Crypto Market Overview February 21th | Dex-Trade
Nishad Singh Makes Deal With Prosecutors Against SBF
According to Bloomberg, the former head of development for the bankrupt FTX, Nishad Singh, is in talks over a deal with the Manhattan prosecutor's office and is ready to plead guilty to criminal charges of fraud “under the direction” of notorious crypto exchange founder Sam Bankman-Fried (SBF). The plea deal involves a criminal deal between the prosecutor and Singh in which the former head of development agrees to plead guilty to lesser charges, in return for which the court agrees to issue a lighter sentence. Recall that in January, Singh attended a meeting with prosecutors, in which prosecutors tried to determine whether he had any valuable information that could be used in the case against SBF. And, apparently, the former FTX employee was still able to “interest” the representatives of the prosecutor's office. If Singh's plea deal goes through successfully, he will become the third senior FTX executive to plead guilty to fraud charges and provide evidence against SBF. Last year, FTX co-founder Gary Wang and Alameda Research CEO Caroline Ellison pleaded guilty to being involved in the collapse of the cryptocurrency exchange.
Stuart Alderoty Accuses SEC of Bullying Crypto Companies
Ripple’s legal counsel, Stuart Alderothy, wrote a tweet in which he once again accused the U.S. Securities and Exchange Commission (SEC) of using tactics to scare crypto companies. He recalled that the SEC has lost four of the last five cases in the Supreme Court and expressed his opinion that the winners were those companies whose management had the courage and resources to fight back against the Commission's lawyers. Alderoti's recent tweet was a logical continuation of his consistent criticism of the SEC's approach to regulating cryptocurrencies. In September 2022, he accused the Commission of orchestrating a “political power grab” and dismissed the idea that cryptocurrencies require special rule-making. Alderothy also argued that the SEC's strategy is to “lash out” at various projects using the basics of its indiscriminate “regulation through enforcement” approach. Thus, representatives of the Commission, headed by Gary Gensler, intend to expand their influence beyond the sphere of securities. By the way, in early February of this year, Alderoti explained the actions of Chairman Gensler, suggesting that he may be limited by “political liability” on the part of Joe Biden due to his tough anti-crypto stance. So Alderoti reacted to a series of enforcement actions by the SEC in relation to the Kraken crypto exchange. Recall that at that time the trading platform was forced to exclude the function of crypto-staking, and its management was fined $30 million.
“FTX Poked the Bear, and it Is Pissed”: Kevin O'Leary on Regulators
In an interview with TraderTV Live, Shark Tank investor and venture capitalist Kevin O'Leary urged cryptocurrency exchanges to “get on board with regulation” as the only way to “calm down” Gary Gensler and the U.S. Securities and Exchange Commission (SEC): “You got to get on board with regulation, you got to stay out of the way of Gensler at the SEC and other regulators. Those hombres [men] in Washington are not happy. FTX poked the bear, the bear is awake, and it is pissed.” O’Leary believes that US senators are tired of meeting every six months as soon as the next cryptocurrency company goes bankrupt, and its investors are left without financial compensation. In his opinion, it is completely impossible to regulate the industry, so weak projects will continue to issue useless tokens. Therefore, a reputable investor believes that regulated trading floors will remain the best target for investors, and their estimated value will grow for at least a few more years. That said, O'Leary continues to defend the infamous FTX founder, Sam Bankman-Freed, and says he should be held innocent of the market crash and its massive aftermath, at least until a court proves otherwise.
