Bahamas Regulator Disputes FTX Claim about Value of Seized Crypto

Audy Castañeda
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<strong>Bahamas Regulator Disputes FTX Claim about Value of Seized Crypto</strong>

The Commission said the US FTX debtors’ calculations “were based on incomplete information”.

The Bahamas Securities and Exchange Commission has disputed FTX’s claim that the value of the cryptocurrencies it seized from the bankrupt crypto exchange was not $3.5 billion. The “continued lack of diligence by the new head of FTX in making public statements about the Commission is disappointing,” the Bahamian regulator stressed.

Bahamas Regulator and FTX Disagree on Value of Seized Crypto Assets

The Bahamas Securities and Exchange Commission issued a statement Monday to “correct material misstatements” made by FTX’s new CEO, John J. Ray III, regarding the value of cryptocurrencies it seized from FTX. Ray represents US FTX debtors in the cryptocurrency exchange’s bankruptcy filing (Chapter 11 Debtors).

The Bahamian regulator explained that on December 30, 2022, FTX and Ray “publicly challenged the Commission’s calculations” of the value of crypto assets transferred to their digital wallets on November 12. According to the Commission, more than $3.5 billion in cryptocurrency was seized from FTX. However, Ray argued that the value of the digital assets transferred on that date was actually around $296 million.

The Commission’s Statement

In its statement on Monday, the Commission said that the US FTX debtors’ calculations “were based on incomplete information”, stating the following:

“The Chapter 11 Debtors chose not to use their ability to request information from the joint provisional liquidators pursuant to an injunction of the Supreme Court of the Bahamas… The US debtors’ continued lack of diligence in making public statements about the Commission is disappointing.”

The Bahamas regulator alleged that FTX’s new CEO made false statements about the Commission in a court filing on December 12, 2022, “without evidence,” and again under oath, on December 13, before the House Financial Services Committee.

The U.S. Representatives regulator specifically mentioned the allegation that it asked former FTX CEO Sam Bankman-Fried (SBF) to mint “a substantial number of new tokens” during the cryptocurrency exchange’s bankruptcy proceedings.

The Commission added the following:

“Mr. Ray has not once approached the Commission to discuss any of his concerns before airing them publicly.”

Notably, Ray was named FTX’s new CEO and its head of restructuring when Bankman-Fried stepped down as the cryptocurrency exchange filed for bankruptcy. Ray, who also led Enron during the energy giant’s bankruptcy, said of FTX in November: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial information as it happened here.”

The Bahamas Securities and Exchange Commission further revealed that FTX’s new CEO did not respond to a letter issued on December 7th, in which the Bahamian regulator offered “cooperation with Chapter 11 Debtors.”

By Audy Castaneda

Indian Government Launches Cryptocurrency Awareness Campaign

Audy Castañeda
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<strong>Indian Government Launches Cryptocurrency Awareness Campaign</strong>

Said campaign will educate investors on the legality of cryptocurrencies in the country.

The Indian government is launching a cryptocurrency awareness campaign aimed at educating investors about the legality of cryptocurrencies in the country while also highlighting the risks of investing in crypto assets.

Cryptocurrency Campaign Details

The Indian government is reportedly launching a crypto awareness campaign, the first of its kind. It will be carried out by the Investor Protection and Education Fund Authority, a government agency controlled by the Ministry of Corporate Affairs.

ET quoted a government official as saying that the campaign “will highlight that cryptocurrencies are not legal in India, and that such assets also carry great risks. Any investment in which people are promised lucrative and assured returns, there is an element of high risk.”

The Indian government has been working on a crypto policy since 2019, but nothing has been finalized. India’s Finance Minister Nirmala Sitharaman said that the government plans to discuss crypto regulations with G20 members.

India’s central bank, the Reserve Bank of India (RBI), has long recommended an outright ban on all cryptocurrencies such as bitcoin and ether, warning of their potential to destabilize the country’s monetary and fiscal stability.

