Alameda Research, Between Bribes and Losses

Leonardo Perez
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Alameda Research, Between Bribes and Losses

Caroline Ellison confirmed that Alameda Research allegedly bribed Chinese officials to unlock accounts. Aditya Barathwaj, a former programmer at the trading company, claims Alameda Research lost at least $190 million due to lax security practices.

Caroline Ellison continued her testimony yesterday, confronting the man who was her partner for several years. Former CEO of Alameda Research accused Sam Bankman-Fried of corruption, in connection with the Chinese government. The case dates back to 2020, when accounts linked to FTX and hosted on the OKX and Huobi platforms were frozen.

The accounts were suspected of being used for money laundering. Caroline Ellison explained that FTX/Alameda Research sent a large sum of money to high-ranking people in China to make this problem go away.

Still, according to the former CEO of Alameda Research, the FTX and Alameda teams considered several solutions to recover these accounts. which contained a billion dollars in cryptocurrency. In the end, David Ma, a member of the FTX teams who is Chinese, and who “had connections,” according to Caroline Ellison, was able to find people to send this sum to.

Meanwhile, Sam Bankman-Fried’s Alameda Research lost at least $190 million due to lax security practices, a former programmer at the trading company claims.

Aditya Barathwaj recalled that after the collapse of FTX and its subsidiary Alameda, there was a lot of talk about the deficiencies of the risk management structures in both companies. John Ray, who ran the exchange during the bankruptcy, called the situation “a complete failure of corporate control.”

FTX and Alameda Knew They Had to Cover Their Tracks

David Ma and Caroline Ellison allegedly made transfers of 100 to 150 million dollars in cryptocurrencies, which allowed the accounts in which the money belonging to FTX was present to be unlocked. Such situation, though, would have caused the departure of a trader from Alameda Research, who refused to be associated with these events.

At that point, FTX and Alameda Research were obviously already covering their tracks. Sam Bankman-Fried allegedly ordered colleagues to use the Signal messaging service to discuss sensitive topics, which could be deleted after a week. Caroline Ellison also showed notes taken at the time, written vaguely so as not to arouse suspicion.

His former partner as well as FTX co-founder Gary Wang pleaded guilty and agreed to cooperate with the prosecution, in exchange for a reduced sentence. Caroline Ellison faces up to 110 years in prison.

Former Alameda Employee Spoke About Company’s $190 Million Loss Due to Negligence

Yesterday, Aditya Barathwaj posted on X the following:

“SBF believed that the single most important thing for a startup like Alameda or FTX was being able to move very, very fast

So much so that he decided to ignore engineering and accounting practices that are considered standard at tech companies and financial services firms.”

According to him, this approach has effectively enabled development at “breakneck speed.” But the downside was the security incidents that occurred every few months.

In one case, an Alameda merchant was subjected to a phishing attack, as a result of which the company lost $100 million. While trying to complete a DeFi transaction, the employee clicked on a fake link, which Google search showed at the top.

Barathwaj emphasized that there were many more similar cases, even before he joined the company. Alameda responded throughout, implementing fixes to its security and risk management systems on the fly. Barathwaj previously revealed he had caused the Bitcoin rate to drop by 87% on the Binance.US platform in 2021.

By Leonardo Pérez

Spain: Government of Galicia Uses Blockchain Technology for Sustainable Forest Management

Audy Castañeda
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Spain: Government of Galicia Uses Blockchain Technology for Sustainable Forest Management

The PEFC and the Xunta de Galicia, in Spain, seek to advance sustainability and forest certification through the use of blockchain technology. In this way, work is being done to promote forest traceability using the guarantee of blockchain technology in Galicia, Spain. This is a leading example of how blockchain technology and forest certification can come together to drive sustainability in the forestry sector.

The PEFC (Programme for the Endorsement of Forest Certification) and the Xunta de Galicia have joined forces to advance sustainability and forest certification in the region through the use of blockchain technology.

