Sam Bankman-Fried, the detained founder of the bankrupt crypto exchange FTX, reportedly signed documents on 20 December that will see SBF handed over to Federal Bureau of Investigation (FBI) agents and taken to the United States, where he will face criminal charges.

Bankman-Fried was [reported](https://cointelegraph.com/news/sbf-signs-extradition-papers-set-to-return-to-face-charges-in-the-us) to have agreed to be [extradited](/news/article/former-ftx-ceo-sbf-arrested) to the US just hours after his lawyer told a judge in the Bahamas that he was not ready to consent.

## SBF is to be taken to the US to face criminal charges

According to Bahamas Acting Commissioner of Corrections Doan Cleare, Bankman-Fried signed his surrender documents on Tuesday. Today, SBF will sign separate papers finalising his waiver of rights to fight extradition at the Magistrate's Court in Nassau.
[Bankman-Fried](/news/article/sam-bankman-fried-lost-billions) is expected to be accompanied by FBI agents on a private flight back to the US, where he faces eight counts in an accusation by the US Attorney for the Southern District of New York. 

According to the [New York Times](https://www.nytimes.com/2022/12/20/technology/sam-bankman-fried-bail.html), Bankman-Fried's legal team is negotiating with federal prosecutors to allow him to be released on bail if he is extradited to the US.

According to sources, the agreement, which requires the approval of the federal judge overseeing the SBF case, could include highly restrictive conditions such as home custody and electronic monitoring.

## Allegations on SBF 

The Department of Justice has accused SBF of campaign finance violations, commodities and securities fraud, conspiracy to commit wire and money laundering, and wire fraud.

If found guilty of all charges, he could face up to 115 years in prison.

[The Commodity Futures Trading Commission and SEC (Securities and Exchange Commission) have filed additional charges](/news/article/ftx-boss-denied-bail-in-bahamas) against the founder of FTX for allegedly breaking commodity laws and defrauding investors.

After three years of rapid growth, FTX and numerous related companies filed for bankruptcy last month. The exchange was worth US$32 billion at its peak.

Authorities in the Bahamas and the US continue to investigate the involvement of SBF in FTX's collapse last month. The exchange was headquartered in the Bahamas.



SBF Agrees to Return to US to Face Fraud Charges

Karl Sebastian Greenwood, the co-founder of the fraudulent cryptocurrency OneCoin scam, has pleaded guilty to charges brought by the United States Department of Justice (DoJ).

[He faces a maximum of 60 years in prison](https://cointelegraph.com/news/4b-onecoin-scam-co-founder-pleads-guilty-faces-60-years-jail) if convicted of all charges. The DoJ said on 16 December that Greenwood had entered a guilty plea in a federal court in Manhattan to charges of money laundering conspiracy, money laundering conspiracy, and wire fraud conspiracy. Each charge carries a maximum potential sentence of 20 years in prison.

With the OneCoin scam, Greenwood is alleged to have operated "one of the greatest worldwide fraud schemes ever committed", according to US Attorney Damian Williams. 

## OneCoin Scam Promoted as a 'Bitcoin Killer'

Williams further asserts that Greenwood promoted the OneCoin sam as a "Bitcoin killer" despite the tokens being "totally worthless". Greenwood and "Cryptoqueen" Ruja Ignatova were the founders of OneCoin. It was a Bulgarian company that sold a cryptocurrency with the same name, and Greenwood was the CEO of the OneCoin scam.

According to emails that the DoJ collected between the two parties before the company's establishment in 2014, the individuals referred to it as a "trashy currency". Outwardly, it appeared to be a multi-level marketing company, with members earning commissions for allegedly selling cryptocurrency bundles containing OneCoin and the capacity to mine more cryptocurrency. This was the company's stated intention.

OneCoin could only be converted into fiat currency through the Xcoinx exchange, a private platform. It was a [combination of a pyramid and a Ponzi scheme](/news/article/bitcoin-motion-trading-bot-scam) since investors could bring in new members without a tangible product on offer. Later investors were compensated with the money from the initial investors. 

According to the DoJ, Greenwood's position as the "global master distributor" of the fake cryptocurrency enterprise resulted in him collecting around $21.2 million (€20 million) monthly. On 5 April, 2023, Greenwood is scheduled to appear in front of District Judge Edgardo Ramos to receive his punishment.


red onecoin store boarded up with karl sebastian greenwood in foreground

OneCoin Scam Co-Founder Admits Fraud

Former US President and crypto critic [Donald Trump has launched his own NFT collectible](https://collecttrumpcards.com/) project, and the move has perplexed the crypto community.

Even conservatives and adamant MAGA supporters are baffled. Analyst Eric Wall compared the Trump NFT project to a "SimpDAO".

The word "SimpDAO" was coined after social media sensation Irene Zhao introduced IreneDAO. The NFT project gives 'Simps', or admirers, an opportunity to connect over their love for Trump while also receiving perks like one-on-one dinners and Zoom calls.

## Donald Trump NFT tokens unveiled

On Thursday, the former president made a "major announcement" through his social media platform, [Truth Social](https://truthsocial.com/). He unveiled a collection of 45,000 NFT [trading](/news/article/tradingview-uk-101) cards with artwork that featured himself in various outfits, such as superhero costumes, golf attire, and hunting gear.

He described the NFTs as containing incredible artwork about his life and career and that buying one is an entry to "a very exclusive community".

