💳️ How FTX Execs spent $8 Billion in Customer Funds

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Bitcoin saw a nice jump in price today, peaking at $28,817, following amendments made to a spot bitcoin ETF filing in the U.S. This change triggered a wave of bullish sentiment, marking a notable two-month high. Speaking of ETFs, A false report concerning the approval of a spot bitcoin ETF emerged on Monday, offering a glimpse into the potential price action Bitcoin might undergo once such approval is genuinely granted. This misinformation prompted a swift 7% surge in Bitcoin's price, briefly reaching around $30,000. However, the price swiftly corrected when it became evident that the SEC had not approved the mentioned product.

In a surprising move, Reddit has unveiled plans to discontinue its long-standing blockchain-based rewards system, "Community Points," citing concerns about scalability. Moreover, recent revelations during Sam Bankman-Fried's trial have exposed that FTX executives, including Bankman-Fried himself, utilized approximately $8 billion in customer funds for diverse purposes.

Let’s dive in! 👇️ 

Markets

Bitcoin Nears $29K as Fidelity ETF Amendment Bumps Bullish Sentiment (2 minute read)
Today, Bitcoin experienced a notable surge, reaching a peak of $28,817, attributed to amendments made to a spot bitcoin ETF filing in the U.S. This propelled bullish sentiment and marked a two-month high, establishing itself as a leader in gains among major tokens. This surge contributed to a nearly 7% increase for the week. Fidelity, a significant asset management firm, submitted amendments to its proposed spot bitcoin ETF, the Wise Origin Bitcoin Trust, to the U.S. Securities and Exchange Commission (SEC) on Tuesday. These amendments outlined measures for safeguarding customers' bitcoin in custody accounts and addressing risks associated with the uncertain regulatory landscape surrounding cryptocurrencies, among other key aspects.

Was the price action on the fake bitcoin ETF news a sign of things to come? (3 minute read)
A false report surfaced regarding the approval of a spot bitcoin ETF on Monday, providing a glimpse into the potential price action Bitcoin might experience when such approval is genuinely granted. Market observers emphasize that authentic approvals from the US Securities and Exchange Commission could trigger significantly larger price surges, underscoring that the recent media mix-up indicates the event isn't fully factored into the current market. The erroneous report, which erroneously claimed the SEC's approval of a spot bitcoin ETF proposal by BlackRock (later corrected by Cointelegraph), prompted a swift 7% surge in Bitcoin's price, briefly reaching around $30,000. However, the price promptly corrected when it became clear that the SEC had not approved the mentioned product. Jeff Embry, managing partner at crypto hedge fund Globe 3 Capital, noted that this incident provided an early insight into the positive sentiment and substantial demand such a product would generate in the market.

Hong Kong’s confidence in crypto sours amid JPEX scandal (2 minute read)
The perception of cryptocurrency among Hong Kong residents has notably deteriorated following the JPEX cryptocurrency exchange scandal. A study conducted by the Hong Kong University of Science and Technology School analyzed the influence of the JPEX incident on public sentiment toward digital assets. Commencing on September 28, approximately 11 days after the allegations against JPEX were revealed, the survey compared its findings with a similar study carried out between April and May. The results indicated a significant shift, with 41% of respondents expressing a preference to avoid holding virtual assets—an increase of 12 percentage points compared to the May survey.

Tech

Reddit to wind down blockchain-based rewards service ‘Community Points’ (3 minute read)
Reddit has revealed plans to discontinue its long-standing blockchain-based rewards system, "Community Points," due to concerns regarding scalability. In an official announcement on October 17 within the r/CryptoCurrency subreddit, a Reddit team member acknowledged the potential for future opportunities with Community Points but noted the lack of a feasible strategy to scale it effectively across the platform. The closure of the Community Points service, inclusive of the special membership feature, is scheduled for November 8. Consequently, points, which were Ethereum-based ERC-20 tokens stored in Reddit's proprietary crypto wallet service known as the "Reddit Vault," will no longer be visible or earned in communities.

Yuga Labs’ Newcomer CEO Shares Strategy for BAYC, CryptoPunks & Otherside Products (3 minute read)
In response to the challenging market conditions in the NFT space, prominent NFT developer Yuga Labs is instituting a strategic reorganization plan. CEO Daniel Alegre, in his six-month tenure, has been proactively engaging with the community and actively participating in meet-ups to gain a deeper understanding of the Yuga family. This involvement has led to the inception of initiatives like Made by Apes and a heightened emphasis on advancing the CryptoPunks art form. Guided by Alegre's direction, Yuga Labs has outlined three primary objectives: bolstering existing communities, prioritizing the Otherside project, and leveraging strategic partnerships to ensure the smooth execution of significant endeavors.

Misc

New EU rules require crypto firms to share customers’ tax data with authorities (4 minute read)
Starting in 2026, cryptocurrency firms in Europe are mandated to furnish financial details of their account holders to tax authorities, a measure aimed at combating tax evasion. The European Union's 27 finance ministers unanimously greenlit regulations on a Tuesday, integrating crypto assets into the existing data-sharing framework among tax authorities within the bloc. Consequently, providers of crypto services, including digital wallets and exchanges, are obligated to share user information with government regulatory bodies. The intention behind this initiative is to facilitate the tracking of criminal funds denominated in cryptocurrencies as they traverse international borders.

FTX execs blew through $8B — testimony reveals how (4 minute read)
In recent revelations during Sam Bankman-Fried's trial, it has been disclosed that FTX executives, including Bankman-Fried himself, utilized approximately $8 billion in customer funds for diverse purposes like real estate, venture capital investments, campaign donations, endorsement deals, and even a sports stadium. This information comes from the testimony of Nishad Singh, a former senior executive at FTX, providing fresh insights into the specific allocations of these funds. Singh, who has already pleaded guilty to fraud, money laundering, and campaign finance law violations, explained that he discovered the substantial discrepancy in Alameda's financial records due to a coding error, resulting in an incorrect accounting of user deposits amounting to about $8 billion.

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