Here’s what happened in crypto today
The trial of Sam Bankman-Fried continues, with the defense cross-examining former FTX engineering director Nishad Singh. Meanwhile, a job posting by Ripple for a shareholder communications senior manager has sparked chatter among the XRP community about the possibility of an IPO, and FTX customers are one step closer to seeing funds returned to them.
Former FTX exec faces cross-examination from SBF’s defense team
On Oct. 17, Sam Bankman-Fried’s lawyers cross-examined former FTX engineering lead Nishad Singh, who admitted “there was a lot he didn’t remember” during his time at the failed crypto exchange.
Responding to questions from defense attorney Mark Cohen, Singh claimed not to have known about a software bug that exaggerated the liabilities of hedge fund sister company Alameda Research—that is, until he overheard former FTX executives talking about it.
One day earlier, Singh testified that he experienced suicidal thoughts during FTX’s fallout in November 2022.
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— Cointelegraph (@Cointelegraph) October 5, 2023
Tuesday marked the tenth day of Bankman-Fried’s trial. Prosecutors are expected to call additional witnesses to the stand until Oct. 26 or 27, after which time the defense will present its theory of the case.
Ripple job posting hints at possible IPO, XRP community says
Fintech payments company Ripple released a new job posting on Oct. 16 for a shareholder communications senior manager across multiple locations in and outside the United States. The job posting prompted many crypto enthusiasts to label it as an official hint about the company’s plans to go public.
The job posting outlines that the role will require direct communication with shareholders — a concept generally associated with publicly traded companies. The chosen candidate would be responsible for developing and implementing communication and relationship management strategies for “existing and prospective investors, current shareholders, and financial analysts.”
The job description emphasizes the candidate’s need to create strategic plans specifically suited for situations like “M&A [mergers and acquisitions], investments, liquidity events, and other high-impact moments.“
Anyone notice the recent job openings at #Ripple?
The only reason you need a Shareholders Communication Manager.. is for an IPO.
— Chad Steingraber (@ChadSteingraber) October 16, 2023
Many XRP proponents and the pro-Ripple community on X (formerly Twitter) are referring to the job posting as a hint that there may be an IPO. Some key executives from the company have also alluded to the possibility that Ripple might go public but haven’t given any indication of timing.
FTX customers could get $9B shortfall claim payout by mid-2024
Customers of bankrupt crypto exchange FTX and FTX US could see over 90% of assets returned to them by mid-2024 after a proposed settlement was reached between FTX creditors and debtors.
On Oct. 17, FTX debtors said they reached a “major milestone” in their Chapter 11 case after “extensive discussions” with the unsecured creditors’ committee, a committee of non-US customers, and class action plaintiffs regarding customer property disputes.
FTX debtors filed an amended term sheet
1) Shortfall Claim: To benefit customers
90% of funds to go customers est.
2) Customers can settle customer preference exposure
9-day period (2 Nov):
<$250k no payment
>$250k 15% settlement
Does not apply to insiders, fake KYC (Bahamas) pic.twitter.com/DKVclTygiY
— Sunil (FTX Creditor Champion) (@sunil_trades) October 17, 2023
Part of the amended plan consists of the “Shortfall Claim,” in which FTX debtors estimates that customers of FTX.com and FTX US would collectively receive 90% of assets available for distribution.
The Shortfall Claim is estimated to be approximately $8.9 billion for FTX.com and $166 million for FTX US. If approved by the Bankruptcy Court, FTX expects these funds to be disbursed by the end of the second quarter of 2024.
The proposed plan will be filed to court for approval on Dec. 16, according to FTX.
Crypto exchange Binance will stop accepting users in the United Kingdom on Oct. 16
Binance is no longer onboarding new users in the U.K., according to a blog post from the cryptocurrency exchange.
This move comes after the U.K.’s Financial Conduct Authority (FCA) imposed legally binding requirements on its partner Rebuildingsociety.com Ltd (REBS) on Oct. 10. Per those rules, REBS was prohibited from ad promotions soliciting Binance goods and services.
This evidently left Binance without a U.K. partner in compliance with the FCA’s marketing requirements.
According to Binance:
“Binance is currently looking for a new FCA authorised approver. However, there will be some temporary restrictions coming into effect on our Platform (i.e. www.binance.com/en-GB and latest version of our Mobile App) during the period until Binance onboards with a new FCA authorised approver and has its financial promotions reapproved.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.