Market Update & Industry News - Week ending 29 March 2024

🔷 Bankrupt crypto exchange FTX’s founder and former CEO, Sam Bankman-Fried was sentenced to 25 years in prison and fined $11 billion by a US District Judge for stealing billions of dollars from FTX customers. FTX suddenly went bankrupt in November 2022 and exactly a year later Bankman-Fried was found guilty of fraud related to the collapse of FTX. Sam Bankman-Fried’s attorney stated that they would file an appeal against the judgment.

Appold view: There have been varied responses to this sentence, with more opinions appearing to feel that the sentence was too lenient after investors, lenders and FTX customers lost around $11bn. 

🔷 The UK’s Financial Conduct Authority (FCA) released finalised guidance on financial promotions on social media which warned social media influencers who use crypto memes will fall into the FCA's scope. According to the guidance all memes, reels, and gaming streams must be fair clear and not misleading.

Appold view: A welcome move by the regulator. For years there have been allegations of certain influencers (and famous people) “pumping” tokens and crypto assets that have no use cases, many of which ultimately crash and lose investors money. This should make them aware of their future actions and bear consequences for non-compliance.

🔷 A US Judge Federal Judge ruled that crypto exchange, Coinbase, will face the Securities and Exchange Commission in a lawsuit concerning alleged sales of securities as an unregistered broker and exchange. The Judge ruled that Coinbase operates as an exchange, broker and clearing agency under securities law, and its staking program engages in unregistered offer and sale of securities.

Appold view: This legal battle will be closely watched. The outcomes may influence how digital assets are classified and regulated in the future, affecting the entire crypto market. It could also net the SEC another windfall in fines or settlements, giving them everything to fight for as they boost their balance sheet.

🔷 Tech giant, Google, announced it would index Bitcoin wallet addresses in its search engine. In an alleged perception of wider adoption and information accessibility, Google will add Bitcoin to its current list of searchable cryptocurrency wallets. Users can now view balances and display transactions.

Appold view: Good for increasing on-chain visibility for the already public data, although probably not so good for those who like minimal exposure and privacy as Google comprehensively indexes activities. The concern now is how Google retargets adverts and monetises its position. A bombardment of Bitcoin ETF adverts maybe?

#Marketwatch #Blockchain #Investments