Here’s what happened in crypto today

Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.

Sam Bankman-Fried testified at his criminal trial in New York on Oc.t 26. Meanwhile, the SEC’s Gary Gensler revealed the extent of the regulator’s enforcement actions against the crypto sector, and blockchain forensics firm Elliptic has cleared the record on the amount of crypto donations to Hamas.

SBF reportedly believed his dealings with Alameda were legal

Former FTX CEO Sam Bankman-Fried didn’t think there was anything wrong with taking FTX deposits through Alameda Research, according to reports from his ongoing trial in New York.

Bankman-Fried took the stand on Oct. 26, where he was questioned about his use of the Signal messaging app and other matters related to his failed crypto empire.

“Did you believe taking FTX deposits through Alameda was legal?” defense attorney Mark Cohen asked. “I did,” Bankman-Fried said. “I was CEO of both at that time.”

Bankman-Fried is the last witness to take the stand in his criminal proceedings. Judge Kaplan said the jury will decide Bankman-Fried’s fate “in the first few days of next week.”

The former FTX CEO has pleaded not guilty to all seven charges in his criminal case. However, he’s expected to face five more counts in a second trial slated for March 2024. 

Gary Gensler teases details of SEC’s $5B take from enforcement actions, shades crypto

United States Securities and Exchange Commission (SEC) Chair Gary Gensler’s speech at the 2023 Securities Enforcement Forum shed light on the regulatory body’s enforcement actions amounting to $5 billion in judgments and orders.

However, Gensler’s dig at the cryptocurrency market became a talking point for the crypto community on social media when he said: “Don’t get me started on crypto. I won’t even name all the individuals we’ve charged in this highly noncompliant field.”

While talking about the economic perspective of the SEC’s enforcement action, Gensler noted that the agency filed more than 780 enforcement actions in 2023, including over 500 standalone cases. The enforcement actions led to judgments and orders totaling $5 billion, of which $930 million was distributed to harmed investors.

Gensler added that the SEC had filed lawsuits against 40 firms for violations of various rules and regulations since December 2021, leading to more than $1.5 billion in penalties. Gensler revealed that the SEC settled recordkeeping-related charges with 23 firms in the last fiscal year alone.

In his speech, the SEC chief reiterated his earlier stance on crypto, claiming that most of the crypto market falls under the securities bracket and must be governed under the same law. In his explanation of the broad definition of security, Gensler explained the concept of an investment contract and why a major chunk of the cryptocurrency market resembles it.

According to Gensler, most cryptocurrency assets will pass the investment contract test, bringing them under securities regulations.

‘No evidence’ Hamas is raising millions in crypto, says Elliptic

Blockchain forensic firm Elliptic has clarified there is “no evidence” suggesting that Hamas is receiving a significant volume of cryptocurrency donations, contrary to recent media reports. 

“There is no evidence to support the assertion that Hamas has received significant volumes of crypto donations,” Elliptic said in an Oct. 25 statement. The amounts raised “remain tiny,” the firm added.

Elliptic corrects the record. Your move, @wsjhttps://t.co/eDXmsRAPhq

— nic carter (@nic__carter) October 25, 2023

Elliptic’s statement was framed as a rebuttal to recent articles and letters written by The Wall Street Journal and United States lawmakers, which the firm says had misinterpreted data to make the case that cryptocurrency is widely used to fund Hamas’ “terrorist” activities.

As an example, Elliptic pointed to a “prominent” Hamas cryptocurrency fundraising campaign, operated by Gaza Now, a pro-Hamas news outlet, which has only raised $21,000 since the Hamas attack on Israel on Oct. 7.

Of the $21,000 raised, $9,000 was frozen by stablecoin issuer Tether, while another $2,000 was frozen after it was sent to a cryptocurrency exchange — presumably to cash out, Elliptic noted.

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.