The [Polygon](/news/article/polygon-bridge-guide)-based NFTs cost $99 per token. Purchasers automatically enter sweepstakes with "thousands of prizes", including one-on-one dinners in Miami, Zoom calls, and rounds of golf with Trump. The tokens can be purchased using [ETH](/news/article/ethereum-price-in-uk) or fiat currency.

## Digital collectibles promotion

The former world leader urged fans to purchase the so-called Trump NFT tokens, which he expressed as "much like a baseball card", for "only" $99 each.

In a brief clip, he said, "America needs a superhero!" while loud music from Marvel World played in the background.
An animated version of the ex-president then appeared, posing in front of Trump Tower before tearing open his formal attire to reveal a muscular chest and a red T-logo bodysuit.

## Fan's reaction to "major announcement"

Critics on social media were amused and shocked by the announcement. Some people thought the ex-president might reveal details of his 2024 presidential election bid or other significant campaign announcements. While Trump's polarising moves are frequently embraced by his supporters, a surprising number of them have not supported him in this case.



pink image of nft motherboard. Donald Trump and USA flag in foreground. 

Trump NFT Collection Raises Eyebrows

The US fintech company [ZELF](https://zelf.co/) has launched a new Visa debit card that gives users a [crypto payment option](/news/article/best-crypto-card-uk) with anonymity.

The newly unveiled card can be used at more than 80 million Visa locations around the globe.

It also allows users to open a USD checking account easily. It only requires your name, phone number, and email address. As a result of this, users don't have the hassle of providing a long list of documents. You can create accounts without providing proof of address or social security number (SSN).

![zelf.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/zelf_9aa5caf3db.png)
 
ZELF’s virtual debit card is compatible with both [Google Pay](https://pay.google.com/) and [Apple Pay](https://www.apple.com/apple-pay/). The company claims that users can open an account within 30 seconds. They can also recharge the cards with both fiat and crypto. In cryptocurrencies, the currently available options include [Ether](/coins/eth), [USD Coin](/coins/usdc), and [Tether](/coins/usdt). However, users will likely have more than 20 other tokens in the coming years.

## ZELF and Visa collaboration

[Visa](https://usa.visa.com/) is one of the leading digital payment networks. Recently, it has been active in the fintech field and partnered with several firms. It has worked with many famous names in the industry, such as Chime, Airwallex, Finaxar, and others, to introduce innovative financial products.

Now, it has collaborated with ZELF - Bank of the Metaverse for this anonymous debit card. With the launch of this product, both companies are looking to provide a private and secure channel for [crypto payments](/news/article/blockonomics-explained). 

They have also reduced the verification requirements to promote digital asset adoption. The product is likely to attract new audiences and make crypto transactions more accessible for them.

The Chief Executive and Founder of ZELF, Elliot Goykhman, also believes that they can reach a "global unbanked population" because of lesser verification requirements. It will give them access to innovative and advanced financial services.


visa debit card and zelf fintech logo in blue and black

ZELF Launches Crypto-enabled Debit Cards

The ongoing [Celsius](/news/article/celsius-data-breach) bankruptcy case saw a new development this week as US judge Martin Glenn delivered a ruling. He issued a direction that the firm must pay back $50 million worth of crypto assets to users' custody accounts. 

The ruling during the hearing on Wednesday came after [Celsius](https://celsius.network/) stakeholders and advisers concluded that custody assets belong to customers, not the company.

## Verdict applies to $44 million custody assets

As per the [filing](https://cases.stretto.com/public/x191/11749/PLEADINGS/1174909012280000000022.pdf) that was made in September, the company owes roughly $44 million. However, that is said to represent only a small portion of the total debts of the firm.

The filing also shows that the company has around 58,300 users with about $210 million in withholding and [custody accounts](/news/article/celsius-network). The recent ruling by Judge Glenn applies only to the custody assets of 15,680 users.  

## Pending decision on interest-bearing accounts

Earlier, the bankrupt crypto lender also asked for the judge's consent to sell $18 million worth of virtual assets from interest-bearing accounts. The users deposited the amount in these accounts before the lender filed for Chapter 11 bankruptcy. However, Judge Glenn is yet to give a verdict on this request. 

The US judge says he wants the Celsius bankruptcy case to move forward as quickly as possible. According to a [Bloomberg report](https://www.bloomberg.com/news/articles/2022-12-07/celsius-judge-orders-return-of-user-crypto-worth-50-million?sref=17Td6NBb&leadSource=uverify%20wall), he also announced that he wants creditors to get back "as much as they possibly can" and "as soon as they possibly can".

This pending decision is crucial for the case because Celsius might claim these assets. There were more than $200 million in custody accounts in September. However, a large part of the holdings was transferred from the interest-bearing funds just before the company filed for [bankruptcy](/news/article/celsius-bankruptcy-protection). That’s why the rules of preferential transfers may benefit the company. This decision could also set a legal precedent in bankruptcy cases.



red picture with celsius logo and the word "bankrupt"

Celsius Bankruptcy: Judge Orders Return of $50m

The chairman of CFTC, the United States Commodities and Futures Trading Commission, Rostin Benham, declares that Bitcoin (BTC) is the only commodity cryptocurrency. He could have backtracked on his previous assertions about Ether (ETH), suggesting it could be a security.

