DailyCoin
Published Nov 08, 2022 10:26AM ET
Updated Nov 08, 2022 11:00AM ET
Crypto Flipsider News – Bitcoin under $20k; FTT Loses 16%; ByBit Alameda Proposal; DOJ Seize $3.36B BTC; FATF Crypto Gray List
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Following a remarkable first weekend in November where the price of Bitcoin surged past $21.4k for the first time in more than seven weeks, Bitcoin has fallen under the important $20k psychological level.
Bitcoin has lost 5.4% in the last 24 hours, and more than 9% in the last 2 days as insolvency rumours surrounding FTX and Alameda Research, two of the most prominent companies in the industry, flood the news.
The 24-hour price chart for Bitcoin (BTC). Source: CoinMarketCap
Despite Bitcoin losing its important $20k support, elongating its stay below $25,000 to 147 days, professional traders have refused to turn bearish for the asset. In healthy markets, three-month futures annualized premium ranges from +4% to +8%.
Through the rally and the proceeding decline, the Bitcoin futures premium remained below 2.5%. This data shows that derivatives traders have been neutral to bearish for the past week, remaining unmoved by Bitcoin’s failure to hold the $21,000 support.
h2 Flipsider:/h2
The data is confirmed by the Bitcoin fear and greed index remaining above the extreme fear region, holding at 31/100 despite Bitcoin’s sharp plunge.
h2 FTX Token (FTT) Falls by 16% in an Hour Amidst Fear of Alameda’s Insolvency/h2
FTX Token (FTT), the native token issued by the Sam Bankman-Fried-led crypto exchange, in the early hours of today took one of its biggest nosedives, falling by more than 16% in just one hour.
The 24-hour price chart of FTX Token (FTT). Source: CoinMarketCap
In the last 24 hours, FTT has lost more than 26% of its value, falling from $24 to $17. The rapid decline of FTT’s price can be directly linked to the fear, uncertainty, and doubt (FUD) spread by Changpeng Zhao, the CEO of the competing exchange, Binance.
On Sunday, November 6th, Zhao took to Twitter to announce that Binance was going to liquidate its FTT holdings worth $529 million, igniting insolvency rumours around FTX and Alameda Research, both owned by SBF.
Shortly after CZ’s comment, Caroline Ellison, the CEO of Alameda Research, announced that the company would be happy to buy all the FTT Binance holds at $22 apiece. However, today’s decline was ignited by CZ’s reply rejecting Alameda’s offer.
h2 Flipsider:/h2The FUD sparked by Zhao has taken a toll on SBF’s companies, as well as the entire crypto industry.
h2 ByBit’s BitDAO Token Plunges 25%, Community Issues Proposal for Alameda/h2
In the early hours of Tuesday, November 8th, BitDAO (BIT), the token launched by the decentralized autonomous organization (DAO) of the ByBit crypto exchange, took a sudden drop of more than 25% in one hour, from $0.4 to $0.3074.
The 24-hour price chart for BitDAO token (BIT). Source: CoinMarketCap
Reacting to the sudden drop in the price of BIT, BitDAO community members issued a proposal requesting Alameda Research to provide the on-chain address of the tokens that promised not to be sold for three years.
Alameda Research has responded to the requests of the BitDAO community, providing proof of funds showing that its treasury wallet holds the 100 million BIT tokens the company acquired in November last year.
h2 Flipsider:/h2The quick response from Alameda has helped quell concerns of a potential BIT dump, which has helped the price of the token recover to $0.3898.
h2 The U.S. Department of Justice Seized $3.36B in Bitcoin from Silk Road Theft/h2
On Monday, November 7th, the Department of Justice (DOJ) of the United States announced that it has seized $3.36 billion worth of Bitcoin stolen in the 2012 hack of the Silk Road dark web marketplace.
In the second largest financial seizure to date, the DOJ recovered more than 50,676 BTC during an unannounced raiding of James Zhong’s residence in November 2021. Zhong has pleaded guilty to wire fraud charges.
The authorities announced Zhong stole the bitcoin from Silk Road, an illegal marketplace on the dark web where users buy and sell drugs and other illicit products using crypto. The FBI shut down the Silk Road in 2013, two years after it launched.
Zhong took advantage of Silk Toad’s vulnerabilities in 2012 to execute the hack. Creating nine accounts, Zhong tricked Silk Road’s withdrawal-processing system to release approximately 50,000 bitcoins into his accounts.
h2 Flipsider:/h2The announcement highlights the increasing involvement of regulators in the crypto industry, and Zhong could serve multiple years for wire fraud.
h2 FATF to Include Cryptocurrencies as a Graylisting Factor for Countries/h2
As global crypto regulation becomes more relevant than ever, the Financial Action Task Force (FATF) looks to place countries that fail to comply adhere to anti-money laundering (AML) guidelines for cryptocurrencies on the “grey list.”
The international watchdog, which recently issued advice on AML and counter-terrorist financing (CTF) compliance to European Union Member States, is reportedly planning to ensure countries enforce crypto guidelines.
According to the report, the FATF will conduct annual checks to ensure countries are enforcing AML and CTF on crypto providers.
Countries on the FATF gray list are usually jurisdictions that need additional monitoring. However, graylisting affects a country’s overall rating and economic prospects.
h2 Flipsider:/h2While the FATF has no real enforcement authority, its observations are respected in the global community.
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Written By: DailyCoin
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