RBI Governor Shaktikanta Das recently said that the next financial crisis will come from cryptocurrencies if they are not banned. However, Sitharaman said that both the ban and the regulation require international collaboration to be effective.

Rajagopal Menon, vice president of Indian crypto exchange Wazirx, told The Hindu the following:

“Investing in cryptocurrencies can be a complex and risky undertaking, as the category is extremely volatile and runs around the clock. It is important that potential investors educate themselves thoroughly before making any decisions.”

Some Voice their Concerns

However, some are concerned that the Indian government’s crypto campaign could paint crypto in a poor light, as the Investor Protection and Education Fund Authority has conducted awareness campaigns about Ponzi schemes, chit funds, and dubious funding collective projects.

Vipul Kharbanda, a non-resident fellow at the Center for Internet and Society (CIS), was quoted as saying the following:

“If the government takes a heavy-handed approach and starts saying things like virtual currency isn’t legal in India, that won’t be entirely true. People may incorrectly assume that it is illegal.”

Both the Indian government and the central bank have said that cryptocurrencies are not illegal in India.

Despite having no regulatory framework for cryptocurrencies, the Indian government is taxing cryptocurrency income at 30%, and has imposed a 1% deducted at source (TDS) tax on cryptocurrency transactions.

Whether the Indian government’s cryptocurrency awareness campaign will help or hurt the cryptocurrency industry remains to be seen.

By Audy Castaneda

Gold Price Will Shoot to $3,800 While Silver Rise to $75 by 2023, Predicts Robert Kiyosaki

Audy Castañeda
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<strong>Gold Price Will Shoot to $3,800 While Silver Rise to $75 by 2023, Predicts Robert Kiyosaki</strong>

“Rich Dad, Poor Dad” author Robert Kiyosaki has shared his prediction for how high he thinks gold and silver prices will go in 2023.

The famous author of the best-selling book “Rich Dad Poor Dad”, Robert Kiyosaki, has predicted that the price of gold will skyrocket to $3,800 this year, while silver will hit $75. He also shared why he became “a golden bug” and “a silver nut.”

“Rich Dad, Poor Dad” is a 1997 book co-authored by Kiyosaki and Sharon Lechter that has been on the New York Times Best Seller list for over six years. More than 32 million copies of the book have been sold in over 51 languages ​​in more than 109 countries.

Gold and Silver Price Predictions for 2023 by Robert Kiyosaki

Kiyosaki tweeted the following on Thursday that ” silver will go to $75 and gold will go to $3,800 in 2023.”

He explained his involvement with gold as follows:

“I became a gold lover in 1972. I was a Marine pilot in Vietnam flying behind enemy lines, hoping to buy gold at a discount because the mine was in enemy hands. I found out that the price of gold is the same all over the world.”

The famous author also shared how he came to silver in another tweet last week: “I became a silver nut in 1964. I was looking at a dime and saw a coppery tint around the edge. I was only 17 years old, but I knew we were getting screwed with our money. Little did I know then that the US government violated Gresham’s Law, which states that counterfeit money drives out gold and silver.”

Last week, he warned investors that it could be their last chance to buy gold and silver at low prices. He expects the stock market to crash, driving up the prices of gold and silver. Currently, gold futures are trading at $1,835.30, while silver futures are trading at $24.24.

Kiyosaki on Financial Markets and More

Kiyosaki has said on numerous occasions that he does not trust the Biden administration, the Federal Reserve, the Treasury, and Wall Street.

He expects the stock, bond and real estate markets to crash, as the Federal Reserve continues to raise interest rates to combat inflation. He also thinks the US dollar is “toast.”

Besides gold and silver, Kiyosaki also recommends bitcoin. He recently said that bitcoin investors will get rich when the Federal Reserve spins up and prints trillions of “fake” dollars. The famous author also pointed out that he is a bitcoin investor, not a trader, so he gets excited when the BTC price hits a new bottom. On Saturday, he said he is buying more bitcoin, warning that the Securities and Exchange Commission (SEC) will crush most other cryptocurrencies with its regulations.

