Altcoins News
FTX Goes After Celebrities For Millions Of Dollars In Promotional Payments
It has been almost one year since the FTX crypto exchange filed for bankruptcy and the contagion brought about by its collapse continues to unfold.
So far, the exchange has gone after various companies and institutions in a bid to recover the billions of dollars owed to its creditors and formulate a repayment plan. But this time around, the bankrupt crypto company has turned its attention toward promotional payments paid to celebrities and the like.
FTX Wants $18 Million In Promotional Payments
During its peak back in 2021, the FTX exchange was known for its far-reaching marketing campaigns. Celebrities were not left out as the likes of Tennis star Naomi Osaka and Basketball legend Shaquille O’Neal were also brought on by the exchange for promotional purposes. These deals saw the stars receive millions of dollars in prepayments, and now, the exchange wants it back.
FTX’s intent to claw back these promotional payments was made in a massive August 31 filing with the court. In total, the exchange is looking to clawback approximately $18 million in prepayments made to celebrities, as well as sports teams and arenas.
The largest single prepayment that the exchange is looking to recover is a $3,398,046.99 payment made toward the deal for the naming rights of the Miami Heat Arena. In 2021, FTX shocked the crypto space when it acquired the rights to rename the infamous Miami-Dade arena to the FTX Arena for a $135 million deal spanning five years. However, a year later, the exchange collapsed and the arena stripped the FTX name.
Approximately $18 million made in prepayments for promotions
Other notable payments include $2,348,338.83 made to Canadian businessman Kevin O’Leary, $1,850,000 made to GameStop, a total of 2,564,187 made in two payments to Fortune Media Inc., and $1,989,166.67 made to the Coachella Music Festival, LLC.
The celebrity names that pop in the filing include Naomi Osaka for a total of $308,33.34, ABG Shaq, LLC for $749,999.93, Trevor Lawrence for $205,555.35, and David Ortiz for $270,833.55. The exchange is also seeking $417,150 from the Warriors professional basketball team.
FTT Token price continues to fall amid exchange's battles | Source: FTTUSDT on Tradingview.com
Crypto Market Braces For Possible Exchange Dumping
Amid the ongoing legal battle to recover FTX funds belonging to customers, rumors have emerged that the exchange may be getting ready to dump its significant crypto stash. A decision is expected to be made on Wednesday, September 13, regarding FTX’s request to sell its crypto holdings, and if it is granted, then it could see the company offload its $3.4 billion crypto stash on the market.
The exchange had previously appointed Galaxy Digital to be in charge of selling its crypto holdings, meaning that it expects to be granted leave from the court to do so. With only two days to go, coins such as Solana (SOL) have already begun to decline in anticipation of the exchange selling the over $400 million worth of SOL it holds over time.
FTX also holds a significant amount of Bitcoin, Ethereum, Dogecoin, Polygon, Aptos, and its native token, FTT Token. However, it is unlikely that the exchange would be able to dump all of these tokens at once with some being locked under vesting, as long as the court puts a limit on how much can be sold at a time.
Featured image from Unsplash, chart from Tradingview.com
Altcoins News
Shiba Inu: Celebration for the Burning of 176 Million SHIB in a Historic Transaction
In an exciting development for the Shiba Inu community, September 20 marked a significant milestone as Shiba Inu’s official burn tracker announced that over 176 million SHIB tokens had been burned in a single transaction. But that’s not all; in the last 24 hours, a total of 135,933,606 SHIB tokens were burned, adding up to an impressive total of 521,814,163 tokens burned in just 7 days.
Impact on SHIB Price
As expected, this exceptional event has captured the attention of the cryptocurrency community and Shiba Inu investors worldwide. In the latest hourly update provided by Shibburn, the current price of the meme coin stands at $0.0000073, with a slight 0.15% decrease in the last hour. Although there has been a 1.34% decrease in the price in the last 24 hours, Shiba Inu’s market capitalization remains strong, valued at $4,297,527,749.
Lucie: The Voice of the Shiba Inu Community
On September 18, a key member of the Shiba Inu team, known as Lucie, addressed the community to answer burning questions about the highly anticipated SHIB token burn in Shibarium. Lucie emphasized that token burns are scheduled per transaction, meaning they occur based on the level of community participation. In a passionate plea, she urged SHIB holders to support this effort, stressing that SHIB burns are the result of close collaboration between developers and the community.
Lucie also pointed out that while it’s exciting to see enthusiasm for token burns, it’s crucial for the community to understand that SHIB burns are a community-driven initiative and not a call for developers to take immediate action.
Shibarium’s Focus: Strengthening BONE ShibaSwap
Amidst this backdrop of token burns, the Shibarium team has shifted its focus to strengthen the Bone ShibaSwap token, also known as BONE. Lucie emphasized that the implementation of BONE aims primarily to safeguard the interests of investors. To achieve this goal, the team has implemented a temporary locking contract along with a decentralized multi-signature wallet, ensuring maximum protection for Shiba Inu investors.
Shibarium’s Success with NOWNodes
Recently, Shibarium achieved an impressive feat by processing over 7 million RPC requests for the network in just one week. This achievement sets a new record for the platform and underscores the growing importance of Shibarium in the cryptocurrency ecosystem. NOWNodes, a node service provider supporting more than 80 blockchain networks, reported on this noteworthy accomplishment, highlighting Shibarium’s increasing relevance in the world of cryptocurrencies.