In a recent meeting between Ana Belén Noriega, General Director of PEFC Spain, and José Luis Chan, General Director of Forest Planning and Management of the Xunta de Galicia, key issues related to forest planning, sustainable management and certification of Forest products.

Improving Environmental Management through Blockchain Technology

In line with the objectives of the Galician Forest Plan 2021-2040, which seeks to achieve carbon neutrality and promote the sustainable management of forests, the Xunta de Galicia has decided to resort to certification using blockchain technology to guarantee the traceability and authenticity of its forest domain.

One of the key objectives of this plan is the certification of 500,000 hectares of forests in Galicia by 2035. Thanks to the joint efforts and financial support of the Xunta, a significant increase has already been achieved, with 25,000 hectares PEFC certified in so far this year.

In addition to forest certification, the Xunta de Galicia is working to promote the use of wood as a structural material in construction. Wood, a renewable natural resource, can play a critical role in reducing the carbon footprint of construction.

To support this initiative, the Xunta will publish the “Guide for the promotion of wood in public procurement”. This will be a resource aimed at helping public administrations to include environmental criteria that promote the use of wood in their projects. This will not only benefit the construction sector but will also drive demand for sustainable forest products.

Blockchain Technology for Forest Traceability in Galicia

One of the most exciting innovations in this collaboration is the implementation of blockchain technology in the forestry value chain. The Xunta de Galicia is working on promoting forestry traceability using the guarantee of the blockchain, through the Fortra platform.

This is an important step to ensure that forest products are traceable from their origin in the forest to their final destination. In this way, blockchain technology is used for environmental sustainability.

PEFC is leading the innovative project called “Forest Operational Group 3.0”, which focuses on the modernization of the forestry sector through digitalization and remote sensing. This project will greatly contribute to the traceability of the forestry sector in Galicia and will guarantee the sustainable management, biodiversity and resilience of forests.

Spain: PEFC Certification in Galicia

The commitment to certification is not only reflected in forests, but also in public management. The Xunta manages 624 forests with PEFC certification, mostly neighborhood forests in collaboration with the Galician government. This represents close to 40% of the land certified in Galicia by PEFC, which demonstrates a strong commitment to sustainable management.

The collaboration between PEFC and the Xunta de Galicia is a leading example of how blockchain technology and forestry certification can come together to drive sustainability in the forestry sector. This effort benefits the environment and the local economy, while establishing a model for other regions seeking to move towards a more sustainable future.

By Audy Castaneda

New UK Crypto Rules: How Binance and Coinbase Are Adapting to Regulatory Changes

Leonardo Perez
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New UK Crypto Rules: How Binance and Coinbase Are Adapting to Regulatory Changes

The United Kingdom is launching new rules on financial and cryptocurrency promotion.

Two crypto industry giants, Binance and Coinbase, have recently adjusted to align with UK crypto regulations to continue operations in the country. These changes are pivotal in the crypto industry’s journey as countries struggle to integrate digital assets into their financial systems around the world.

The FCA’s Position on Cryptocurrencies

The Financial Conduct Authority (FCA), the UK’s financial regulator, has been outspoken about its concerns regarding cryptocurrency investments. The authority classifies these investments as high risk, taking into account their potential for significant financial losses.

CryptoBusy, a prominent Bitcoin analyst, recently shared these sentiments on X (formerly known as Twitter). The publication underlined the FCA’s warnings about the inherent complexities of digital asset investments, highlighting potential obstacles such as the absence of regulatory protections and difficulties in liquidating investments when desired.

Additionally, the FCA suggests that investors act carefully and diversify their portfolios rather than putting all their financial eggs in one basket. “”Due to the potential for losses, the Financial Conduct Authority (FCA) considers Crypto investment to be high risk,” quotes CryptoBusy.