By Audy Castaneda

Bitcoin Genesis Block 14th Birthday Reflection

Audy Castañeda
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<strong>Bitcoin Genesis Block 14<sup>th</sup> Birthday Reflection</strong>

Fourteen years ago, Satoshi Nakamoto created the first block on the Bitcoin Blockchain, a movement that continues to expand today.

Fourteen years ago, Satoshi Nakamoto created the first block on the Bitcoin Blockchain. Whether consciously or not, that movement started a whole movement; one that continues to breathe and expand these many years later.

Etched into the Genesis block is Bitcoin raison d’etre, “Chancellor on brink of the second bailout for banks.”

The new financial paradigm began and only a handful of people recognized it at first sight, Bitcoin was a true financial revolution. This new system threatens the traditional financial system, by being decentralized and immune to censorship.

A Memorable January for The Genesis Block

Without realizing it, Satoshi Nakamoto would change the financial paradigm by creating a new concept of money and finance. Whether it be a group, a government or an individual, Nakamoto rose with Bitcoin as a legend of Web 2.0 that would later produce Web 3.0.

Nobody could imagine that an email would be sent anonymously on October 31, 2008. This small group that received it participated in an unstoppable movement. In this email, the foundations of the code that would give way to the Bitcoin Genesis block a few months later were being laid.

It should be remembered that on October 31, 2022, the crypto community celebrated the 14th anniversary of the publication of the Bitcoin white paper. It was on October 31, 2008 that Satoshi published the Bitcoin white paper, which was titled “Bitcoin: A Peer-to-Peer Electronic Cash System”.

Bitcoin’s original goal was to be “a purely peer-to-peer version of electronic money” that “would allow online payments to be sent directly from one party to another without going through a financial institution.”

Hal Finney, the person to receive BTC from Satoshi, wrote in 2008 that if Bitcoin were to one day become the “dominant payment system in use around the world”, each Bitcoin could be worth $10 million. On January 3, 2019, the Bitcoin network went live, with Satoshi mining the bitcoin genesis block (block number 0), which had a reward of 50 BTC.

A True Financial Revolution

The movement motivated millions of individuals, thus creating a collective that actively develops Bitcoin, and gave way to other cryptocurrencies.

Nakamoto’s project was very clear, to be able to send money over the Internet, in a peer-to-peer system, without financial institutions involved. It is certainly a revolutionary idea, and the use of cryptography to achieve it through the Blockchain ended up being a victory.

Nevertheless, the implications that Bitcoin has had for the world economy have not always been positive, as not all governments and companies seem to be happy with decentralization and peer-to-peer transactions.

By Audy Castaneda

Bitcoin Price Bottoms Out at $16K? Obstacle Post Earnings

Audy Castañeda
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<strong>Bitcoin Price Bottoms Out at $16K? Obstacle Post Earnings</strong>

Bitcoin price is trading at $16,700 with sideways movement in the last 24 hours, and the previous seven days.

The Bitcoin price is off to a slow start in 2023, as the cryptocurrency remains stagnant and moves sideways around its current levels.

Many experts believe that BTC has seen the worst of the recent bear cycle, and could be gearing up for some gains. Low trading volume, as well as low activity due to the holidays, contributed to the current price action.

Bitcoin Price Close to Bottoming, but Gains Still Elusive

According to analyst Caleb Franzen, the price of Bitcoin registered another indication of a bottom. Franzen and others have been tracking clues that could support a bullish thesis for BTC, and Heikin Ashi printed a positive sign.

Heikin Ashi is a technique for visualizing price action and creating Japanese candlestick charts to gauge trends in a market. Franzen claims that the Bitcoin price printed its 13th consecutive monthly Heikin Ashi on December 22.

The last time BTC saw a similar trend was at the end of the 2018 and 2015 bear markets. This data supports a positive outlook for the Bitcoin price, and points to upside potential in the coming months. The analyst stated the following:

“Each red streak has been longer than the last and we are currently building number 14 for January 23rd. Historically, a green monthly candle after more than 5 red monthly candles has marked the end of every bear market.”

