DeFi DeBrief #18: Arrested at last 💀
|Welcome to issue #18 of the DeFi DeBrief, your weekly digest of the biggest news in DeFi.
Judgement day for Sam Bankman-Fried 👿
Much to the frustration of the crypto community, Sam Bankman-Fried (SBF) has spent the last few weeks pleading ignorance in various media interviews and Twitter spaces. Then on the eve of his testimony in front of Congress, he was arrested.
The U.S. Attorney General has filed a list of criminal charges against SBF in what some have dubbed one of the biggest frauds in history. However, it was the Royal Bahamas Police Force that finally put him in handcuffs.
The courts have denied him bail, citing a flight risk. You can expect an extradition order from the United States in the near future.
Which Bahamas says it will process as soon as it arrives.
Why should you care?
The FTX implosion has cost a lot of people a lot of money. For a time, there were worries no one would be brought to justice, despite new FTX CEO John Ray III citing the absolute lack of corporate governance across the firm.
But those fears can now subside as Bankman-Fried faces charges including wire fraud, securities fraud, money laundering, and conspiracy (with the U.S. SEC planning to bring additional separate charges).
The Bahamas will also pursue a separate investigation into FTX, and then, hopefully, we can put this chapter behind us.
|IN THE HEADLINES
Better than expected inflation data in the U.S. 👏
The Consumer Price Index figures came out yesterday, and it was better than expected news from the United States. Inflation eased in November to its lowest level in almost a year, an unexpectedly positive shift.
The rate of increase in the CPI fell to 7.1%, lower than the forecast 7.3%. And while the Fed will still raise interest rates, hopes abound for a slower tempo, likely just 0.5% (instead of 0.75% as we’ve seen throughout much of this year).
U.S. stocks soared on the news, with investors betting on less drastic action to bring inflation back under control. But the gains ebbed later in the day, with the S&P 500 closing up 0.8%.
IN THE HEADLINES
Goldman Sachs primed for crypto shopping spree 🛒
As the adage goes, ‘the best time to buy is when there’s blood in the streets.’ And it seems Goldman Sachs smells an opportunity. The investment bank has said it plans to spend ‘tens of millions’ on discounted crypto investments.
Goldman sees a “bigger need for trustworthy and established players,” seeking to capitalise on the demise of FTX. As its head of digital assets said, “We do see some really interesting opportunities, priced much more sensibly.”
Five short reads catching our eye this week:
TEMPERATURE CHECK 🔥
*Data last updated at 08:00 on 14th December.
TWEET CHECK 🐦
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