The US Supreme Court will review a high-stakes securities fraud case involving Nvidia, the chipmaker widely known for its AI hardware. Nvidia faces accusations from shareholders who claim the company misled investors about its exposure to the cryptocurrency market. The case, originating from a 2018 class-action lawsuit led by Swedish investment firm E. Ohman J:or Fonder AB, alleges Nvidia downplayed the extent to which its revenue was driven by crypto mining—a volatile business tied to fluctuating cryptocurrency values. The lawsuit contends that Nvidia’s failure to fully disclose this dependency led to an inflated stock price that plummeted when the crypto market softened in late 2018.
Nvidia’s legal defence argues that the plaintiffs did not meet the rigorous legal standards set by the 1995 Private Securities Litigation Reform Act, which requires concrete evidence of intentional or reckless deception to pursue securities fraud claims. The Ninth Circuit Court of Appeals revived the lawsuit after a federal judge initially dismissed it, ruling that the plaintiffs presented sufficient claims that Nvidia’s CEO, Jensen Huang, knowingly or recklessly misrepresented the company’s crypto-related revenues.
The case is one of two before the Supreme Court this month that could alter the legal landscape for securities fraud litigation. The other case, brought against Meta Platforms’ Facebook, also examines the threshold for holding corporations accountable for alleged deception. With President Biden’s administration backing the shareholders in the Nvidia case, the rulings, expected by mid-2024, could make it significantly harder for private parties to sue companies for alleged fraud, depending on the Court’s decision.
Collapsed cryptocurrency company FTX has filed a lawsuit against Binance and its former CEO Changpeng Zhao, alleging that $1.8 billion was fraudulently transferred to Binance and its executives. The case centres on a 2021 transaction in which Binance sold its stake in FTX, which it initially acquired in 2019, back to FTX for $1.76 billion. The funds for the buyout reportedly came from FTX’s Alameda Research division, which was insolvent at the time, according to the lawsuit.
FTX’s administrators claim that Alameda’s use of tokens to finance the share repurchase was improper, as the division did not have the resources to cover the transaction. The lawsuit, filed in Delaware, seeks to recover the $1.76 billion for FTX‘s creditors and demands compensatory and punitive damages. Binance has dismissed the lawsuit as ‘meritless’, pledging to defend itself vigorously. Changpeng Zhao, also known as ‘CZ’, has not yet commented.
The legal battle adds to ongoing tensions between the two former crypto giants. FTX, once a dominant player in the cryptocurrency industry, collapsed in late 2022 after Binance withdrew a rescue offer. FTX’s founder, Sam Bankman-Fried, was sentenced to 25 years in prison earlier this year for embezzling $8 billion. Meanwhile, Zhao was given a four-month sentence for breaching US anti-money laundering laws.
Bitcoin has overtaken silver in market capitalisation, reaching $1.75 trillion after briefly crossing $89,000 before retracing slightly. The achievement positions Bitcoin as the eighth-largest global asset, surpassing silver, which fell to $1.732 trillion. The cryptocurrency has risen by 30% over the past week, while silver declined by over 6%.
This marks the second time Bitcoin has flipped silver in 2023, signalling a growing shift in perception among traditional investors. Increasing institutional demand and enthusiasm for spot Bitcoin ETFs have driven its rise, while silver, often viewed as a stable store of value, has struggled.
Broader market optimism, spurred by recent political shifts in the US elections, has played a role in Bitcoin’s surge. Pro-crypto lawmakers gaining power have boosted investor sentiment, with the “Bitcoin Industrial Complex” index seeing record trading volumes. Stocks like Coinbase and MicroStrategy hit multi-year highs, reflecting the growing adoption of Bitcoin as a hedge against market uncertainties.
German telecom leader Deutsche Telekom has entered the blockchain space as the first telecommunications company to operate a validator on the NEAR Protocol. The move marks its participation in NEAR’s Enterprise Node Operators programme, aimed at enhancing network decentralisation and security.
Deutsche Telekom sees this partnership as part of its commitment to greater data sovereignty and user control. Oliver Nyderle, head of digital trust and web3 infrastructure, described the collaboration as “promising and innovative,” highlighting its alignment with the company’s values. The initiative also broadens the firm’s staking portfolio, including networks focused on decentralised AI and scalability.
Following the announcement, NEAR Protocol’s price climbed 9.5% to $5.6, reflecting market optimism. This development comes on the heels of a Deutsche Telekom subsidiary launching a project to study Bitcoin mining using surplus renewable energy, showcasing its broader interest in blockchain applications.
A prominent Gigachad (GIGA) investor lost $6.09 million in a sophisticated phishing attack after clicking on a fake Zoom meeting link. The link redirected them to a malicious website that installed malware, enabling the hacker to drain three crypto wallets and steal 95.3 million GIGA tokens.
The hacker swiftly exchanged the stolen tokens for Solana and stablecoins like Tether and USD Coin, later transferring some funds to the KuCoin exchange. Crypto investigation firm Scam Sniffer revealed the method, and law enforcement, including the FBI, has been involved in the case.
Despite the significant loss, the investor remains optimistic, declaring confidence in recouping their funds during the ongoing crypto bull market. “I’m going to make it all back and more. Just watch me,” they said.