## CFTC Flip-Flopping on Commodities 

Benham aired [his thoughts](https://fortune.com/crypto/2022/11/30/inaction-is-paralysis-cftc-chair-rostin-behnam-calls-for-regulation-in-the-wake-of-ftxs-collapse/) when he spoke about the future of crypto regulation at an invite-only event at Princeton University. The industry is still reeling from the aftershocks following the bankruptcy filing and subsequent [collapse of FTX](/news/article/ftx-collapse-blockfi-suspend-withdrawals). 

Commenting [via Twitter]https://twitter.com/saylor/status/1598163334934581248(), MicroStrategy CEO ardent Bitcoin maximalist Michael Saylor said Benham’s remarks denoted he was flip-flopping after often arguing to the contrary. Last October, the CFTC chair suggested that ETH may be considered a commodity, a position on crypto commodities also held by Security and Exchange Commission (SEC) Chairperson Gary Gensler. 

## Drawn-out debate

A drawn-out debate over which crypto assets qualify as commodities has persisted, with BTC almost always unanimously considered a non-security due to its decentralized nature. However, the status of ETH, Ripple (XRP), and several other altcoins has remained a hot potato.

The SEC is embroiled in a lawsuit with Ripple Labs due to the [confusion](/news/article/senate-bill-cftc-crypto). Gensler remains tight-lipped about the status of other cryptos, even though he's hinted repeatedly that most, including stablecoins, are securities. 

As FTX's financial regulator, the CFTC has been accused of getting into bed with the exchange and acting as a cheerleader for crypto, primarily due to its association with the ill-fated exchange. The regulator is in hot water for failing to conduct even minimal supervision or examination, presumably identifying deficiencies and failures that would have required enforcement action.  
    
## Too slow to provide regulatory standards 

Cryptocurrency industry players have heaped a barrage of criticism on US regulators, arguing that they were too slow in providing leadership and regulatory standards for the emergent industry. Coinbase CEO Brian Armstrong has recently opined that the degree of FTX's collapse could have been averted if clear standards checked the magnitude of global trading volume to exchanges abroad.

The CFTC chair, though, has defended himself, saying that besides the asset class being "unlike any commodity we have dealt with," his agency is starved of financial resources and hence unable to take appropriate enforcement action. Benham has [a date with authorities](https://www.reuters.com/technology/us-cftc-chair-be-questioned-over-ftx-collapse-by-lawmakers-2022-12-01/?rpc=401&) regarding his actions and whether the collapse of FTX could have been avoided.


CFTC Chair 'Flip-Flops' on Crypto

US Deputy Treasury Secretary Wally Adeyemo has emphasized the need for the United States to collaborate with other countries to develop cryptocurrency regulations effectively.

This development comes a few weeks after FTX, the second most popular crypto exchange, based in the Bahamas, [became insolvent](/news/article/ftx-bankrupt-who-to-blame). CEO Sam Bankman-Fried declared that the protocol did not have sufficient assets to meet customers' demands.

Speaking at the [Reuters NEXT](https://events.reutersevents.com/next) conference, Adeyemo said countries must enact regulatory laws to protest investors, promote financial stability, and block illicit crypto users.

"This is a global phenomenon," Adeyemi said. He added that the US would work closely with international partners to design a regulatory framework to protect the global economy, especially with crypto innovations.

The Deputy Treasury Secretary noted that since FTX was not based in the US, regulatory efforts must be broadened.

## Crypto regulation post-FTX collapse

FTX declared insolvency and Bankman-Fried resigned from his position as CEO on 11 November, a few days after the world's biggest crypto exchange, Binance, dumped a deal to rescue the exchange. This was followed by angry traders pulling $6 billion out.

As a result, Rostin Behnam, chairman of the Commodity Future Trading Commission (CFTC), urged lawmakers on Thursday to quickly design a regulatory framework for crypto assets.

After several congressional hearings to examine the collapse of FTX, members of the Senate Agriculture Committee asked Behnam if the FTX collapse would have been controlled with better oversight.

However, the recent setback in the crypto market has not affected the banking sector. This is according to Janet Yellen, the US Treasury Secretary, who remains skeptical about the crypto industry. She believes in the need for adequate regulation.

While speaking at the DealBook event hosted by New York Times, the Treasury Secretary said adequate customer protection is needed in the crypto sector.

Just like Wally Adeyemo, she agrees that it is important to remain open to financial innovations, given that cryptocurrencies can lower the cost of cross-border transactions and promote financial inclusion.

"I have been skeptical, and I remain quite skeptical," Yellen said. She noted that recent developments are not centered on financial inclusion and cross-border payment.



Wally Adeyemo Calls for Crypto Regulation

New York State has made a landmark regulatory move under Governor Kathy Hochul. It has become the first American state to ban the [mining](/news/article/mining-company) of specific crypto tokens. These include cryptocurrencies that require extensive energy to be mined.

The Governor has taken the step to confront the [environmental problems](/news/article/environmental-cryptocurrency-concerns) caused by energy consumption.

## New York crypto mining ban 

On Tuesday, Gov. Hochul [signed the legislation](https://www.nysenate.gov/legislation/bills/2021/A7389) to enforce a temporary prohibition on energy-intensive crypto mining. Essentially, the cryptocurrencies included in this category are the ones that run on the Proof of Work (PoW) mechanism. 

