Gary Wang, a former FTX executive, has avoided prison after cooperating extensively with prosecutors in the case against cryptocurrency exchange founder Sam Bankman-Fried. Judge Lewis Kaplan acknowledged Wang’s lesser role in the $8 billion fraud and commended his efforts to accept responsibility. Wang had pleaded guilty to fraud and conspiracy charges but argued he was initially unaware of the scale of the misconduct.
Wang, a former chief technology officer at FTX, admitted to altering the platform’s software under Bankman-Fried’s direction, granting Alameda Research special access to customer funds. Despite realising the fraud later, Wang continued maintaining the system but expressed regret in court, vowing to dedicate his life to making amends. Prosecutors highlighted his assistance in uncovering the fraud and his current work on tools to combat market manipulation.
The two met during a summer math camp in their youth and later studied at MIT before founding FTX. Wang was part of the close-knit group living with Bankman-Fried in a luxury Bahamian penthouse before the exchange’s collapse in 2022. The company’s failure exposed the misappropriation of customer funds, leading to Bankman-Fried’s 25-year prison sentence, which he is currently appealing.
Wang’s sentencing marks the conclusion of legal actions against Bankman-Fried’s inner circle. Others implicated included Nishad Singh, who also avoided jail, and Caroline Ellison, sentenced to two years. Prosecutors emphasised Wang’s unique skill set and role in aiding investigations, describing his cooperation as pivotal in holding the former FTX leadership accountable.
South Korean authorities have officially confirmed that North Korean hacker groups Lazarus and Andariel orchestrated the infamous $50 million cryptocurrency heist from the Upbit exchange in 2019. The stolen 342,000 Ether (ETH), worth around $147 per coin at the time, has soared in value and is now estimated to be worth over $1 billion due to recent market surges.
The investigation, conducted by South Korea’s National Office of Investigation, tracked crypto flows, IP addresses, and linguistic patterns, with support from the US Federal Bureau of Investigation, to pinpoint North Korea’s involvement. It is the first time South Korea has directly tied a cryptocurrency attack to the reclusive nation, a significant breakthrough in cybercrime investigations.
Meanwhile, the probe into Upbit continues after allegations of weak Know Your Customer measures. Regulators flagged over 600,000 potential violations, including acceptance of unclear identification documents, which could lead to hefty fines and regulatory challenges for the exchange.
South Korea’s Democratic Party (KDP) is moving forward with plans to implement a tax on cryptocurrency gains starting in 2025, despite opposition from the ruling People’s Power Party (PPP), which proposed a delay until 2028. The KDP, however, is offering a compromise by raising the threshold for taxable gains from 2.5 million won ($1,800) to 50 million won ($36,000). This move would ensure that only larger investors—those making substantial profits from crypto—are affected by the tax, leaving smaller players with little to no impact.
The original crypto tax proposal, which was met with backlash from stakeholders and investors, aimed to impose a 20% annual tax on gains over 2.5 million won. The KDP’s revised plan aligns more closely with the country’s stock tax policies, where the threshold for taxable capital gains is similarly set at 50 million won. The party argues that this approach would make the tax more palatable by only targeting “big players” in the market.
This tax has been delayed multiple times, initially scheduled for implementation in 2021 but pushed back to 2023 due to opposition. Now, with a new proposal in the works, South Korea’s government aims to enact the crypto tax on 1 January 2025, unless further political manoeuvres alter the timeline.
Goldman Sachs is considering spinning out its technology platform within its digital assets business, signalling a potential shift in its blockchain and cryptocurrency strategy. The platform, which has played a significant role in advancing blockchain technology and crypto-linked products, is expected to become an independent entity within 12 to 18 months, according to Mathew McDermott, Goldman’s global head of digital assets.
The bank’s plans come as the cryptocurrency market experiences a resurgence, with Bitcoin more than doubling its value in 2024 following the approval of spot Bitcoin exchange-traded funds by the United States Securities and Exchange Commission earlier this year. The proposed spin-out would likely provide greater operational focus for the platform while aligning with market trends.