Bitcoin reached a new all-time high of $89,604 on Tuesday, pushing its market value to $1.77 trillion before experiencing a slight dip as long-term holders began to move their assets. At the time of writing, Bitcoin is trading at $88,400, with daily trading volume hitting $133 billion. The surge in price has prompted a notable increase in the circulation of dormant Bitcoin, with two-year and three-year-old coins seeing significant movements, signalling that long-term holders are taking profits.
The rally has also positively impacted the broader crypto market, which saw the total market cap climb to an all-time high of $3.11 trillion, marking a 4.7% increase over the past 24 hours. In addition, the market saw a $765 billion surge over the past week, with institutional investors contributing to the increased momentum. Bitcoin’s Market Value to Realized Value (MVRV) ratio is now at 178%, indicating that the average Bitcoin holder is currently experiencing a 178% profit.
The surge in Bitcoin’s price and overall market activity has sparked renewed interest in the sector. Crypto-related investment products have seen their highest inflows of the year, with $31.3 billion invested, bringing the total assets under management to $116 billion. The post-election market optimism, especially following Donald Trump‘s win, has led to a green market and increased institutional involvement in the crypto space.
The cryptocurrency market has surged to a record-breaking $3.12 trillion, bringing it close to surpassing France’s GDP. According to the International Monetary Fund, Bitcoin’s impressive rally to $89,500 played a major role in this milestone, pushing its market capitalisation to $1.77 trillion—overtaking Spain’s economy.
The crypto market is now more valuable than Microsoft and rapidly approaching the market caps of Nvidia and Apple. Analysts are divided on what lies ahead. While some, like Markus Thielen from 10x Research, believe Bitcoin will dominate and potentially hit $100,000 by the end of the year, others, including Rachael Lucas from BTC Markets, expect altcoins to take the lead in driving the market toward $4 trillion.
Bitcoin remains the focus, gaining 11% in 24 hours to $89,478. With prices nearing $90,000, the next few weeks could determine whether Bitcoin cements its dominance or altcoins take the spotlight.
Detroit residents will soon be able to pay city fees and taxes using cryptocurrency, making it the largest city in the US to adopt digital payments. In collaboration with PayPal, City officials aim to make these transactions secure and accessible, setting mid-2025 as the launch date. Mayor Mike Duggan highlights this as part of a wider initiative to attract tech entrepreneurs and promote blockchain’s potential in Detroit, hoping to foster economic growth and improve civic engagement.
The move also allows blockchain innovators to present projects that could enhance Detroit’s public services. Justin Onwenu, Detroit’s Director of Entrepreneurship and Economic Opportunity, encourages entrepreneurs to submit proposals by 15 December 2024, focusing on blockchain’s potential to improve data security, transparency, and service efficiency. Detroit’s open invitation underscores its ambition to position itself as a progressive hub for technological advancement.
Detroit officials also aim to modernise payment processes city-wide, improving accessibility and efficiency. The Treasurer’s Office envisions the new system as a bridge for Detroiters, including unbanked residents, to benefit from smoother electronic payment channels, reinforcing Detroit’s reputation as a forward-thinking, tech-friendly city.
The US Securities and Exchange Commission (SEC) has requested a federal court to dismiss three key defences presented by cryptocurrency exchange Kraken in a lawsuit accusing the platform of securities violations. The SEC’s motion, filed on 5 November, seeks to invalidate Kraken’s argument that it lacks clear legal guidance on which digital assets qualify as securities. The SEC contends that existing securities laws are clear enough and that Kraken was fully aware of potential breaches.
Kraken’s defences include invoking the “major questions doctrine,” which argues the SEC needs explicit Parliamentary approval to regulate digital assets as securities. Kraken also claims that it did not receive adequate notice of which aspects of its operations may violate securities laws. The SEC rejected these claims, labelling the defences as attempts to delay proceedings by complicating the evidence process.
According to the SEC, dismissing Kraken’s defences would simplify the case, reducing unnecessary document requests and preventing delays in reaching a verdict. Kraken initially attempted to dismiss the case in August, but the court ruled in the SEC’s favour, allowing the lawsuit to proceed. The outcome could have significant implications for the SEC’s regulatory authority over digital assets in the cryptocurrency industry.
The UK’s Financial Conduct Authority (FCA) has successfully prosecuted two men, Raymondip Bedi and Patrick Mavanga, for running a £1.5 million cryptocurrency investment fraud that misled 65 investors. Between 2017 and 2019, Bedi and Mavanga lured investors through cold calls and fraudulent, professional-looking websites, offering high returns on fake crypto platforms. The tactic resulted in substantial losses for their victims, totalling over £1.5 million.
The FCA charged both men with conspiracy to defraud, operating without FCA authorisation, and money laundering. Mavanga also faced additional charges for perverting the course of justice by deleting phone records linked to the scheme. The prosecution underscores the FCA’s mandate to uphold financial service standards and highlights the importance of being wary of unsolicited calls and online investment offers.
Two other suspects were involved: Rowena Bedi was acquitted, while a third defendant awaits a retrial in 2025. Another individual, Minas Filippidis, remains at large. The FCA advises consumers to stay vigilant against scams and only trust financial services authorised by the agency.
