Next week, former FTX CEO Sam Bankman-Fried is expected to tell a court in the Bahamas that he will no longer appeal extradition to the United States. Gemini struggles to deal with the fallout from Genesis. Binance, on the other hand, tries to ignore the increase in withdrawals. In addition to these, some data will come next week that is likely to affect Bitcoin and altcoins.
Will the US get Sam Bankman-Fried?
Those still standing in the crypto market are dealing with liquidity issues, bankruptcy, failing crypto businesses and various other problems. And these events continue to be the biggest stories of the week ahead. The week will be significant for the leaders and former leaders of three crypto exchanges: FTX, Binance and Gemini.
cryptocoin.comAs you follow, former FTX CEO Sam Bankman-Fried was arrested in the Bahamas last week. He was then sent to Fox Hill prison, where he was denied bail. Bankman-Fried will say on Monday that he will no longer appeal extradition to the United States in a court in the Bahamas, Reuters reported, citing an unidentified source. Thus, he will face fraud charges in the USA. The former CEO is likely to face up to 115 years in prison if convicted of all charges.
Will Binance avoid a bank run?
Binance CEO Changpeng Zhao says Binance’s financial position is strong. He also notes that the exchange has $56 billion in cryptocurrencies under its control. However, the stock market is still experiencing high withdrawals from the platform. According to the Financial Times, Binance saw $6 billion in withdrawals in the first half of last week.
So far, this pressure on withdrawals has caused some logistical problems for the exchange. Initially, it had problems supporting stablecoin withdrawals as it got stuck waiting in the legacy banking system. Beyond that, the exchange seems to be processing withdrawals as normal for now.
At the same time, audit firm Mazars eliminated Binance and all other crypto companies. This was because of the way their reports were perceived. He probably had an image of showing more control than he actually did. In fact, a source at the company told the FT that the auditor ‘doesn’t look too hard’ at the financials of these exchanges. The thing to watch is whether Binance customers show faith in the exchange and its reserves. So it will be important whether withdrawals continue to increase.
Need to watch Genesis for Bitcoin
Another big story to watch will be how Genesis handles liquidity issues. Crypto exchange Gemini, which has funds stuck in Genesis as part of the Gemini Earn program, has set up a committee of creditors. Houlihan Lokey, who has been appointed as the committee’s financial advisor, has started to defend his plan to fix problems at Genesis, according to his latest post.
Meanwhile, there is still a lot of speculation about the health of Genesis and its parent company, Digital Currency Group (DCG). Many DCG-related tokens took a particularly hard hit last week. This, in turn, has sparked widespread concern among crypto traders. At the same time, another DCG company, Grayscale Bitcoin Trust (GBTC), became 48% discounted. This causes more headaches for the parent company, which buys GBTC tranches using its own balance sheet.
Data and event agenda for bitcoin and altcoins
- Monday: It will be on the agenda for the Central Bank of Russia and the Ministry of Finance to make a statement on the reconciliation of cryptocurrency regulation.
- Tuesday: November housing starts data will come from the USA.
- Thursday: The Central Bank of the Republic of Turkey (CBRT) will announce its interest rate decision at 14:00. US Unemployment Claims data will arrive at 16:30 CEST. The US third quarter GDP figures will come at 16:30 CEST.
- Friday: November personal Consumption Spending Price Index (PCE) data will come in the US.
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