Founder of FTX accused the creator of Binance of extortion
Representatives of the cryptocurrency exchange Binance extorted a bonus of $75 million from the management of the now-bankrupt cryptocurrency exchange FTX to sell their stake. Founder of FTX Sam Bankman-Fried announced this in a tweet.
As assured by the Founder of FTX, FTX was the first to decide to get rid of shares of Binance, as they were unhappy with the partnership with the exchange. Bankman-Fried also said that the founder of Binance Changpeng Zhao, is lying when they say that Binance was the first who wanted to get rid of shares in FTX.
Bankman-Fried added that Binance had no right to get rid of its stake in FTX without the exchange’s management’s approval.
In response, the creator of Binance said that none of this mattered and added that FTX had no right to demand that Binance sell its stake.
Bankman-Fried’s statements came in response to a series of tweets from the creator of Binance, in which he criticized the head of FTX for living a rich life with customers’ money. Zhao had previously assured that he preferred to focus on product development rather than fomenting conflict. There were also accusations against BUSD.
Previously, he had already tried to publicly question the reserves of the American cryptocurrency exchange Coinbase. but soon deleted his tweet because of the clarification of the head of the trading platform Brian Armstrong.
Meanwhile, users also noticed the FTX founder’s selective memory usage. For example, a user under the nickname @Alfietrade noted that Bankman-Fried could remember the existence of $75 million, which allegedly demanded Binance, but can not remember the disappearance of $ 8 billion of clients’ money.
The FTX founder did adopt a policy of ignorance in public interviews after the collapse of the exchange. For example, in an interview with Coffeezilla he said he couldn’t remember the timeline for the $8 billion in missing clients’ money because he doesn’t have any financial statements.
We previously reported on whether the USDN coin will repeat the fate of the UST stablecoin.
Litecoin Falls 14% In Rout
Litecoin was trading at $75.370 by 00:27 (04:27 GMT) on the Investing.com Index on Saturday, down 13.99% on the day. It was the largest one-day percentage loss since June 10.
The move downwards pushed Litecoin’s market cap down to $6.255B, or 0.58% of the total cryptocurrency market cap. At its highest, Litecoin’s market cap was $25.609B.
Litecoin had traded in a range of $75.120 to $89.330 in the previous twenty-four hours.
Over the past seven days, Litecoin has seen a drop in value, as it lost 9.6%. The volume of Litecoin traded in the twenty-four hours to time of writing was $478.884M or 1.70% of the total volume of all cryptocurrencies. It has traded in a range of $75.1200 to $96.4700 in the past 7 days.
At its current price, Litecoin is still down 82.05% from its all-time high of $420.00 set on December 12, 2017.
Elsewhere in cryptocurrency trading
- Bitcoin was last at $25,848.7 on the Investing.com Index, down 2.43% on the day.
- Ethereum was trading at $1,795.96 on the Investing.com Index, a loss of 2.32%.
Bitcoin’s market cap was last at $510.447B or 47.04% of the total cryptocurrency market cap, while Ethereum’s market cap totaled $219.665B or 20.24% of the total cryptocurrency market value.
Ripple case more crucial than ever amid Coinbase, Binance SEC crackdown: Lawyers
The judges presiding over Coinbase and Binance’s lawsuits will likely watch the results of the SEC v Ripple case closely, crypto lawyers told Cointelegraph.
Ripple has been in a legal battle with the United States Securities and Exchange Commission since December 2020, with the regulator alleging that Ripple offered unregistered securities via XRP since 2013.
On June 6 the SEC filed a lawsuit against Coinbase also alleging that it has been offering unregistered securities. A day before it filed a lawsuit against Binance containing some similar allegations.
Lawyer James Murphy, known as “MetaLawMan” on Twitter, explained in a series of tweets on June 9 that a favorable outcome for Ripple could “undermine the entire basis for the SEC’s case” against both Coinbase and Binance.
However, he also warned that “before anyone gets too excited,” a ruling by Judge Torres in the Ripple case would not be “binding precedent” for these recent filings.
This means that the judges for the Coinbase and Binance lawsuit will “not be bound to rule the same way,” as only decisions of the Court of Appeals and the Supreme Court have that influence.
Speaking to Cointelegraph, pro-XRP lawyer John Deaton believes the SEC is “well aware” that Judge Torres’ decision in the Ripple case will be published “in the very near future.”
