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Collapsed digital asset exchange FTX was today given the green light to sell billions in crypto assets by the judge overseeing its bankruptcy proceedings.

Judge John Dorsey on Wednesday approved that the defunct crypto brand can now sell $3.4 billion in Solana, Ethereum, Bitcoin, and other assets at the U.S. Bankruptcy Court for the District of Delaware.

The companys plan for offloading the assets, first outlined in August, will appoint Mike Novogratzs Galaxy Digital as the investment manager overseeing the sale. According to the plan, FTX will cap its selling at $100 million worth of tokens per week, a limit that could be increased to $200 million on an individual token basis.

Judge Dorsey will allow FTX to raise its weekly maximum if the company gets written authorization from the court. But a footnote on the order clarifies that sales of Bitcoin, Ethereum, stablecoins, and the redemption of stablecoins will notcount towards the $100 million weekly limit. Calculation of the limit will also exclude transactions made to bridge tokens from non-native blockchains back to their native networks.

FTX quickly and unexpectedly went bankrupt last November due to alleged criminal mismanagement.

Billions of dollars in customer cash disappeared and now the exchanges new management now is working to pay back creditors. Selling these assets will help plug the hole, which originally stood at $7 billion.

A Monday court filing showed that FTX owns $1.16 billion in Solana (SOL), $560 million in Bitcoin (BTC), $192 million in Ethereum (ETH), and $137 million in Aptos (APT). The crypto prices in the court document are based on pricing from August 31.

Some $800 million in cash and public equity has already been recovered.

Ex-CEO and co-founder of FTX Sam Bankman-Fried is awaiting a massive criminal trial in October after his crypto behemoth went bust last year.

Feds arrested and hit the fresh-faced ex-Jane Street trader and MIT graduate with 13 criminal charges, including wire fraud, securities fraud, conspiracy to commit bank fraud, and defrauding the Federal Election Commission.

Originally posted here:
FTX Gets Court Approval to Sell Billions in Bitcoin, Ethereum and Solana - Decrypt

Black Swan author Nassim Nicholas Taleb unleashed a barrage of criticism directed at Bitcoin, particularly targeting its commonly touted advantage: a finite supply of 21 million coins.

Talebs comments have created a stir within the cryptocurrency community and prompted a closer examination of Bitcoins intrinsic value.

On the social media platform X, Taleb minced no words, lambasting what he termed bitdiots individuals who believe that the mere scarcity of an asset automatically makes it a sound investment.

According to Taleb, the fundamental confusion lies in equating necessary with sufficient. In his view, there are countless items with restricted supplies that hold little to no value in the market. He humorously pointed out examples such as pebbles from Skorpios, underwear worn by Churchill, books owned by Cary Grant to illustrate his point.

Talebs perspective is a departure from his earlier stance as a Bitcoin supporter. He was initially intrigued by Bitcoin during the global financial crisis and the WhatsApp Revolution in his home country, Lebanon. However, over time, Talebs enthusiasm waned, leading him to view Bitcoin as neither a safe haven nor a viable asset.

Bitcoins limited supply and digital scarcity have led many to consider it as a potential store of value, similar to gold. Some investors and institutions view it as a digital gold that can preserve wealth over time.

A store of value is an asset that can retain its purchasing power over extended periods. Bitcoins limited supply and decentralized nature appeal to those who seek an alternative to traditional stores of value, especially in times of economic uncertainty.

This isnt the first time Taleb has criticized the cryptocurrency market. Earlier this week, he decried attempts to artificially bolster market prices, stating, You may artificially prop up the price; you may paint the tape by coordinated manipulation. But in the end, the market is a market, an idiot is an idiot, & youth, inexperience, & ignorance are not virtues.

Taleb has consistently referred to Bitcoin as a magnet for idiots and likened the cryptocurrency market to a tumor. He prophesied that it would either kill the host or self-destroy. These searing criticisms underscore his belief that Bitcoins allure is driven more by speculation and hype than any inherent value.

As the cryptocurrency community grapples with Talebs unorthodox perspective, its clear that the debate surrounding Bitcoins value proposition continues to evolve.

The authors critique serves as a stark reminder that the cryptocurrency landscape is far from settled, with passionate proponents and critics offering contrasting viewpoints on its future trajectory.

Featured image from Norvan Reports

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Bitcoin Critique: 'Black Swan' Author Courts Controversy With Provocative Take - Bitcoinist

With the majority of the cryptocurrency market slowly moving to reverse the losses suffered in the previous dip, Bitcoin (BTC) is no different, and cryptocurrency experts agree that more price gains, perhaps even a new all-time high (ATH), could be in store.