How Binance and Coinbase Are Responding

Given these guidelines, Binance and Coinbase have quickly adjusted their offerings for the UK market. In its recent announcement, the former clearly stated that cryptocurrency investments would not benefit from the protection of the Financial Ombudsman Service or the Financial Services Compensation Scheme.

Binance has taken additional steps to ensure regulatory compliance by limiting certain services to UK Professional Clients. Among these restricted services are spot trading of over 350 cryptocurrencies and the ability to transact non-fungible tokens (NFTs).

Coinbase, on the other hand, echoed similar sentiments by urging UK-based investors to proceed with caution. They advised potential investors not to venture into the crypto space unless they are fully prepared to endure potential losses, emphasizing the high-risk nature of digital asset investments.

In a recent statement on its blog, Binance reported the launch of a new exclusive domain for British users in an attempt to comply with the new regime of the United Kingdom Financial Conduct Authority (FCA).

Through the new UK domain, the exchange will ensure that it offers local retail users only certain products and services that are permitted under the latest regulations. These will include spot and margin cryptocurrency trading, Binance Pay, the non-fungible token (NFT) marketplace, lending and others, according to the notice.

According to Binance, the newly established UK domain, www.binance.com/en-GB, ensures that only services that comply with current marketing regulations can be accessed. This encompasses services such as fiat and crypto transactions, spot trading, margin trading, Binance payment, and cryptocurrency-backed loans. Conversely, certain Binance offerings will be off-limits to UK users, including features such as Binance gift cards, academia, research, feeds, and referral bonuses.

What Are the New FCA Rules?

The new updates require exchanges to provide fair warning to customers about the risks involved in cryptocurrency investments. Marketing material must be “clear, fair and not misleading” and include a 24-hour cooling-off period for new customers.

While the regulator extended the deadline to implement technically difficult features such as the cooling-off period until January 2024, it requires companies to adhere to the “fundamental rules” from October 8.

Non-compliance will be considered a “criminal offense punishable by an unlimited fine and/or up to two years in prison” for domestic and foreign exchanges operating in the United Kingdom, the agency said in a recent statement.

By Leonardo Pérez

Shiba Inu, Tradecurve Markets and Dogecoin Advance, But Why Are Traders Diversifying with TCRV Only?

Audy Castañeda
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Shiba Inu, Tradecurve Markets and Dogecoin Advance, But Why Are Traders Diversifying with TCRV Only?

Shiba Inu grows fueled by Shibarium, Dogecoin faces challenges with hope for improvement, and Tradecurve Markets innovates in the global derivatives market.

Shiba Inu (SHIB) has shown a surprising spike up the chain as the broader market experiences selling pressure. The success of the Shibarium network has fueled this growth. Furthermore, the price of Dogecoin (DOGE) fell as the cryptocurrency market continued to face adverse conditions.

However, there is hope that it could escalate soon, according to analysts. Additionally, Tradecurve Markets (TCRV) will combine the best elements of CEXs and DEXs. It will allow anyone around the world to enter the derivatives market.

Shiba Inu (SHIB) Soars Following Shibarium Success

The total cryptocurrency market capitalization decreased by 0.59% in the last 24 hours, but the 24-hour volume increased by 6.64%. One of the cryptocurrencies that led these statistics and is currently trending is Shiba Inu (SHIB).

This momentum has been fueled by the success of its Layer 2 solution, Shibarium. The network reached 3.38 million transactions and 1.25 million wallet addresses. Consequently, the Shiba Inu crypto could soon increase in value.

Over the last seven days, Shiba Inu traded between $0.00000682 and $0.00000730. It remains the 18th largest crypto with a market capitalization of $4,057,237,868. However, according to the Shiba Inu price prediction, it may skyrocket to $0.00001078 by the end of 2023.

Dogecoin (DOGE) and Its Hope to Rise to $0.098

Dogecoin (DOGE), Elon Musk’s top memecoin and favorite crypto, remains among the top 10 cryptocurrencies by market capitalization despite its poor price performance. In particular, the Dogecoin price has been volatile in the last week.

