April 20, 2025 | 21:14
Sam Bankman-Fried, the former CEO of bankrupt crypto exchange FTX, has been relocated to the Federal Correctional Institution (FCI) Terminal Island in Los Angeles, a low-security prison housing over 900 male inmates. Previously held in Brooklyn and briefly at facilities in Oklahoma and Victorville, Bankman-Fried was sentenced to 25 years for fraud related to FTX’s collapse. His parents, both Stanford Law professors, have reportedly sought clemency through political connections, though experts deem a pardon unlikely. The FTX scandal, involving billions in misused customer funds, became emblematic of the 2022 crypto market downturn. Bankman-Fried is scheduled for release in December 2044.
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17 in Finance and 1,102 in Crypto last weekDOJ Reviews Crypto Fraud Compensation Rules
The US DOJ is reviewing compensation rules for victims of crypto fraud, acknowledging that current methods—based on asset values at the time of claim filing—fail to account for market appreciation. For example, FTX creditors are being repaid in fiat at 2022 Bitcoin prices (~$20,000), despite its value now exceeding $108,000. The DOJ is working with legal and legislative offices to propose reforms, including updates to bankruptcy codes, to ensure fairer treatment of digital asset holders. This effort is part of a broader shift in the DOJ’s crypto strategy, which includes disbanding its National Cryptocurrency Enforcement Team to focus on criminal activities and participating in a presidential working group to modernize regulations. The goal is to align investor protections with the evolving crypto market.
read moreRipple’s Hidden Road Gains US Broker-Dealer License
Hidden Road, a digital asset and forex prime brokerage firm recently acquired by Ripple, has obtained a US broker-dealer license, broadening its institutional services. The license enables it to provide prime brokerage, clearing, and financing for fixed-income assets, extending its reach beyond crypto and forex. Following the FTX collapse, demand for counterparty risk-mitigating services surged, boosting Hidden Road’s profile. Ripple’s $1.25B acquisition of the firm—its largest deal—positions it as the first crypto-native owner of a multi-asset prime brokerage. Hidden Road will integrate Ripple’s RLUSD stablecoin as collateral and leverage the XRP Ledger for faster settlements, reducing costs and processing times.
read moreBinance Users Vote to Delist FTT, ZEC, and JASMY
Binance recently concluded a user-driven voting process to determine which altcoins should be delisted from its platform. FTT, the token associated with FTX, emerged as the most unwanted, receiving 11.1% of votes, followed by ZEC (8.6%) and JASMY (8.6%). Although the poll results influence delisting decisions, Binance emphasizes that other factors are also considered. Historically, delistings have led to significant price drops for affected tokens. The exchange’s move toward decentralized decision-making marks a shift from its previously centralized approach.
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