As mentioned, Franzen and other metrics point to Bitcoin bottoming at its current levels. Crypto exchange Coinbase claims that 50% of BTC investors are losing.

In previous bear cycles, this metric reaching 50% coincided with a “sold base for a macro market fund,” the Coinbase report states.

According to Coinbase, “these represent important turning points for BTC performance, preceding subsequent periods of price appreciation, we believe this metric provides important insights into current cycle positioning.”

The Bitcoin price must break a sell wall of $14 million to $17,000 to take a first step in this direction. Additional data from Material Indicators states that this level is a major near-term hurdle for the cryptocurrency.

What Could Drive a New Bitcoin Rally?

As NewsBTC reported, the story is on the side of the bears. For the past two years and since 2015, the Bitcoin price had been trading lower during January, when it posted double-digit losses.

The start of a new year, low liquidity, and trading activity all contribute to this historical pattern. The elements for another red January are there, but the cryptocurrency could surprise if macroeconomic conditions improve.

The US Federal Reserve (Fed) is likely to continue its interest rate hike program, but representatives of financial institutions have hinted at a change in monetary policy. According to trading desk QCP Capital, if the Fed rushes and changes its approach, the Bitcoin price will benefit.

By Audy Castaneda

Crypto Is Here to Stay Despite Terrible 2022: WEF

Audy Castañeda
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<strong>Crypto Is Here to Stay Despite Terrible 2022: WEF</strong>

The report was written by Circle’s Chief of Strategy and Head of Global Policy, Dante Disparte.

In a Jan. 2 report, the international non-governmental and lobbying organization said that cryptocurrencies will continue to be an integral part of the “modern economic toolkit.”

The WEF acknowledged the calamitous previous year, calling it “terrible”, with more than $2 trillion wasted.

In addition, the Swiss-based political and economic forum accused regulators for failing to “create sensible regulations” but added that they have been vindicated for “multiple large-scale failures” in 2022.

Dante Disparte, Circle’s Chief of Strategy and Head of Global Policy, tweeted that “Following an annus horribilis for Crypto in 2022, now more than ever demonstrable utility value is the order of the day. Sharing my WEF reflections on what the future holds and how Circle is navigating turbulence.”

Positive WEF on Blockchain

Turning to the positives, the report compared the crypto contagion of 2022 to the fallout from dot coms in 2000, resulting in an evolution of the internet towards more enduring enterprises and business models.

“Perhaps 2022 will mark the handover of cryptographic technology and Blockchain infrastructure into firmer hands,” he added.

He stated that big banks and financial service providers need to be watched this year in their approach to cryptocurrencies, “Crypto adoption is equally inevitable, even if the term sounds like a dirty word. Despite all its flaws, this technology continues to be a protagonist in the global financial world.

The WEF stated that there are many examples of good technology being rigged by bad actors, however, with crypto, it has happened at great speed.

In fact, Crypto was spawned by anonymous trading on the dark web in years that were plagued by hacks and theft. Similarly, the early days of the Internet were plagued with viruses and scams, but email and the World Wide Web were not banned.

The WEF report further claims that “the countries that enable responsible competition will shape the future. Cryptography and Blockchains will continue to be integral parts of the modern economic toolkit, despite the great harm these tools may have caused when wielded by the wrong people.”

In conclusion, according to the report, technology will mature and flow into the hands of more responsible players within a strong regulatory framework. In other words, cryptocurrencies are here to stay.

Crypto Market Insights

It may be a while, though, before crypto markets and token prices recover. There is still very low volatility, with total capitalization hovering around the same level at $839 billion, according to CoinGecko.

There has been very little movement in either direction since mid-December, as consolidation continues into 2023.

Bitcoin was trading a bit from weekend levels at $16,686; meanwhile, Ethereum was up 1.5% at $1,214.

By Audy Castaneda

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