Dogecoin (DOGE) has fallen as it follows broader market momentum. However, the Dogecoin community is still hopeful that X, formerly Twitter, will introduce cryptocurrency payments. If it does, then DOGE could witness a huge comeback in terms of its value.

Dogecoin’s 30-day EMA has been comfortably below the 200-day average for over a year. However, over the past week, DOGE was trading at $0.058319 on the low end and $0.061967 on the high end. Furthermore, analysts are optimistic about its future. According to the current Dogecoin price prediction, it may skyrocket to $0.098 by the end of the year.

Tradecurve Markets (TCRV) Combines the Best Elements of CEXs and DEXs

In addition to Shiba Inu and Dogecoin, another cryptocurrency has also captured a significant portion of investor attention. Tradecurve Markets is an upcoming hybrid trading platform that will combine the best elements of CEXs and DEXs.

The platform will create a completely optimized experience. It is a comprehensive platform where anyone can trade derivatives and cryptocurrencies. All of this will be accessible without the need for them to undergo any KYC procedures. Additionally, they can deposit crypto and then use it as collateral when trading.

Beyond ease of use, Tradecurve Markets will also feature unique trading tools. For example, there are AI-powered trading bots and a Copy Trader infrastructure. In addition, it also has a VIP account system and protection against negative balances.

Investors can also access high leverage, starting at 500:1. Now, the project is in Stage 6 of its pre-sale, in which it is trading at just $0.03. This marks a 200% jump in value since the start of the pre-sale. According to analysts, the crypto is projected to skyrocket up to 35 times upon launch.

By Audy Castaneda

Volatility or Indifference? Possible Bitcoin Reactions to the Israel-Palestine Conflict

Leonardo Perez
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Volatility or Indifference? Possible Bitcoin Reactions to the Israel-Palestine Conflict

Experts from the crypto world analyze the possible reactions of the Bitcoin price to the new outbreak of violence in the Middle East.

During wars and other types of unexpected geopolitical events and conflicts, financial assets tend to react in different ways. The military conflict that is now in the spotlight is between Israel and Palestine and experts evaluate possible reactions of the price of Bitcoin.

The conflict between Arabs and Israelis is not new at all. It dates back 75 years when Israel’s illegal occupation of Palestinian territories began after the Second World War.

Such dynamics continued until a few days ago, when the Hamas group decided to counterattack. Although the conflict is old, it now seems to move to a new stage that could have an impact on the financial markets.

Possible Reactions of Bitcoin and Other Assets

Leaving the battlefield (armed and political), the truth is that conflicts have an impact on financial assets. In that sense, depending on what happens in the coming days, the price of Bitcoin would have some possible reactions.

Israel and Palestine do not have as much weight in the world of raw materials as Russia and Ukraine. Thus, no major changes are expected in the price of oil, gas and other assets. However, at least in Israel, there is an active digital currency market and it is a field for innovations in the sector.

Considering this, one might think that digital currencies could have a notable reaction to the conflict. On the other hand, the fact that the Israeli market is small and its active population in terms of crypto trading is small is highlighted.

Experts from the financial sector affirm that the crypto market will have a reaction. However, Bitcoin’s possible reactions to the conflict would not last longer, but would be limited to volatility that would quickly fade. The latter is the position of the cryptanalyst, Miles Deutscher, expressed in his X account.

“Data suggests that markets typically recover quickly from wars and other geopolitical shocks, despite experiencing initial volatility.,” he wrote.

Therefore, it is to be expected that the development of the conflict in the coming hours will lead to certain sudden movements. However, it would not take long for the crypto market to return to its current state.

The Possibility of Other Countries Involved

The ramifications of the Palestine-Israel conflict are notable and several players with great geopolitical weight in the Middle East area participate in it. Some of these, such as Iran, have considerable participation and influence in various markets, including cryptocurrency mining. In that sense, the digital mining industry is one of the main pillars of the Persian country when it comes to supporting US sanctions.