Deaton believes that the SEC purposefully filed these new cases ahead of that result, in case the regulator faces an unfavorable outcome in the Ripple case, stating:
“I believe the SEC wanted to get those cases filed before that decision just in case it is a bad result for the SEC, possibly causing it to lose some political and legal momentum.”
Murphy believes the judge assigned to the Coinbase case, Judge Reardon, “will pay very close attention” to the determination of whether XRP is a security or not, pointing out that they serve in the same court in lower Manhattan.
He believes that Reardon would “follow the same reasoning” as to whether the 13 tokens cited in the Coinbase complaint are securities, adding that this can go “both ways,” if it’s a favorable outcome for the SEC.
XRP-friendly lawyer Bill Morgan, a consultant at Morgan Mac Lawyers, also opined that the Ripple case could have an influence over the Binance and Coinbase cases.
Morgan explained that the outcome in the Ripple lawsuit can be used as an “advantage” for either the industry or the SEC, depending on the result.
“If they lose badly in the Ripple case, they go forwards with Coinbase and Binance with a substantial judgment against them. Obviously Coinbase and Binance will use that to their advantage that the sales of XRP is not an investment contract.”
Deaton noted that he actually predicted back in 2022 that the SEC would sue Coinbase and Binance “by the way the SEC was approaching the Ripple and XRP case.”
However, he believes that the SEC will tone down its action against crypto firms once the major financial institutions adopt a greater share of the crypto market.
“Once JPMorgan, Goldman Sachs or other traditional players get a bigger slice of the crypto market then the SEC will become more reasonable” he stated.
Tether’s game plan in El Salvador: Why invest in Volcano Energy?
Stablecoin issuer Tether has dipped into its war chest to invest in El Salvador’s $1 billion renewable energy project to help drive Bitcoin adoption in the Central American nation.
The Tether issuer is one of a handful of companies investing in El Salvador’s renewable power generation project. Volcano Energy is set to generate electricity from solar and wind energy in El Salvador to power future Bitcoin mining operations in the country.
The planned 241-megawatt (MW) renewable energy park is the latest move in El Salvador’s Bitcoin adoption drive after the country made BTC legal tender back in 2021.
Cointelegraph caught up with Tether’s chief technology officer Paolo Ardoino during Money 20/20 in Amsterdam. Ardoino — who is attending the renowned finance and payments convention promoting Bitfinex Pay and the Lightning Network — delved into several topics concerning Tether, Bitfinex and the wider cryptocurrency space.
Just two days before the interview, Tether announced it would be investing in Volcano Energy to gain exposure to energy production and leverage the facility to power Bitcoin mining farms in the future.
There is also an ideological element to the move, with Ardoino stressing his belief that El Salvador is blazing a trail for sovereign Bitcoin adoption despite the relatively slow uptake of BTC as a payment option in the country.
Ardoino drew parallels to the European Union adopting the euro as a continental currency in the early 2000s, which required significant resources to change existing financial infrastructure, as well as buy-in from citizens of its 27 member states.
“Given all the powers that they had, it still took five, six years, and yet people were super confused.”
The proliferation of Bitcoin as a payment method in El Salvador has had some teething problems, as explored by Cointelegraph journalist Joe Hall in a recent visit to the country using BTC as a primary means of payment.
Ardoino contends that the path to widespread BTC use and adoption in El Salvador will take time, considering that citizens are not being forced to use the alternative currency in their everyday lives:
“It’s extremely unfair to expect that the whole population will use Bitcoin because, first of all, it’s not forced. Adoption is through private companies and public investments, rather than being taxpayer money.”
Tether’s investment in the country’s energy production program is part of a two-fold strategy. Firstly, investing in energy-producing infrastructure holds its own value, which can then be utilized to power Bitcoin mining operations.
Ardoino also argued against the prevailing narratives around the environmental impact of Bitcoin mining and critiques of the industry for putting a strain on the global energy grid:
“Firstly, the majority of Bitcoin mining is already happening with renewable energy. Secondly, Bitcoin mining is mainly using excess energy anyway, but even more so if we first build the energy production.”
Ardoino said Tether’s investment alongside a group of 12 investors aims to build an energy production facility that companies, factories and households can also tap into. The excess energy from Volcano Energy will be used for BTC mining to help make El Salvador a “unicorn with its own unique story.”
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