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’s criminal trial is coming to a head after prosecutors laid down their final rebuttal to the defense. PayPal says it has received a subpoena from the United States Securities and Exchange Commission (SEC) regarding its U.S. dollar-pegged stablecoin. Meanwhile, Hong Kong’s Web3 plans won’t be hamstrung by the region’s recent JPEX saga, an official said, and SafeMoon’s executive team was arrested and charged on multiple fraud counts.

SBF “lied to get customers’ trust,” prosecutor says

United States Assistant Attorney Danielle Sassoon presented the prosecution’s rebuttal to Sam Bankman-Fried’s defense on Nov. 2. 

Speaking to the court, Sassoon claimed that prosecutors “met the burden” of proving Bankman-Fried’s guilt related to seven counts of fraud and conspiracy to commit fraud. She claimed that the former FTX CEO lied to customers about the safety of their funds, as well as FTX’s relationship with Alameda Research.

“He didn’t want to be a criminal on the run,” she said. “He lied to get customers’ trust.” 

Sassoon also claimed that Bankman-Fried avoided hiring a risk officer because he “knew what he was doing was wrong.”

A jury of 12 will begin deliberations about Bankman-Fried’s fate later in the day.

PayPal faces SEC action related to PYUSD stablecoin: Official

Payment giant PayPal has received a subpoena from the United States Securities and Exchange Commission (SEC) regarding its U.S. dollar-pegged stablecoin.

The Enforcement division of the SEC has sent a subpoena to PayPal related to its PayPal USD stablecoin, the firm officially disclosed on Nov. 2 in its Q3 financial report with the SEC.

Received by PayPal on Nov. 1, the subpoena requested PayPal to produce certain documents, the firm said. “We are cooperating with the SEC regarding this request,” PayPal noted.

The action comes about three months after PayPal launched its PYUSD stablecoin in early August. The stablecoin is issued by Paxos Trust and backed by U.S. dollar deposits, short-term Treasurys and similar cash equivalents. PYUSD is based on the Ethereum blockchain and is aimed at handling digital payments and Web3.

According to a spokesperson for Paxos, PYUSD has seen a successful rollout so far, reaching a $150 million market capitalization in the two months since its launch. At the time of writing, the market cap of PYUSD is valued at about $159 million, with almost $2.7 million in daily trading volume, according to data from CoinGecko.

JPEX saga won’t hold back Hong Kong, says gov’t official

Hong Kong’s Web3 plans are still charging ahead and won’t be hindered by the recent $165 million alleged scandal involving crypto exchange JPEX, says a government official.

The region’s Secretary for Financial Services and the Treasury, Christopher Hui, said in a Nov. 2 keynote at Hong Kong Fintech Week that it’s been asked “many times” if JPEX will affect the government’s plans to grow the Web3 market with the answer “a clear ‘no.’”

Over 2,500 Hong Kongers allege they were defrauded by the Dubai-based exchange JPEX which prompted the Securities and Futures Commission (SFC) to warn that JPEX was promoting its services locally without a license.

Hong Kong has already tightened its crypto regulatory approach with a police and SFC task force and updated crypto policies. Hui, however, said there’s more to come.

Soon, the SFC will issue guidance on tokenized securities and the tokenization of SFC-authorized investment products. Crypto regulations will also expand to cover trades beyond those on “now-regulated trading platforms,” Hui said.

A stablecoins consultation by the Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau is also set to drop soon and Hui said the HKMA will consult on guidance for banks providing crypto custody.

SafeMoon executive team charged with multiple fraud counts, arrests made

The U.S. SEC has charged SafeMoon and three of its executives with fraud and unregistered securities sales in connection with its SafeMoon token.

According to unsealed documents released on Nov. 1, SafeMoon creator Kyle Nagy, CEO John Karony and chief technology officer Thomas Smith withdrew assets worth $200 million from the project and misappropriated investor funds.

The Justice Department’s announcement indicates that, as of the time of publishing, both Karony and Smith have been arrested while Nagy remains at large.

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.