The suspension of such activities is imposed for two years in NY. In this period, regulators will neither provide new permits nor renew any existing licenses. The ban is imposed under [Assembly Bill A7389C](https://www.nysenate.gov/legislation/bills/2021/A7389). 

The rationale behind this legislation is the high infrastructure and environmental costs of cryptocurrency mining. The bill also directed the NY State [Department of Environmental Conservation](https://www.dec.ny.gov/) to assess the impact of PoW on the environment. 

The department will prepare a report in a year to assess its impact across the state. It will then provide recommendations to improve future policies.

## What will be the repercussions of the ban?

Various American states recently introduced policies to support the digital asset industry. After [China's crackdown](/news/article/web-wechat-china-ban-nft) on virtual asset service providers, they saw it as an opportunity to attract them to the US. However, this bill has done quite the opposite and may affect the mining operations in the country. 

The timing of this ban is also critical in terms of the market condition. The crypto market is currently going through a rough winter. First, the [Terra Luna collapse](/news/article/terra-luna-collapse) and then the decline of the [FTX exchange](/news/article/ftx-vs-binance-liquidate-funds) have left the investors in shock.

Overall, there is extreme fear among traders who doubt the future of cryptocurrencies. In this scenario, a temporary ban on mining will further aggravate the situation for these digital assets.


New York Crypto Mining Banned

The [American CryptoFed DAO](https://www.americancryptofed.org/) is about to fight a legal battle with the US Securities and Exchange Commission ([SEC](/news/article/sec-crypto-news)). It will become the country's first authorised decentralised autonomous organisation to do so. The issue is token registration, which the regulators approved in 2021. 

But now, the SEC has [announced](https://www.sec.gov/news/press-release/2022-208#.Y3f3-2DgThg.mailto) that the US DAO provided “misleading” information for the public offering of its tokens. It further accused the organisation of non-compliance in the investigation procedure. So, the regulatory authority will initiate an administrative proceeding against the firm. 

## Accusations from the regulators

The Enforcement Division of the crypto watchdog stated that the company provided incomplete information in Form S-1. It did not provide audited financial statements and other necessary documents related to its operations. Moreover, the statements seemed inconsistent and misleading regarding the nature of its tokens.
 
Regulators noted that the CryptoFed tokens might fall under [securities laws](/news/article/ether-staking). The firm also failed to cooperate with the regulatory body, it is alleged. Therefore, they may have to cancel the registration for their tokens.

## US DAO not to take assistance from an attorney

The US DAO, CryptoFed, has decided to fight the case without taking assistance from a legal advisor. It successfully registered two of its tokens in 2021 with the regulators. One was a stablecoin, Ducat, and the second was an interdependent governance token, Locke. 

[Cointelegraph](https://cointelegraph.com/news/first-official-dao-in-the-us-to-fight-sec-without-attorneys) has reported remarks from the COO and organiser of the firm, Xiaomeng Zhou. He confirmed it has lodged the notice of appearance per the [SEC’s regulations](/news/article/us-sec-regulation). It also reports that the firm will represent itself in court without a solicitor.

CryptoFed may also apply for an extension in the deadline to prepare its answer. If the application gets approved, the firm will likely get an extension of around 20 days to defend its stance.


US DAO to Battle SEC Without Solicitor

The FTX exchange is being investigated for mishandling consumer funds and violating securities regulations. Regulatory investigations were among the primary reasons Binance decided not to acquire the firm.

## FTX exchange agreed to sell to Binance

After undergoing the cryptocurrency equivalent of a bank run, the [crypto business](https://fortune.com/crypto/2022/11/10/ftx-sam-bankman-fried-doj-sec-examining-source-says/) decided earlier this week to sell itself to a larger rival, Binance. Customers abandoned the exchange after getting worried about their capital.

## Why is SEC investigating the FTX exchange?

The [cryptocurrency market](https://www.reuters.com/technology/us-probes-ftx-over-handling-client-funds-bloomberg-news-2022-11-09/) has been volatile, with worries over the company's financial stability leading to $6 billion in withdrawals in the 72 hours following Tuesday morning. Binance later announced a [non-binding deal](https://www.reuters.com/markets/currencies/cryptocurrencies-slide-concerns-over-ftx-exchange-rattle-markets-2022-11-08/) to purchase FTX's non-US business to address a "liquidity constraint" at the rival exchange.

According to the source, the SEC is also looking into the business's ties with its US equivalent FTX US and Chief Executive Officer Sam Bankman-Fried's trading firm. The SEC does not want to speak on the existence or nonexistence of a prospective probe, said an SEC representative. A CFTC spokeswoman declined to comment as well.

The crypto community's and securities authorities' inquiry into [Bankman-Fried](/news/article/sam-bankman-fried-lost-billions) and his crypto company are centred on the potential that the firm utilised client deposits to support bets at Bankman-hedge Fried's fund, Alameda Research. Brokers in conventional markets are supposed to keep customer cash apart from other firm assets. Regulators can punish violations. 

An individual acquainted with the [FTX and Binance](/news/article/ftx-vs-binance-liquidate-funds) transactions described them as a "black hole" in which it was hard to distinguish between assets and liabilities. This individual said Bankman-Fried committed the "ultimate sin" by using custodial assets to support Alameda Research.

## Gensler's view on FTX exchange

Under Democratic leadership, the SEC has increased its examination of the cryptocurrency industry. Chair Gary Gensler has already expressed concerns about whether crypto platforms effectively separate funds and if their market-making operations are trading against their clients.