Indeed, pseudonymous crypto analyst Trader Tardigrade said that the next target for Bitcoin could be $46,000, based on the linear chart that has demonstrated a similar track in the period between 2018 and 2021, according to the analysis shared on September 15.

Earlier, the crypto expert projected that the flagship decentralized finance (DeFi) asset would witness a parabolic rally and perhaps even reach a new record, stating that Bitcoin has never lost its track and that the new Bitcoin ATH is brewing in this post-Shakeout Bull Run.

Additionally, in the most recent post on social media, he highlighted that $30,000 would be a foundation for Bitcoins takeoff toward the new ATH. Specifically, as he explained:

Before reaching ATH, BTC will pullback to $30k. $30k will be the new floor!!

At the same time, a renowned crypto trading expert Michal van de Poppe stressed that Bitcoin might be ready to start the bull cycle if it holds above the 200-week [exponential moving average (EMA)], and it should hold above that level, arguing that its the best period of the cycle to accumulate your altcoins.

It is also worth noting that another crypto analyst, thescalpingpro or Mags, shares the optimistic sentiment, posting a chart that demonstrates the cryptos movements each halving cycle, and announcing the Bitcoin Bull Run Incoming, as Stockmoney Lizards observed textbook Wyckoff behavior, preceding a price run toward $35,000 in 2024.

Meanwhile, Bitcoin was at press time changing hands at the price of $26,455, recording a 0.08% advance in the last 24 hours and gaining 2.42% across the previous seven days while still recording a loss of 9.14% on its monthly chart, as the latest data indicates.

All things considered, whether the maiden digital asset truly manages to demonstrate the price action predicted by the above crypto experts will depend on many different factors, including market sentiment, technical analysis (TA) indicators, and related developments.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Bitcoin to the moon? BTC to target $46k as new ATH brews - Finbold - Finance in Bold

SACRAMENTO, Calif. Folsom company Amani Investments LLC, which operated Coinucopia kiosks that exchanged U.S. currency for Bitcoin, forfeited $1 million in currency, a Mercedes-Benz, Bitcoin, and other items for its criminal efforts to avoid reporting requirements under the Bank Secrecy Act, U.S. Attorney Phillip A. Talbert announced.

In February 2023, Amani Investments LLC, doing business as Coinucopia, pleaded guilty to conspiring to avoid filing Currency Transaction Reports (CTRs) that are required under federal law. The federal Bank Secrecy Act was enacted by Congress to combat the laundering of criminal proceeds, and it requires money services businesses to report each transaction involving more than $10,000 in currency. Willful violation of the requirement to file these reports, commonly called CTRs, is a federal criminal offense.

According to court documents, on multiple occasions Amani Investments exchanged over $10,000 in U.S. currency for Bitcoin without filing a CTR, as required by the Bank Secrecy Act. Many transactions were conducted during face-to-face exchanges of more than $10,000 in cash for Bitcoin with a Managing Officer of Amani Investments, all without the filing of a CTR. In total, approximately $1 million was involved in the crime. Today the court finalized Amani Investments forfeiture order, which included a Mercedes-Benz E63, Bitcoin, gold coins, and $1 million in United States currency.

Federal currency transaction reporting requirements are intended to protect our financial system from the influx of criminal proceeds, said U.S. Attorney Phillip A. Talbert for the Eastern District of California. The U.S. Attorneys Office will continue to hold accountable those who seek to evade these requirements.

Todays sentence holds Amani Investments, dba Coinucopia, a registered Money Service Business, accountable for violating the Bank Secrecy Act, said Tatum King, Special Agent in Charge, HSI San Francisco / NorCal. We know that money is the lifeblood of criminals as evidenced by the $1 million forfeiture, which is why it is a primary focus for HSI across all of our investigative programs. We appreciate the work of HSI personnel with FBI, USPIS, DEA, IRS-CI, USAO Eastern District, and Sacramento County Sheriffs Office who worked this multi-year case collaboratively and resulted in the substantial forfeiture of ill-gotten gains.

This case is the product of an investigation by Homeland Security Investigations (HSI), as part of the Northern California Illicit Digital Economy (NCIDE) Task Force, consisting of agents from HSI, the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the U.S. Postal Service Office of Inspector General, and the Drug Enforcement Administration. The NCIDE Task Force is a joint, federal task force focused on targeting all forms of dark web and cryptocurrency criminal activity in the Eastern District of California. Assistant U.S. Attorneys Robert C. Abendroth and Veronica M.A. Alegra prosecuted the case.

