SBF trial underway, Mashinsky trial set, Binance’s market share shrinks

Top Stories This Week

Opening arguments begin in Sam Bankman-Fried trial

The trial of former FTX CEO Sam “SBF” Bankman-Fried kicked off on Oct. 4 in New York after jury selection began the previous day. Assistant United States Attorney Thane Rehn told jurors that SBF used FTX customer funds to enrich himself and gain credibility among politicians through donations. “The defendant blamed a downturn in the crypto market. But he had committed fraud. That is what the evidence in this trial will show. You will hear from his inner circle. His girlfriend will tell you how they stole money together,” Rehn said. SBF’s attorney Mark Cohen said the “girlfriend,” former Alameda Research CEO Caroline Ellison, and Changpeng Zhao, CEO of rival cryptocurrency exchange Binance, share some of the blame for the downfall of FTX. Check out our detailed recap on Sam Bankman-Fried’s first week at trial.

Alex Mashinsky’s jury trial scheduled for September 2024

Alex Mashinsky, former CEO of crypto lender Celsius, will be tried on charges of fraud and market manipulation in September 2024, a judge decided on Oct. 3. Mashinsky will remain free on $40 million bail, subject to travel and financial restriction, in the meantime. Celsius filed for bankruptcy in July 2022 and Mashinsky was arrested in July of this year. He is accused of defrauding investors out of billions of dollars. The United States Commodity Futures Trading Commission, Securities and Exchange Commission and Federal Trade Commission all have active suits against Mashinsky as well. Former Celsius chief revenue officer Roni Cohen-Pavon pleaded guilty to four criminal charges in September.

Binance spot market share drops for 7th consecutive month

Cryptocurrency exchange Binance is continuing to lose market share for the seventh month in a row. Analysts say HTX (formerly Huobi), Bybit and DigiFinex were the beneficiaries of Binance’s slide. According to an analysis by CCData reported by Bloomberg, Binance’s share of the spot market fell from 38.5% in August to 34.3% in September. On the derivatives market, Binance’s share fell from 53.5% to 51.5% in the same period. Ongoing struggles with regulators in the United States were identified as one cause of Binance’s market share decline, but they also pointed out the end of the exchange’s zero-fee trading promotion for major trading pairs and Binance’s withdrawal from the Russian market, which made up 7% of its traffic.

Alameda sent $4.1B of FTT tokens to FTX before crash: Nansen report

A report shared with Cointelegraph by blockchain data analyst Nansen shows that FTX moved $4.1 billion worth of its native FTT tokens to Alameda Research between Sept. 28 and Nov. 1, 2022. FTX and Alameda Research controlled around 90% of the FTT supply. Nansen suggested that the companies were using them to prop up each other’s balance sheets. FTX also transferred $388 million in stablecoin to Alameda Research during the same period. Data implied that Alameda Research would not have been able to go through with its offer to Binance CEO Changpeng Zhao to buy out that exchange’s FTT holdings at $22 on Nov. 6. Alameda Research CEO Caroline Ellison made the offer on X (formerly Twitter) as the two entities scrambled to control the turmoil sparked by revelations of irregularities in their balance sheets. FTX filed for bankruptcy days later.

Valkyrie backtracks on Ether futures contract purchases until ETF launch

Asset management firm Valkyrie said in a filing with the U.S. Securities and Exchange Commission (SEC) on Sept. 29 that it will not purchase Ether in advance of receiving approval for its exchange-traded fund (ETF). Valkyrie had previously told Cointelegraph that it planned on allowing investors exposure to ETF futures before launching its combined Bitcoin and Ether Strategy ETF in early October. Not only that, Valkyrie said it would sell the ETH futures it had already bought. Valkyrie is among several financial firms that are expected to begin offering ETH futures ETFs soon. The SEC has delayed decisions on several of them. Observers say it may be due to concerns about a U.S. government shutdown.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $27,880, Ether (ETH) at $1,640 and XRP at $0.52. The total market cap is at $1.07 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Trust Wallet Token (TWT) at 18.11%, Avalanche (AVAX) at 17.5% and Render (RNDR) at 17%. 

The top three altcoin losers of the week are ApeCoin (APE) at -9.5%, THORChain (RUNE) at -9.3% and Curve DAO Token (CRV) at -8.8%.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.