If the conflict spills over the borders of Israel and Palestine, all financial markets would panic. Iran is the key to this whole matter. Aside from being one of the global epicenters of Bitcoin hash power, the country is one of the world’s largest oil and gas holders. At the same time, the country has sovereignty over the Strait of Hormuz, where the vast majority of maritime trade between East and West takes place.

In geopolitical terms, Iran’s alleged involvement in the war in Ukraine has been key to causing NATO’s slowdown against Russia. That said, it can be understood that Bitcoin’s possible long-term reactions would have a lot to do with an overflow of the conflict in the Middle East.

By Leonardo Pérez

Bitcoin Dominance Surpasses 50% as Altcoins Lag Behind

Audy Castañeda
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Bitcoin Dominance Surpasses 50% as Altcoins Lag Behind

Bitcoin market share hit a 3-month high amid underperformance of altcoins. Despite that, geopolitical tensions could cause wild fluctuations.

On-chain data shows that Bitcoin market shares have surpassed 50%, the highest level in the last three months. The price of the largest cryptocurrency is around $27,590, up almost 7% in a month.

The new war in the Middle East seems serious. There may be consequences at the regional level. At the moment, cryptocurrencies are under pressure. However, with the arrival of an American carrier strike group, it is unknown how things will develop.

BTC Dominance Strengthens

While Bitcoin’s dominance strengthens, Ethereum and other altcoins have faced setbacks. The second-largest cryptocurrency has seen a drop in its market dominance, going from 19% to around 17% in recent months. Other altcoins have been under enormous selling pressure in recent days.

Ethereum has faced an avalanche of criticism for its increased centralization following the Merge and Shanghai upgrades.

A recent JPMorgan study found that while these updates led to an increase in staking activity, Ethereum has become more centralized since then. The bank also expressed concern about declining betting returns and the risk of remortgage.

MN Trading CEO and founder Michaël van de Poppe said altcoin prices were heavily affected by selling pressure.

The crypto analyst suggested that if Bitcoin managed to climb back above the $28,000 price, it could lead to a price move that would reach between $35,000 and $40,000. He believed that an uptrend could be in play if the price of Bitcoin surpassed $28,000.

According to Glassnode’s Bitcoin Entity Balance Dominance, the dominance of the smallest Bitcoin holders, “shrimps” and “crabs,” is now 10.8% and 6.9%, respectively. The predominance of exchange entities is 11.8%.

However, the power of the currency balance is declining while smaller groups such as crabs and shrimp are gaining more control. This change in ownership dynamics indicates that smaller-scale investors are increasingly accumulating a larger share of the Bitcoin market compared to larger entities such as exchanges.

Bitcoin Volatility May Return

Rumors previously circulated that October would be “Uptober”, but ongoing geopolitical disputes between Israel and Palestine could trigger price volatility. Additionally, rising crude oil prices have put liquidity pressure on Bitcoin and other cryptocurrencies.

Cryptocurrency analyst Miles Deutscher suggested that while there may be initial turbulence in the markets, historical data indicates that they tend to recover relatively quickly after military conflicts. He noted that, in most cases, markets began to show positive trends after three months of uncertainty.

Bitcoin’s price movement may show increased volatility during this period as it has shown a correlation with the S&P 500 index. Additionally, a report from Bitfinex Alpha suggests that Bitcoin’s historical daily volatility remains above its moving 200-day average, indicating the potential for further price fluctuations.

“Bitcoin has been more volatile on average than the last 200 days in the asset’s history,” since the beginning of the month, according to the firm.

Another key event this week is the release of macroeconomic data, including the September Consumer Price Index (CPI) on Thursday. The US Federal Reserve (Fed) can raise interest rates if inflation remains above its target. Changes in interest rates in major economies can have a ripple effect on the broader economy, which can ultimately affect the cryptocurrency market.

By Audy Castaneda

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