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Bitcoin ATM Company Forfeited Over $1 Million for Conspiring to ... - Department of Justice

As long-time readers will know, I have been encouraging readers to buy bitcoin since 2013. I continue to do so. Everybody should own some bitcoin. Its potential is too enormous to ignore, and I feel a percentage of everybodys portfolio should be allocated to it. If I had a bitcoin for every person who has come up to me and said how they should have bought it when they first heard me talking about it, but didnt, Id be richer than bitcoins founders.

By owning bitcoin you are effectively owning shares in perhaps the most technologically brilliant system of money in history. The technology is already becoming the template for national currencies in the form of central bank digital currencies (CBDCs), but as a supranational money for the borderless mediumthat is the internet, and with its capacity for micropayments, bitcoins potential scalability dwarfs that of national currencies.

With its finite supply, it has the potential to become a widespread online-savings vehicle for both individuals and corporations. Bitcoin benefits from its incredibly robust blockchain (the digital ledger that underpins the cryptocurrency). It is well established as the first and foremost cryptocurrency, making it easier to expand its network. Bitcoins Lightning Network, a blockchain-based technology, makes bitcoin transactions incredibly quick.

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Given all this, in a world of artificial intelligence (AI) and automated payments, it has the potential to become the default cash system for the internet, the standard on which internet monies, from the M-Pesa to Air Miles, are based. Why not have a piece of that potential pie?

If I look at the combined average IQ of people in the bitcoin sector and compare it with, say, gold mining, there is no contest. Bitcoin abounds with brain boxes. By owning bitcoin, you are effectively leveraging this extraordinarily high combined IQ.

I dont think it is going to the moon tomorrow. Bitcoin tends to go through a cycle. The first phase I call quiet accumulation, which is followed by frenzy and a blow-off top. Thirdly, there is the monster correction. Finally, we reach a stage of frustrating consolidation.

Were somewhere in phase four or one, although such phases can last a long time. But news broke a fortnight ago of what could prove a landmark court ruling for bitcoin. The Financial Times, traditionally sceptical about bitcoin, called it a big win.

The decision concerned the Greyscale Bitcoin Trust, which listed in the US in 2013 and buys and holds bitcoin. So in buying the trust investors are, in effect, buying bitcoin, or at least getting exposure to the bitcoin price. Greyscale now has something like $17bn under management.

However, investors cannot sell their shares and redeem them for bitcoin. They can only sell them to someone else. This means in effect that the trust cannot sell its bitcoin: the amount of bitcoin in the trust can only increase (as it issues more shares). At first the trust traded at a considerable premium to the bitcoin price: it was the only way investors could own bitcoin via a broker. At times Greyscale traded at double the value of its bitcoin holdings. However, in recent years this reversed, so that by December last year the trust was trading at a 50% discount to the bitcoin price. What was the point of owning the trust then, if it doesnt track the bitcoin price?

Greyscale had a problem. The solution was to convert the trust into an exchange-traded fund, so it would be able to buy and sell bitcoin according to the markets demand, thus accurately tracking the price. For years Greyscale has been trying to get permission. But the US financial regulator, the Securities and Exchange Commission (SEC), rejected its application.

The SEC has repeatedly ruled against other bitcoin ETF applications too. There have been so many. The Winklevoss brothers tried to get one listed. So did Cathie Wood. They were all rejected. There are at least half a dozen other proposals under consideration from the likes of BlackRock, WisdomTree and Fidelity. But it is clear that the SEC, like the UKs City regulator, the FCA, does not like crypto. Gary Gensler, chair of the SEC, has issued a plethora of regulatory actions against the likes of Coinbase and Binance. The latter is the largest crypto exchange in the world.

To be balanced, the SEC has approved ETFs based on bitcoin futures. But it has argued, not so unreasonably given its remit, that bitcoin trades on unregulated exchanges and can be prone to market manipulation.

A fortnight ago, however, a federal appeal court in Washington ruled that the SEC was wrong to reject the bitcoin ETF application Greyscale brought last year. The denial of Grayscales proposal was arbitrary and capricious because the Commission failed to explain its different treatment of similar products, said one of the three judges. The Grayscale appeal focused on one simple question: whether it could offer a spot bitcoin ETF that would expose retail investors to the real-time price of bitcoin.

The fact is that there is a lot of demand for a bitcoin spot ETF, not just in the US but worldwide. We shall see if the SEC now appeals, but the upshot is that a spot bitcoin ETF now looks a lot more likely. An ETF will open up entirely new markets for bitcoin both at the retail and the institutional level. It will bring a lot more money into bitcoin. With bitcoins limited supply, that has to be very bullish.

With a bitcoin ETF in the US, the FCA here in the UK will almost certainly have to reevaluate its anti-crypto stance, which has made it so difficult for UK investors to invest in this sector via traditional brokers. We shall see.

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Bitcoin's big boom has yet to begin - MoneyWeek