Earlier this year, a cryptocurrency start-up BlockFi Inc subsidiary [agreed to pay](https://cointelegraph.com/news/blockfi-limits-platform-activity-including-a-halt-on-client-withdrawals) a record penalty to resolve allegations connected to its retail lending product. Other organisations, like FTX, enable users to "stake" certain cryptocurrency tokens in exchange for a return.



FTX Exchange Under Investigation

The credit card giant [Mastercard](/news/article/crypto-trading-services-mastercard) has been running an accelerator program for startups since 2014. It has recently announced that this year, applications from 7 FinTech startups have been accepted for [Mastercard Start Path](https://startpath.mastercard.com/spglobal/home.html). The firm intends to promote innovation in blockchain, FinTech, and the web3 space with this move.

The upcoming cohort of firms that have joined the program is quite diversified. They are from four countries: the United States, Singapore, United Arab Emirates, and Colombia.  

## Blockchain companies accepted in Mastercard Start Path

There are a few known names among the companies that will be joining the program. One of them is Abu Dhabi-based [Fasset](https://fasset.com/), which is a digital asset gateway service provider. 

The credit card company, previously, has also worked with it to provide digital solutions in Indonesia. Another firm from the UAE is Take Back the Mic ([TBTM Studios](https://tbtm.app/)). It allows entertainment platforms to leverage blockchain technology.

There are three companies from the US: [Loot Bolt](https://lootbolt.com/), [Uptop](https://www.uptop.xyz/), and Quadrata. Loot Bolt provides services related to web3-based payment systems. Uptop offers a platform for brands to manage their customer relations, and [Quadrata](https://quadrata.com/) allows blockchain-based solutions for preserving privacy.

From Singapore, the [Digital Treasures Center (DTC)](https://dtcpayment.com/) will be part of the program. And from Colombia, [Stable](https://www.stable-app.com/), a stablecoin startup, is accepted. 

## What’s the goal of Start Path?

Start Path was launched in 2014 to help startups get the initial funds and expand. It is a yearly program that lasts for six months. So far, this initiative has boosted the performance of over 350 firms, some of which have also reached unicorn status. 

Last year, Mastercard decided to launch a crypto division for this program. It was to support web3 and [crypto projects](/news/article/crypto-app-mastercard-nft) by investing in them. It helps companies build a community of developers and bring more innovation to the industry. 

However, this credit card corporation is not the first to take such an initiative. Many corporations like [Binance](/news/article/guide-to-binance-uk), [Disney](/news/article/matic-disney-collab), and others also run accelerator programs. 




7 FinTech startups joined Mastercard Start Path

Bitcoin dropping in price has become a familiar feature of the cryptocurrency markets in 2022, but news from the US may indicate a reversal of fortune.

[BTC](/coins/btc) is the most traded crypto in the world, accounting for a sizeable portion of the crypto market. The birth of Bitcoin marked the beginning of an entirely new asset class and a significant shift away from forms of centralised control.

[Bitcoin dropping](/news/article/bitcoin-price-crash-celsius) in price has been regular since it reached its all-time high on 10 November 2021. The crypto winter resulted in Bitcoin dropping below $19k last week.

However, with US equities rising at the opening of Wall Street on 17 October, [Bitcoin moved closer to $20,000](https://cointelegraph.com/news/bitcoin-price-edges-closer-to-20k-as-way-worse-us-data-boosts-stocks).

## Stocks rise as the US dollar falls

BTC/USD reached $19,518 on Bitstamp, up 3.5% from the weekend's lows, according to [Cointelegraph](https://cointelegraph.com/) Markets Pro and [TradingView](https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE) data.

The pair rose alongside stocks, with the S&P 500 and Nasdaq Composite Index gaining 2.7% and 3.2%, respectively, within the first thirty minutes of trading.

The action was combined with weak US economic data in the form of the Empire State Manufacturing Index, which fell to -9.1 in October, well below the -4.3 forecast and the -1.5 reading in September.

"According to the October survey, manufacturing activity in New York State decreased," the New York Federal Reserve summarised in a commentary on the data.

An eight-point decline brought the general business conditions index to -9.1. 
Michal van de Poppe, the founder and CEO of the trading company Eight, responded by stating that the outcomes were "way worse than expected".

He [predicted](https://twitter.com/CryptoMichNL/status/1581987848630435840), "Top on Yields & $DXY on the horizon. Bitcoin to rally".

As a result, the US dollar index (DXY) continued to retrace its day's gains, targeting 112 and falling 0.65%.

## Research reinforces approaching volatility

While traders were already predicting some relief to hit crypto markets on weekly timeframes, other perspectives emphasised that nothing had changed for [Bitcoin](/news/article/bitcoin-price-uk).

"It is very unusual for BTC markets to reach such low realised volatility, with almost all prior instances preceding a highly volatile move," on-chain analytics firm Glassnode explained in the latest edition of its weekly newsletter, The Week On-Chain.

Researchers, including lead analyst Checkmate, argued that the market had reached a tipping point alongside a chart of Bitcoin's realised volatility.

Glassnode concluded that, while the fuel for a potential price breakout was present, such as BTC-denominated futures open interest reaching new all-time highs, there was "little discernible directional bias in futures markets".

"Volatility is likely on the horizon, and Bitcoin prices are not known to remain static for long," according to the newsletter.



