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FTX’s former legal counsel had some explosive revelations about Sam Bankman-Fried when he appeared at his ex-boss’s criminal trial this week. Meanwhile, Tether executive Paolo Ardoino said the stablecoin issuer plans to publish reserve data in real time in 2024, and blockchain firm LBRY has revealed it is no longer pursuing an appeal against the United States Securities and Exchange Commission (SEC).
SBF asked attorney to “come up” with legal arguments to Alameda’s debt
Sam Bankman-Fried instructed the former legal counsel at FTX to “come up” with an explanation for the $8 billion hole in Alameda Research’s books, according to Can Sun.
In an Oct. 19 hearing at Bankman-Fried’s criminal trial, Sun testified that he only learned about the multi-billion-dollar hole in Alameda’s account just before FTX filed for bankruptcy. “I was shocked,” he said.
Sun considered some legal explanations but ultimately resigned as FTX’s legal counsel. He said Bankman-Fried was familiar with the circumstances that led to his exchange’s downfall and “wasn’t surprised at all” by what was happening.
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— Cointelegraph (@Cointelegraph) October 5, 2023
Bankman-Fried’s trial in New York will continue next week, with prosecutors expected to rest their case on Oct. 26. Bankman-Fried’s defense hasn’t confirmed whether it will bring a case forward.
Tether to publish reserve reports in real time in 2024
Tether Holdings, the issuer of the world’s largest stablecoin by market capitalization, Tether (USDT), is reportedly preparing to update the frequency of releasing its reserve data reports.
Ardoino disclosed that the firm plans to start publishing reserve data in real-time in 2024, Bloomberg reported on Oct. 20.
According to the Tether transparency page, the stablecoin issuer currently publishes and updates its reserves data at least once per day. Tether also issues monthly reserve reports in addition to quarterly reserve reviews.
According to Tether’s Q2 attestation from accounting firm BDO, the firm increased its excess reserves by $850 million, bringing total excess reserves to $3.3 billion. The company also disclosed that it had $72 billion worth of indirect exposure to United States Treasurys held by money market funds, as well as U.S. Treasurys collateralizing its overnight repo.
LBRY says final goodbye as debt mounts on SEC loss
Blockchain company LBRY — the creators of the LBRY blockchain — has issued its final message to the crypto community, citing “several million dollars” of debts that have now made it impossible for the firm to continue.
“This will be our last post,” said the LBRY Inc. team in an Oct. 20 statement on Odysee, a LBRY-powered video-sharing website, which was also shared on X (formerly Twitter).
Very sad to see @LBRYcom shut down. The SEC went after LBRY despite the project being tiny and one of only a handful from its day where a blockchain actually served a useful purpose apart from making founders rich.https://t.co/D9ZLI1b3kS
— Preston Byrne (@prestonjbyrne) October 19, 2023
LBRY said several millions of dollars of debt owed to the SEC, its legal team and a private debtor ended up being too big a barrier to overcome.
“LBRY Inc. must die, there is no escaping this. It has lost a judgment to the federal government, has several million dollars in debts, and has pledged to shut down.”
“Thank you to everyone who fought with us for online freedom,” LBRY added in an Oct. 19 X post.
In its latest statement, the firm revealed it will no longer continue its appeal against the SEC.
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.
