• FTX files a complaint to retrieve $700M from the „super-networker“ Bankman-Fried.
• Stably pauses withdrawals and minting after Prime Trust halts deposits.
• SEC allows BlockFi customers to be repaid before collection of $30.2M fine.
FTX Files Complaint to Retrieve Funds
FTX has filed a complaint in order to retrieve $700 million from “super-networker” Bankman-Fried, who was courted for his connections. This comes as Stably has paused its withdrawals and minting after Prime Trust halted deposits, while Binance faces legal woes with a Brazil lawmaker seeking to question its general manager. Additionally, the International Monetary Fund (IMF) warned that banning crypto may not be an effective long-term strategy, while BitGo backed out of a deal to acquire Prime Trust.
SEC Allows BlockFi Customers To Be Repaid
The U.S. Securities and Exchange Commission (SEC) has agreed to defer its claim against BlockFi in order to ensure investors are repaid in full without delay. In February 2022, BlockFi agreed to pay a fine of $50 million for failing to register its lending product but it filed for bankruptcy in November 2022 before the amount was fully paid off. The SEC noted that its collection of the remaining $30.2 million fine would be postponed so that customers could be repaid first instead.
IMF Warns Banning Crypto May Not Be Effective
The IMF cautioned that banning cryptocurrencies may not be an effective long-term strategy and urged countries to focus on creating regulatory frameworks instead so as not to stifle innovation or deter investment into digital assets such as Bitcoin and Ethereum. It also suggested that governments should cooperate with each other when developing regulations so as not create additional barriers for businesses operating across borders or jurisdictions within which crypto activities take place globally.
BitGo Backs Out Of Deal To Acquire Prime Trust
BitGo had planned on acquiring Prime Trust but recently backed out due to issues arising from the latter’s suspension of deposit services earlier this year which caused many clients such as Stably to face disruption in their operations . This move by BitGo follows news of Binance facing legal troubles in Brazil where regulators are looking into allegations concerning money laundering and tax evasion by the exchange’s general manager .
Conclusion
Overall, FTX is filing a complaint against Bankman-Fried for funds retrieval while Stably is pausing its withdrawals and minting due to Prime Trust halting deposits amid Binance’s legal woes intensifying in Brazil with regulators looking into allegations against its general manager . Meanwhile, the IMF is warning countries against banning cryptocurrencies , while BitGo backs out of deal with Prime Trust . Lastly, the SEC allowed BlockFi customers repayment before collecting their due penalty of $30 million .