	


person sat at laptop as bitcoin price drops

Bitcoin Dropping Price Halted by US News?

This Kraken review will zero in on margin trading with the US-based cryptocurrency exchange.

[Margin trading](https://cryptopotato.com/kraken-margin-trading-beginners-guide-everything-you-need-to-know/) allows customers to leverage their bets using funds they do not own. The advantage of this trading strategy is that it can significantly improve profits while putting less money at risk.

However, it is also worth mentioning that it has the potential to amplify losses rapidly. Leveraged trading enables investors to open more leveraged positions than their current balance. Kraken advances funds over what the investor currently has in their account.

To start a margin account, the user's broker is legally obligated to acquire their permission. The margin account may be included in the usual account opening agreement or it may be a separate agreement.

Margin trading is also more versatile than other sorts of lending. There may be no set repayment timeline, and the user's broker's maintenance margin requirements may be straightforward or automated. Most margin accounts are open until the securities are sold. At this point, final payments are often due to the borrower.

## Kraken review: How margin trading works

To margin trade on [Kraken](https://www.kraken.com/en-gb/features/margin-trading), users must go through several order types based on where they believe the market will move. The buyer can open long or short trades and close them using opposite orders or settling commands.

## Kraken review: What cryptocurrencies can users trade

One detail that needs to be known is which cryptocurrencies [Kraken](https://r.kraken.com/4e7yWG) supports for margin trading and the leverage levels at which customers will be allowed to deal. 

Kraken offers varying amounts of leverage depending on the cryptocurrency the investor wants to trade.

As a result, the allowable leverage varies depending on the base and quoted currencies. The following table lists all of the cryptocurrencies currently accessible for this type of trading and the leverage levels that are available for each one:

[![Kraken1.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Kraken1_0ef841b41d.png)](https://www.kraken.com/features/margin-trading)
  
## Kraken Review: How to open a margin position

When a user opens a position, they receive advance cash (the margin) to assist them in executing a leveraged trade. 

In general, positions can be opened in two ways, depending on whether the investor wants to go long or short. 

If users want to open a long trade for ETH/EUR, the Kraken exchange will advance EUR to buy ETH. 

If the customer wants to open short trade, they will advance ETH so that the user can sell it for EUR. 

To enable margin trading, the user must log into the account, navigate to the "New Order" page, and select "Intermediate." 
 
[![Kraken2.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Kraken2_bc3aa130fc.png)](https://www.kraken.com/features/margin-trading)

[![Kraken3.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Kraken3_24e15de6a4.png)](https://r.kraken.com/4e7yWG)
  
The above screenshot illustrates that the [user](/news/article/kraken-exchange-under-investigation) can purchase or sell using the specified leverage on the right. For example, if the consumer selects to employ a leverage amount of 3, which is 3:1, tripling their purchasing power. 

If the user wants to go long, they must first place a buy order, as described above. 

The user must next configure the Order Type. If they choose the market, they must select "market" from the two options. If they wish to execute the deal when the price reaches a specified limit, they must select "limit".

## Kraken review: How to close a position

As previously stated, when users use leveraged margin positions, trades are conducted with an advance funded by [Kraken](/news/article/kraken-ceo). 

Users must return all the monies advanced to the exchange to close a trade. To close a trade, the user must create an order inverse of the opened order they wish to complete.

[![Kraken4.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Kraken4_375fee55f5.png)](https://r.kraken.com/4e7yWG)
 
There is a long open position for Bitcoin in the previous screenshot. It indicates that the order type is "buy/market," indicating that the position is long. It selects the best available market order rather than aiming for a specific price limit on the order book. 

The investor would have to create the opposite transaction to close that position. 
 
[![Kraken5.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Kraken5_2d9039dc05.png)](https://r.kraken.com/4e7yWG)

Since the position that needs to be closed is a "Buy," the user must select the "Sell" option on this screen. They also must choose leverage; otherwise, their funds will be sold at the best market price. 

After picking leverage, all the user has to do is click the Sell XBT for EUR button, and the trade will be closed, adding or discounting their balance with the profit or loss made on that transaction.

## Kraken review: How to settle a position 

Margin trading, as previously stated, is carried out through Kraken advances. As previously mentioned, one method for closing positions is to execute an opposite transaction. 

The second method is for the trader to return the advanced funds immediately from his account without engaging in a trade, known as a position settlement. 

For example, here's what you need to do to settle a long position. 
 
[![Kraken6.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Kraken6_d124eb7445.png)](https://r.kraken.com/4e7yWG)

The user must pick the advanced option from the top menu to generate a Buy settle position order.

The user then chooses the amount to settle and the level of leverage. The order type should be "Settle Position".

The number of cryptocurrencies settled will be purchased using the chosen currency from the user's account at the price at which the position opened.

## Kraken Review: Types of fees

Regarding margin trading on Kraken, the user must be aware of two types of costs. These are the "opening fees" for creating a new position and the "rollover fees" for keeping an existing position open.

Both depend on the base and quote currencies. The initial cost ranges between 0.01% and 0.02%. 

The rollover cost, on the other hand, is payable every four hours and varies depending on the cryptocurrency trading pair selected by the customer. It ranges from 0.01% to 0.02% every four hours.

Margin trading on Kraken can be advantageous, allowing users to increase their profits if the right trade occurs. The platform has several advantages, but users must also note that losses might multiply.

