Sam Bankman-Fried defrauded his customers and lenders, a New York jury found after a five-week trial for the FTX founder and former chief executive. A tentative sentencing date was set for March 28, 2024. Bankman-Fried could spend decades in prison (and theoretically up to 115 years). "Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history," U.S. Attorney Damian Williams said outside the courthouse after the guilty verdicts on all seven charges were revealed. "This kind of fraud, this kind of corruption is as old as time. We have no patience for it."
Coinbase (COIN) topped analyst estimates for the third quarter on earnings and revenue, while falling short in total trading volume expectations. The crypto exchange reported a third-quarter adjusted loss of $0.01 per share, compared with FactSet estimates for a loss of $0.55 per share, marking the third consecutive earnings beat for Coinbase. Total revenue for the quarter was $674.1 million, beating estimates of $650.9 million. Total trading volume, however, was just $76 billion, less than the $80.1 billion estimate and down from $92 billion in the previous quarter. Transaction revenue was $288.6 million, 12% less than in the previous quarter.
Alongside its third-quarter earnings report, software developer MicroStrategy (MSTR) disclosed the purchase of another 155 bitcoins (BTC) during October, bringing the total acquired since the beginning of Q3 to 6,607. As of the end of October, the Tysons, Virginia-headquartered firm co-founded by Michael Saylor was the owner of 158,400 bitcoins acquired at a total cost of $4.69 billion, or $29,586 per bitcoin. The company booked an impairment loss on its digital asset holdings of $33.6 million during Q3. Cumulative impairment losses have now risen to $2.23 billion, reflecting an average carrying amount per bitcoin of roughly $15,491. That, of course, isn't terribly reflective of the market value as of Sept. 30 of the company's bitcoin, which was $27,030, nor the current price of just under $35,000.
Chart of the Day
- The chart shows bitcoin's price and the ratio between open interest in the perpetual swaps market and the cryptocurrency's market capitalization since March 2020.
- While bitcoin's price has surged by over 25% in four weeks, the ratio remains near its yearly lows, indicating a tepid demand for leveraged products.
- It's a sign of a spot-led price rally.
- Source: IntoTheBlock
- Omkar Godbole
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.