News Roundup — SBF Is Going to Prison for 25 Years

Major news stories this week;

1. SBF Is Going to Prison for 25 Years
2. London Stock Exchange To Launch Bitcoin ETN Market In May
3. Crypto Exchange KuCoin Violated Anti-Money Laundering Laws, U.S. Charges
4. 20 Billion Dollar Cryptocurrency Investigation from USA and UK to Russia
5. Binance executive detained in Nigeria in crypto case escapes custody

Story Summaries;

1. Bankman-Fried was sentenced to 25 years in federal prison last week, nearly six months after being convicted on a host of fraud charges tied to his role in the implosion of the FTX exchange and Alameda Research trading firm in November 2022. The sentence is lengthy, but it could have been much harsher – it’s only a quarter of the 105 years recommended by the Department of Probation, and roughly half of the 40-50 year sentence prosecutors pushed the New York court overseeing Bankman-Fried’s case to impose. That said, it’s also much higher than the five to 6.5 year sentence Bankman-Fried and his lawyers were hoping for.
2. The London Stock Exchange has announced that it will accept applications for the admission of Bitcoin Crypto Exchange-Traded Notes (ETNs) starting from April 8, 2024. This decision follows the Exchange's earlier notice on March 11, indicating its intention to allow the trading of Crypto ETNs in the second quarter of the year. Subject to approval by the Financial Conduct Authority (FCA) of the base prospectuses, the Exchange plans to commence trading of these ETNs on Tuesday, May 28, 2024. This move is aimed at ensuring maximum issuer participation on the first trading day and allowing issuers sufficient time to prepare their documentation and meet regulatory requirements.
3. Crypto exchange KuCoin and two of its founders were charged with violating anti-money laundering laws by U.S. federal prosecutors. Homeland Security Investigations Special Agent Darren McCormack called KuCoin "an alleged multibillion-dollar criminal conspiracy." KuCoin’s native token (KCS) dropped by 5% after the announcement. U.S. federal prosecutors charged crypto exchange KuCoin and two of its founders with violating anti-money laundering laws, saying the exchange operated in the U.S., lied to at least one of its investors about operating in the U.S. and failed to both register with U.S. government entities and maintain an anti-money laundering program.
4. According to Bloomberg, the USA and the UK are investigating the $20 billion cryptocurrency transfer sent to the Russian stock exchange. The United States and Britain are examining more than $20 billion in cryptocurrency transfers through a Russia-based virtual exchange as part of Russia's efforts to evade sanctions, according to people familiar with the matter. Knowledgeable people said that the $20 billion transfer examined was made through the Moscow-based cryptocurrency exchange Garantex and using Tether (USDT). It was stated that the transfers in question took place since Garantex was sanctioned by the USA and the UK on suspicion of facilitating financial crimes and illegal transactions in Russia.
5. An executive of cryptocurrency exchange Binance has escaped custody in Nigeria, where a criminal investigation has been launched against the platform accused of being used for money laundering, according to authorities. Nadeem Anjarwalla, the regional manager for Binance in Africa, “fled Nigeria using a smuggled passport”, the office of Nigeria’s National Security Adviser said in a statement on Monday. “The personnel responsible for the custody of the suspect have been arrested, and a thorough investigation is ongoing to unravel the circumstances that led to his escape from lawful detention,” Zakari Mijinyawa, spokesman for the office of Nigeria’s National Security Adviser, said in a statement.

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And that’s all for last week’s news! Wishing you a great week ahead!

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