It's vital to remember that [margin trading](https://www.investopedia.com/terms/m/margin.asp) is considered high-risk, with significant losses possible if the trade doesn't go as planned. As a result, it's critical to recognise the risks of this form of trading and act cautiously.


Kraken Review: All You Need to Know

[Moon Mortgage](https://www.moonmortgage.io/), a crypto lending firm, has concluded its seed funding round. At the end of the round, the platform secured around $3.5 million. The funds will go towards developing its financial product offering in the real estate space.

It will allow investors to get financing for real estate while putting their virtual assets as collateral. Also, the investors can get loans against the cumulative values of their assets.

The lending firm is based in the [United States](/news/tag/usa). It helps investors collateralise their cryptocurrency holdings to get loans for real estate investment. Its products will be launched with the first phase tranched in Texas, Colorado, and Florida. After that, the firm aims to expand its operations throughout the US. 

## CEO’s thoughts on the Moon Mortgage milestone

The CEO and co-founder of the [crypto lending](/news/article/crypto-lending) firm, Aaron Nevin, believe there are no solutions in the market for using cryptocurrency holdings to invest in real estate. Nevin said that investors needed to liquidate their funds and “lose their upside and get hit with a massive tax bill.”

He further said that his firm aims to bridge the gap “[between] cryptocurrency and TradFi to make it easy for them to leverage their digital assets.” He explained that this would not only allow them to materialise their holdings but also enable them to continue making gains through it. 

## About Moon Mortgage

It is a US company that provides services related to [cryptocurrencies](/coins). The Moon crypto mortgage allows you to buy a real-world asset without liquidating your virtual funds. Though it does not work as a traditional bank, a US chartered bank, Anchorage Digital, provides these services. 

The platform raised around $3.5 million in its seeding round, which will be used for its lease services. Cadenza Ventures and CoinFund led this funding round. 


Crypto lending firm Moon Mortgage secures $3.5m

One of the top-rated cryptocurrency exchanges, FTX, has secured the auction for Voyager Digital’s assets. The [crypto firm Voyager](/news/article/voyager-crypto) confirms that FTX US made the winning bid for the company’s assets, which was $1.422 billion. 

[Sam Bankman-Fried’s](/news/article/sam-bankman-fried) exchange competed for this sale with the crypto investment firm [Wave Financial](https://wavegp.com/). Apart from that, Binance, CrossTower, and several other virtual asset firms also participated in the auction.

On Monday, the exchange issued a [press release](https://www.prnewswire.com/news-releases/voyager-completes-successful-auction-and-announces-agreement-for-ftx-to-acquire-its-assets-301633679.html) announcing the auction’s completion. It mentioned that the bidding war took place for two weeks. It has concluded with the Bahamas-based firm’s winning bid. 

Moreover, it disclosed that the accepted bid includes the future market value of the firm, which is $1.311 billion. Also, it consists of an estimated incremental value of $111 million. 

## Bankruptcy of the crypto firm Voyager

Earlier this year, in July, crypto Voyager Digital filed for [bankruptcy protection](/news/article/crypto-lending-platform-voyager) in the United States. Chapter 11 bankruptcy protection allows businesses to continue their operations while they figure out a plan for either restructuring or selling it. 

It suffered losses of around $650 million as [Three Arrows Capital (3AC)](/news/article/genesis-crypto-claim) defaulted. When filing for the protection, the company was in financial ruin as it had a debt of $1 billion. Following that, it restrained its consumers from retrieving their funds. 

## What is in store for the future of Voyager Digital?

As of now, the company has not provided much information regarding its customer’s crypto funds. However, it has been mentioned that the information regarding how the customers will be able to access their funds will be shared “as it becomes available.”

Nonetheless, it clarified that the exchange would allow its customers to stock and trade their virtual assets. However, it will be authorised after the firm’s chapter 11 bankruptcy cases are resolved. Moreover, this deal will also be completed after the conclusion of the debt issues. The expected date for its decision is October 19.





crypto lender voyager sells assets to ftx

Crypto lender Voyager's assets auctioned to FTX US

One of the preferred stablecoin options in 2022 is [TrueUSD](https://www.trueusd.com/), or also known as TUSD.

What is the TUSD crypto stablecoin? TUSD is an ERC-20 stablecoin that is fully backed up by the US dollar. At this time, it is one of the most trusted and securely regulated stablecoins using USD. It was created by the firm TrustToken Platform in order to combat the rise of fraud in the crypto space. It is backed up by TrustToken’s real provable fiat assets.
 
Large amounts of fraud have caused massive concerns about crypto adoption, especially among governments. This means that big-name exchanges and other companies in the crypto industry want to lower the risk for their clients. This is why stablecoins were created. 

## What is a stablecoin? 

In simplest terms, a stablecoin is a cryptocurrency of which the price is designed to be based on a reference asset. In the case of TrueUSD (TUSD), the reference asset is the US dollar. Volatility is mitigated by maintaining proven collateral. In the case of some stablecoins, an algorithm is used to keep the value steady and adjust supply based on a set of rules. 

## What can I do with TUSD crypto?

In the simplest terms, a stablecoin like TrueUSD (TUSD) can be seen as the “crypto version” of a real dollar.
 
