The trial of alleged Mango Markets exploiter Avraham Eisenberg, originally scheduled for December 4 of this year, has been postponed to April 8, 2024, according to court documents. Eisenberg's attorneys asked for a delay after their client was "unexpectedly transferred" from his prison in New Jersey to the Metropolitan Detention Center (MDC) in Brooklyn — the same prison where Sam Bankman-Fried has been held since his bail was revoked this August. Eisenberg's attorneys also argued that they needed more time to prepare a defense because of the "complex and novel legal and factual issues" and the volume of discovery produced by the government. Prosecutors, in opposing the motion, argued, "The defendant committed the charged offenses alone, in one day, through a series of separate financial transactions," and that the defense had plenty of time to prepare. Eisenberg's "highly profitable trading strategy" has been indicted by the Department of Justice, SEC, and CFTC in connection with his alleged $116 million Mango Market exploitation, which he claimed at the time was simply a "very profitable trading strategy." “I believe all of our actions were legitimate open market actions, using the protocol as designed, even though the development team did not fully anticipate all the consequences of setting the parameters as they were,” he said.The wire fraud charge carries a sentence of up to 20 years in prison.#cryptonews #cryptocurrency

BF is guilty on all counts as jury finds he defrauded FAST investors Sam Bankman-Fried was convicted of seven of seven criminal counts of defrauding FTX customers, lenders and investors, Inner City Press reports.Sam Bankman-Fried was convicted of defrauding customers, lenders and investors in FTX, the cryptocurrency exchange he founded and led until its dramatic collapse a year ago, which caused customers to lose billions of dollars in what prosecutors called “one of the largest financial frauds in U.S. history.”Bankman-Fried was found guilty of two substantive crimes, wire fraud on FTX lenders and customers, and five conspiracy crimes, which include conspiracy to commit wire fraud charges along with commodities fraud, securities fraud, and money laundering, Inner City Press reported. He faces up to 115 years in prison. When the verdict was read, Bankman-Fried's father, Joseph Bankman, sat with his head in his hands, while his mother, Barbara Fried, bowed her head. The couple was present almost the entire day of the trial. As the jury departed, they hugged each other tightly. They waited for Bankman-Fried behind a courtroom divider but she was quickly ushered out of the room. About halfway out of the room, Bankman-Fried turned and smiled at her parents. “We respect the jury's decision,” Bankman-Fried's attorney, Mark Cohen, said in a statement. "But we are extremely disappointed with the outcome. Mr. Bankman Fried maintains his innocence and will continue to vigorously fight the charges against him."Crypto collapseBankman-Fried's crypto empire collapsed dramatically a year ago after the FTX exchange he led as CEO and trading firm Its sister company, Alameda Research, which was founded and co-owned by Bankman-Fried, was unable to recover from the huge hole in its balance sheet that led to losses. customers lost billions.Bankman-Fried was later arrested in the Bahamas and extradited to the US. He has been jailed for the duration of the trial after his bail was revoked in August because prosecutors accused him of witness manipulation by leaking the private diaries of his and former colleagues. his girlfriend Caroline Ellison told the New York Times and used an encrypted messaging app to contact potential witnesses.The trial itself has attracted attention in the crypto industry over the past year following the stock crash as investors suffered and the industry itself sought to distance itself from Bankman-Fried.The former billionaire himself took the stand near the end of the trial, but his testimony failed to convince the jury to acquit him. Bankman-Fried told the jury he thought until the final days Alameda and FTX could be saved. He admitted wrongdoing and said FTX had a “lack of oversight,” but his lead attorney, Mark Cohen, argued that bad business decisions were not crimes. Prosecutors, in their closing arguments, emphasized that Bankman-Fried was one of the conspirators who knew about the fraud, points to the testimony of three former FTX executives — Ellison, who is CEO of Alameda research, former FTX CTO and co-founder Gary Wang, and former Chief Engineering Officer Nishad Singh — as irrefutable evidence that Bankman-Fried knows more than he admits about finance his kingdom. All three co-conspirators have pleaded guilty to various charges, although none have been sentenced.What's nextJudge Lewis Kaplan scheduled sentencing for March 28.Bankman-Fried's attorneys may decide to appeal on two issues – one regarding his limited ability to offer legal counsel. , and another regarding the judge allowing a pre-testimony hearing where the government could question the former FTX CEO. said Samson Enzer, partner at Cahill, Gordon & Reindel. Enzer is a former federal prosecutor in the US Attorney's Office for the Southern District of New York, where he handled many crypto-related cases. The presence of defense arguments means Bankman-Fried insists that a lawyer is present when conducting his business and the presence of a lawyer gives him comfort that what he is doing is OK "I don't think they will win. "I think the government will win the appeal, but I expect the government will deny it," Enzer said. Bankman-Fried still faces five more charges in a trial currently scheduled for March 2024, including defrauding FTX customers in connection with the purchase and sale of derivatives, fraud securities against investors in FTX, and three counts of conspiracy: bank fraud, operating an unlicensed money transfer business, and violating bribery laws in the Foreign Corrupt Practices Act. If the government still pursues additional charges, the court wants to postpone the sentence. However, Enzer said he wouldn't be surprised if the government drops the lawsuit or tries to find a way to resolve it. Street or on the blockchain,” said Enzer. “It will be aggressively enforced.”Investors must then have confidence that their rights against fraud will be protected and bad actors will be removed, Enzer said.“What we are left with are the good actors, the ones who I think are the majority, Enzer said. “People who were trying to do things that made the world better.” Enzer said the trial itself had produced its own findings that had nothing to do with the outcome. thinking in the industry about what we need to do to ensure that we safeguard customer assets, that we protect our customers. and counterparties that we control well and we manage risks adequately including hedging when we make investment decisions," said Enzer. The trial also raises questions about the crypto industry's approach to recordkeeping and what modes of communication are appropriate and whether this should be maintained, said Enzer. Prosecutors argued that Bankman-Fried's use of the automatic deletion policy was evidence of his fraudulent and criminal intent.#Crypto2024 #cryptonews #FTX #news

Bankman-Fried completed her testimony during her criminal trial.Pressed by prosecutors on Tuesday, Bankman-Fried acknowledged that she had better knowledge of Alameda Research's problems than she previously claimed.
Sam Bankman-Fried, the former CEO of bankrupt crypto exchange FTX, wrapped up his testimony at his criminal trial on Tuesday, as both sides prepared for closing arguments scheduled to begin tomorrow.
During cross-examination of the former billionaire, prosecutors have been able to poke holes in Bankman-Fried's line of defense that he didn't understand how bad things were at FTX and its sister trading company Alameda Research until the very end.

Gemini has been battling Genesis and its parent company Digital Currency Group for months over agreements the companies have as part of the Gemini Revenue Program.
Gemini Trust Co crypto exchange filed a complaint against now-bankrupt crypto lender Genesis Global Holdco LLC over which company should own nearly $1.6 billion worth of Grayscale Bitcoin Trust shares.
Gemini's lawyers asked a New York bankruptcy court on Friday to rule that they should have access to more than 62 million GBTC shares. Gemini told the court that Genesis promised to hand over the shares to secure loans made by Gemini users as part of the Gemini Income Program.