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 considered selling FTX equity to Saudi crown prince, says Caroline Ellison. United States banking giant JPMorgan debuted its in-house blockchain-based tokenization application, the Tokenized Collateral Network (TCN). And Brazil’s Congress wants Binance boss Changpeng “CZ” Zhao and other exchange executives put up for indictment.
Sam Bankman-Fried considered selling FTX equity to Saudi crown prince, says Caroline Ellison
FTX co-founder and former CEO Sam Bankman-Fried attempted to raise equity for FTX by considering an investment from Saudi Crown Prince Mohammed bin Salman, according to courtroom testimony from former Alameda Research CEO Caroline Ellison.
One more Caroline Ellison courtroom sketch.
This one featuring SBF himself! https://t.co/q3O6xqxEhl pic.twitter.com/cQJbj5V1H7
— Ariel Givner, Esq. (@GivnerAriel) October 11, 2023
This testimony came during day 6 of the Bankman-Fried’s trial for alleged fraud, on Oct. 11. Ellison reportedly testified that she and the defendant discussed methods by which the two could hedge their investments in 2022. According to Ellison, the potential investment by Mohammed bin Salman was one of the notes mentioned in one of their online journals titled “Things Sam is Freaking Out About.”
JPMorgan debuts tokenization platform, BlackRock among key clients
United States banking giant JPMorgan debuted its in-house blockchain-based tokenization application, the Tokenized Collateral Network (TCN), on Oct. 11, according to Bloomberg. TCN settled its first trade for asset management giant BlackRock.
The Tokenized Collateral Network is an application that allows investors to utilize assets as collateral. Using blockchain technology, investors can transfer collateral ownership without moving assets in underlying ledgers.
In its first public collateralized trade between JPMorgan and BlackRock, the TCN turned shares of one money market fund into digital tokens, which were then transferred to Barclays bank as security for an over-the-counter derivatives exchange between the two companies.
The first internal test of the TCN was conducted by JPMorgan in May 2022, with a pipeline of other clients and transactions now that TCN is live. The TCN was launched to streamline and scale the process of traditional settlements on a blockchain. The use of decentralized technology made the process faster, more secure and more efficient.
According to Tyrone Lobban, head of Onyx Digital Assets at JPMorgan, the new TCN platform unlocks capital and allows it to be used as collateral in ongoing transactions, boosting efficiency at scale. The platform enables the creation, transfer and settling of tokenized traditional assets. It also allows for the movement of collateral nearly instantly, unlike earlier methods.
Brazil’s Congress wants Binance’s CZ indicted
A Brazilian congressional committee recommended law enforcement indict Binance CEO Zhao and three local Binance executives after wrapping up a probe into financial pyramid schemes.
In an over 500-page final report published on Oct. 10, the committee accused Zhao and local Binance executives Daniel Mangabeira, Guilherme Haddad Nazar and Thiago Carvalho of fraudulent management practices, operating without sufficient authorization and illegally offering securities trading.
The report claimed Binance, Zhao and others created an “opaque network of legal entities” controlled by Zhao with no other purpose than “evading compliance with the law.”
The committee recommended the Federal Public Ministry and the Securities and Exchange Commission investigate Binance’s alleged tax evasion, money laundering, financing of organized crime and terrorism and illicit derivatives product sales.
The recommendations aren’t legally binding but are instead suggestions, with police and regulatory bodies to decide if to pursue further action.
Binance told Cointelegraph that it “remained committed” to collaborating with the committee and Brazilian law enforcement but “strongly rejects the exposure of our users or employees with baseless accusations of bad practices and the attempts to make Binance a target.”
The indictment of 45 other people linked to multiple crypto companies was also recommended, with the committee alleging they took part in criminal schemes.
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.