However, the ease of moving and verifying cryptocurrency is often the trade-off for volatile prices and a lack of security. This is where stablecoins come in by mitigating the risk to investors and institutions by holding collateral. Here is where TrueUSD (TUSD) really shines.
TUSD crypto is one of the most heavily regulated stablecoins out there

## If you’re still reading, you are probably wondering: Is TUSD safe? 
 
The simple fact is this: TrustToken, the creators of TUSD crypto, are monumentally proud about their adherence to regulation as well as the fact that TUSD is backed by real assets.
 
The TrustToken platform has partnered with accounting giant [Armanino](https://www.armaninollp.com/industries/crypto-digital-assets/) to create TrustExplorer. According to Armanino’s Noah Buxton, Armanino is the first accounting firm to “formalize and complete a Proof of Reserves for a digital asset exchange.” Simply put, this is a way for those who hold digital assets on an exchange to verify that said exchange really has those assets! 

You can delve further into TrustToken regulatory compliance for yourself and get to know more about their partnerships on the [TrustToken](https://www.trusttoken.com/) website. 
 
## What makes TUSD crypto stand out from other stablecoins?

TrustToken Platform gets revenue in the form of interests in holding USD in their accounts. TUSD does not charge a fee for holders or for trading. This means there are zero or near-zero transaction fees associated with using TUSD.

## Bottom Line about the TUSD crypto stablecoin

Is TrueUSD (TUSD) here to stay? Is TUSD safe? TrueUSD is one of the USD stablecoins you must watch as a crypto investor. It is available on the Ethereum blockchain, which means that it is part of a growing ecosystem that is widely adopted in the crypto space. Also, adherence to regulation is key, and the TrustToken platform takes compliance and attestation very seriously. 



What is TUSD stablecoin?

The United States Securities and Exchange Commission (SEC) has announced opening two new offices, bringing the number of SEC crypto departments to seven, to facilitate exclusive support for evaluating issuer filings.

One of the two new offices will solely be managing crypto assets. Its purpose will be to provide the regulatory body with a solution to the growing number of crypto issuers in the country.

According to a statement by the[ Securities and Exchange Commission (SEC)](/news/article/xrp-court-case-update), the newly established Office of Crypto Assets and Office of Industrial Applications and Services will operate as part of the Disclosure Review Program (DRP), which is part of the Division of Corporation Finance administers.

Both offices will focus on "providing a focused review of issuer filings". Additionally, the authority affirmed that the work done throughout the DRP to review submissions regarding crypto assets would continue to be carried out by the Office of Crypto Assets.

According to the statement, the DRP can better focus its resources and experience to solve the specific and changing filing review challenges associated with crypto assets if it assigns firms and filings to a single office.

## The latest cryptocurrency news from the SEC's division of digital assets

Renee Jones, the director of the SEC's Division of Corporation Finance, explained that the rapid expansion of the cryptocurrency market had demonstrated the DRP's Office of Finance's requirement to give more substantial and specialised support. She went on to elaborate: "The establishment of these additional offices will make it possible for the DRP to strengthen its focus in the areas of crypto assets, financial institutions, life sciences, and industrial applications and services, and it will also make it easier for us to fulfil our purpose.

Gary Gensler, chairman of the Securities and Exchange Commission (SEC), stated last week that he had instructed the SEC staff to engage directly with business owners to ensure that their tokens are appropriately registered and regulated as securities.

The non-pharmaceutical, non-biotechnological, and non-medicinal goods developed by the Office of Life Sciences will be the primary focus of the second new office, the Office of Industrial Applications and Services.


SEC crypto news: SEC opens 2 new crypto offices

One of the [best crypto exchanges](/news/article/best-crypto-exchange-uk-reddit), Coinbase, is involved in legal action against the US Treasury. Coinbase CEO, Brian Armstrong, revealed that the company is backing a case against the Treasury Department for [Tornado Cash](/news/article/tornado-cash) sanctions. Six people brought this lawsuit, and the exchange is funding it. 
Tornado Cash is free software that is available on the Ethereum blockchain. Its protocol ensures privacy by allowing you to use different addresses for deposits and withdrawals. That’s why it enables users to remain anonymous while making transactions. 

##  Sanctions on Tornado Cash addresses

Last month, on the 8th of August, the exchequer department put sanctions on the smart contracts of Tornado Cash. This was because its technology was used for criminal activities, especially by North Korean hackers. 

The department and the [Office of Foreign Asset Control (OFAC)](https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information) took action against many addresses involved with the software. It was to stop cyber criminals from laundering money outside of the US OFAC asserted that many criminals are using this protocol to escape from the authorities. Therefore, limiting the use of this protocol became inevitable. 

##  Coinbase CEO views on the sanctions

In a blog post, Coinbase’s CEO and co-founder shared his views on the lawsuit. In the blog, he maintained that action against bad actors is necessary. However, sanctioning the technology is not the right step as there are many legitimate uses of this technology. 

![Picture2.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Picture2_0a129c7443.png)

 
Armstrong also indicated two significant problems because of banning the entire technology. One, many users might lose their funds on the protocol and be unable to use this privacy tool. Secondly, he mentioned that the Treasury had exceeded its mandate, which Congress defines.

The CEO of Coinbase further pointed toward the use of the privacy tool by individuals involved in the case. He claimed that individuals are protecting their privacy when [donating to Ukraine’s cause](/news/article/ukraine-crypto-aid), hiding their online presence, and for personal safety. This action can limit innovation, and many will likely lose their funds. 



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