested in.

FTT Token Slumps

In what has been a shocking development for the entire crypto space at large, FTT Token has crashed more than 80% in a matter of days. The token which was backed by the 2nd largest crypto exchange has continued to suffer significant setbacks.

In just the last 24 hours alone, the price of FTT is down more than 70%. The token is now trading at levels not seen since 2020. It has now also hit a new two-year low, making it one of the worst-performing coins of 2022.

The decline looks eerily similar to that of the LUNA token following the collapse of the Terra network. In the same vein, the cryptocurrency has lost billions of dollars off its market cap and is currently sitting at a fully diluted market cap of $1.5 billion.

FTT (FTX) toke price chart from TradingView.com

FTT token trading at $4.459 | Source: FTTUSD on TradingView.com

Interestingly, the trading volume of FTT is up over 130% in the last 24 hours as traders try to take advantage of the token. Short traders have obviously enjoyed the most profit from their activities as FTT’s price dropped from $19 to $3 in a matter of hours.

Alameda Tokens Not Left Out

Alameda Research was one of the most active firms when it comes to crypto investments, which means they had their hands in a lot of pots in the space. As FTX is being brought to its knees, these other tokens have felt the impact of such a collapse.

Solana (SOL) which Alameda is vocally a backer of has been hit the worst of all tokens besides FTT that the firm holds. In the last 24 hours alone, SOL price is down more than 34%. The same is the case for Lido DAO (LDO) which has declined 23% in the last day. 

Alameda reportedly holds 100 million BitDAO (BIT) tokens and the coin is down 15% in the last 24 hours. 1inch Network has also suffered a similar fate, although to a lesser extent with only 7% in losses in the last day. All DeFi protocols that Alameda is invested in including MobileCoin, Serum, and Liquidity are mostly down double-digits as well.

FTX was an investor in the recently launched Aptos blockchain and the token has not been left out of the bloodbath. APT is down 30% in the last day as its price has declined to $4.47 at the time of this writing. 

Featured image from Currency.com, chart from TradingView.com

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Holding FTT And BNB? It Might Be Time For You To Get Out

Cryptocurrencies such as BNB and FTT have been seeing some downside in the last 24 hours. This follows an eventful weekend that has culminated in what has been a clear intention of crypto exchange Binance to begin dumping its FTT holdings. As a result, there is expected to be a reaction from both FTT and BNB when the exchange completes the dumping of its billion-dollar holdings in FTT.

Binance Pulls Out Of FTT

Social media was lit afire when Binance CEO Changpeng Zhao (CZ) said that the crypto exchange had decided to liquidate its FTT position. Now, Binance had been an incubator for the FTX exchange and when the exchange exited, it had received $2.1 billion in stablecoins and FTT tokens, which Binance has held until now.

However, according to CZ, the crypto exchange has decided that it is going to sell off its FTT holdings following recent “revelations”. Binance had already begun its sell-offs with almost $600 million worth of FTT tokens that were moved to the exchange to be sold. 

CZ explained that they were actually looking at ways to sell the tokens while minimizing the impact on the market. The CEO said that the exchange usually just holds tokens that they get, but it had decided to go this way with FTT following what can only be speculated to be glaring red flags about the token or the FTX exchange.

It is no surprise that Binance is choosing to play it safe this time around. The Terra collapse had actually cost the exchange billions of dollars because it held through the worst of it. The exchange’s $2.2 billion worth of LUNA tokens was only worth a couple of hundred dollars once the network collapsed.

FTT Token price chart from TradingView.com

FTX Token struggles at $22 | Source: FTTUSD on TradingView.com

Retaliation Against BNB?

As CZ mentioned in his tweet, the crypto exchange actually holds tokens so it doesn’t seem like they were taking action against competitors. With the selling of its FTT tokens, there is no doubt that this is how it will come off, especially after the offer for FTX to buy the tokens from Binance at a value of $22 per token was reportedly turned down.

Given this, it is expected that FTX would likely retaliate towards the exchange by selling off any BNB tokens that it holds. A development such as this could see both digital assets suffer massive declines in price, which is already being witnessed at this point.

At the time of this writing, FTT and BNB are both down 1.85% and 5.01% respectively in the last 24 hours. As the saying goes, “When elephants fight, it is the grass that suffers”, retail investors will likely bear the brunt of the war between these two giants.

For many, this has signaled an exit point while watching the battle unfold from afar. If it turns into a full-blown war of both exchanges trying to undermine the other, then it will likely be the trigger that pushes the crypto market below its current cycle lows.

Featured image from Bitcoinist, chart from TradingView.com

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Ethereum Whales Purchase Over $6 Million Worth Of APE Tokens

The APE crypto project has arisen as the most purchased digital currency by the largest Ethereum wallet in the last 24 hours.

The release of the APE crypto project has been the table-shaker of this week. Interestingly, last Thursday, the APE coin was deployed into the public markets after being distributed to BAYC NFT holders as an airdrop.

Currently, news has it that mainstream Ethereum users are readily interested in going big on the APE coin, and they have their actions to precede them.

WhaleStates About Ethereum

WhaleStates, one of the leading crypto whale analytics platforms globally, published a tweet about the latest updates on the APE coin. From the post, the analytics giant described the Ape coin as climbing up the leaderboard of the top 10 purchased crypto tokens by over 1,000 largest ETH whale traders within the past 24 hours.

Related Reading | Shiba Inu Exodus: 32,000 Holders Lose Interest In The ‘Dogecoin Killer’

The APE coin sits as the #4 leaderboard of most purchased tokens globally, following USD Coin (USDC). Additionally, it is the leading BUSD token with an Average Purchase Amount of $40,854 in the past 24 hours.

Notably, the first ETH address purchased exactly 300,000 APE coins (sold at $3.3 million current). This trade occurred on March 18th.

ETH price recovers above $3000 | Source: ETHUSD on TradingView.com

Then, the transaction was valued at over $4.2 million. Thus, making the whale trader at a 7.88 decrease since its All-Time-High price of $17.75 on Friday 18th March.

What Is The APE Coin?

ApeCoin is an Ethereum-based (ERC-20) utility and governance token utilized within the APE network. It facilitates decentralized transactions within the ecosystem and empowers the entire community to develop at the vanguard of web 3.0. ApeCoin has an unchangeably fixed supply of 1,000,000,000 tokens, but there are currently only 277,000,000 tokens in circulation.

ApeDAO, the project’s decentralized organization, deployed the APE coin for gaming, culture, and community to further the developments of the company’s Web 3.0 innovations.

Already, ApeCoin has been listed among several leading crypto exchanges and crypto analytics platforms. They include Gemini, FTX, Coinbase, Binance, Global Coin, eToro, Kracken, and Voyager.

Who Are The Whales?

Amazingly, the crypto whale that made this purchase is Ethereum’s 10th largest whale. However, his portfolio comprises nearly 50% FTT token, FTX exchange’s native token.

Moreover, asides from that first purchase, a second transaction occurred by the 20th biggest whale in the Ethereum blockchain. This second whale purchased an equal amount of APE tokens that day (Thursday, 17th March).

Related Reading | Bitcoin Breaks Past The $40,000 Barrier Again – Can It Sustain The Momentum?

On Sunday, ApeCoin published more recent developments about the APE coin, highlighting the collaboration with Time Magazine. Thus, the magazine giant will begin to use the APE coin to facilitate online subscriptions.

Featured image from Pixabay, chart from TradingView.com