The Shiba Inu community is excited about these recent developments and the massive SHIB token burn, further bolstering their confidence in the project. With Shibarium gaining momentum and active community engagement, the future of Shiba Inu appears bright in the world of cryptocurrencies.
Altcoins News
Crypto Enforcement Funds Under Scrutiny: Congressman Emmer Calls For Restrictions On SEC
In a recent statement, Congressman Tom Emmer, a prominent figure in the GOP and a staunch advocate for crypto, expressed his concerns regarding the actions of Securities and Exchange Commission (SEC) Chair Gary Gensler.
Emmer accused Gensler of abusing his authority, leading to the expansion of the Administrative State while “disregarding the interests of the American people”.
To address these concerns, Emmer plans to sponsor an appropriations amendment aimed at restricting the SEC’s use of funds for crypto enforcement until clear rules and regulations are established.
Emmer Advocates For Clear Rules In The Crypto Industry
Emmer’s criticism of Chair Gensler centers on what he perceives as the weaponization of taxpayer dollars. Emmer argues that Gensler has utilized his position to further centralize regulatory control without ensuring a transparent and regulatory-friendly environment for the crypto industry.
By proposing to restrict the SEC’s funds for digital asset enforcement, Emmer seeks to emphasize the need for clear guidelines that protect both investors and innovators in the crypto space.
Addressing Senator Elizabeth Warren’s stance on cryptocurrencies, Emmer refers to her as a “control-freak senator” with an inclination towards centralized control.
He suggests that Warren favors a government-owned banking system and desires to retain the centralized power that comes with central banking. Emmer acknowledges the importance of central banking’s role but emphasizes the need for its evolution to adapt to the 21st century.
Emmer further asserts that attempts to suppress digital assets and cryptocurrencies are futile. He cites China’s unsuccessful ban on mining activities as evidence that even authoritarian regimes struggle to control decentralized technologies.
Emmer believes that a country like the United States, which “cherishes freedom”, cannot impede the progress of digital assets and cryptocurrencies.
The congressman’s remarks shed light on his perspective as an advocate for the crypto industry and his concerns regarding regulatory overreach. Emmer emphasizes the necessity of clear and balanced regulations that foster innovation while protecting investors.
By sponsoring an appropriations amendment, he aims to use the legislative process to ensure that the SEC’s enforcement actions align with well-defined rules and regulations.
As Emmer’s proposed amendment gains attention, it reflects the ongoing debate surrounding crypto regulations in the United States. The crypto industry seeks regulatory clarity to foster growth and innovation, while regulatory bodies like the SEC aim to protect investors and maintain market integrity.
Finding the right balance between oversight and innovation remains a key challenge, and Emmer’s efforts contribute to shaping the future of crypto regulation in the United States.
It remains to be seen how Emmer’s appropriations amendment will progress through the legislative process and how it will be received by his colleagues.
As the nascent industry continues to evolve, the role of Congress and regulatory agencies in establishing a clear and balanced regulatory framework will be crucial for its long-term success and widespread adoption.
Featured image from iStock, chart from TradingView.com
Altcoins News
US Forces Young Hacker To Forfeit $5.2 Million In Bitcoin
Last month, Ahmad Wagaafe Hared, a young hacker based in the United States, was ordered to forfeit approximately $5.2 million worth of Bitcoin (BTC), Stellar (XLM), and a BMW sports car to the government. According to a report, this order was made last week due to Hared’s involvement in a SIM-swapping scheme that targeted crypto executives in North California and the Bay Area.
The Bitcoin SIM-Swapping Hack
The SIM-swapping scheme, orchestrated by Hared–who went by the alias “winblo” — began in 2016 and was stopped by local authorities in 2019.
Hared and his accomplices obtained their victims’ contact information before entering a plea agreement with law enforcement agencies. They would then contact cellphone service providers, manipulating company representatives into believing they were the legitimate owners of the targeted phone numbers.
After that, they swapped cards, illegally taking control of their victims’ phone numbers. With this scheme, the hacker gained unauthorized access to their victims’ email and other crypto accounts before transferring coins.
The success of this scheme is evident in the significant amount of assets ordered for forfeiture. Hared must surrender 119.8 BTC, valued at $5.2 million, and 93,420 XLM, worth $11,770. A 2017 BMW sports car, believed to be proceeds of crime, must also be surrendered to the state.
The young hacker has been under arrest for over three years now. As mentioned, in 2019, Hared entered a plea agreement, though many case documents remain sealed, and the deal has not been disclosed to the public. Hared will be sentenced in January 2024 after pleading guilty to conspiracy to commit wire fraud.
According to details, this case is tied to another SIM-swapping scheme, which saw the indictment of Anthony Francis Faulk, also known as “shade,” who pleaded guilty to conspiracy to commit wire fraud in 2019.
Hackers Have Stolen Over $200 Million In 2023 Alone
In a recent report, blockchain intelligence firm Chainalysis claimed that hackers linked to North Korea have stolen over $200 million worth of cryptocurrencies to finance their nuclear weapons program.
In August, Lazarus Group said to be sponsored by the North Korean regime, was linked to the $34 million CoinsPaid hack. They were also reportedly behind the Stake.com hack, the FBI claims. The hit on the crypto casino saw over $40 million of coins robbed.
As part of their activities, hackers employ several tactics to steal Bitcoin and coins, including SIM-swapping, phishing, supply chain attacks, and infrastructure hacks.
Feature image from Canva, chart from TradingView
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