Although the project is in its early stages, Goldman Sachs‘ move highlights its commitment to adapting its digital asset strategies amid evolving regulatory and market conditions.
Russia has introduced a winter ban on cryptocurrency mining in three Siberian regions to prevent electricity shortages during the colder months. These areas, located near Lake Baikal, have become popular for mining due to their low-cost hydropower but face heightened demand for energy during harsh winters.
In territories of Ukraine that Russia claims to have annexed, crypto-mining is also restricted due to extensive damage to energy infrastructure since 2022, causing power shortages.
As a major global crypto-mining player, Russia recently introduced regulations and taxes on the industry, expecting annual revenues of $2 billion.
Italian lawmakers are challenging proposed tax hikes on cryptocurrency capital gains and an expansion of the country’s digital tax. The government’s plans, part of Prime Minister Giorgia Meloni’s 2024 budget, include raising cryptocurrency taxes from 26% to 42% and applying digital levies to smaller firms. However, coalition members are advocating for less drastic measures, calling for a reduced crypto tax of 28% and preserving revenue thresholds for the digital tax.
Italian Economy Minister Giancarlo Giorgetti has signaled openness to revising the cryptocurrency tax proposal, emphasising the need for a balanced approach. Meanwhile, Forza Italia, a co-ruling party, is pushing to keep Italy’s web tax focused on large tech companies like Meta, Google, and Amazon, arguing that expanding it to smaller businesses could harm local enterprises.
Italy introduced a 3% digital tax on major tech firms in 2019, but new proposals to eliminate revenue thresholds have sparked concerns of unfair burdens on small and medium-sized businesses. The debate reflects broader tensions over balancing revenue generation with economic fairness and international relations, particularly with the US, which has criticised the digital tax’s impact on American firms.
Paxos, a prominent blockchain infrastructure firm, has announced plans to acquire Finnish stablecoin issuer Membrane Finance, pending regulatory approval. The acquisition will grant Paxos a sought-after Finnish Electronic Money Institution licence, allowing the company to operate across 30 European countries under EU regulations.
Membrane Finance, known for its EUROe and eUSD stablecoins, launched its euro-pegged stablecoin in February 2023 but saw modest initial demand. Paxos, which already issues dollar-backed tokens like the Pax Dollar (USDP) and gold-backed cryptocurrency PAXG, had not yet ventured into the euro stablecoin market. This deal marks Paxos’ first step into offering euro-pegged digital assets.
The acquisition comes as the European stablecoin market faces tighter oversight under the Markets in Crypto-Assets (MiCA) Regulation, which took effect in July. Paxos sees this move as an opportunity to expand its reach and cater to growing stablecoin demand in Europe, further solidifying its global presence in the digital currency space.
Michael Saylor, the executive chairman of MicroStrategy, is set to deliver a compelling three-minute presentation to Microsoft’s board of directors advocating for a Bitcoin investment. This announcement followed his participation in VanEck’s X Spaces on 19 November, where he shared insights into the proposal. Saylor plans to encourage the board to allocate a portion of their substantial $78 billion cash reserves into Bitcoin.
Microsoft, one of the largest tech firms globally, has no current exposure to Bitcoin or other cryptocurrencies, despite its significant investments in companies like OpenAI. Saylor highlighted that only 1.5% of Microsoft’s stock value is linked to intangible assets, with most of it focused on quarterly earnings. The December’s voting items may include a decision influenced by Saylor’s presentation, potentially paving the way for a revolutionary shift in the company’s financial strategy.
The potential impact of Microsoft embracing Bitcoin could be monumental. Saylor noted the remarkable rise of MicroStrategy’s shares since adopting Bitcoin, with a 2,735% increase over five years. Institutional and corporate adoption of Bitcoin is accelerating, and Saylor believes Microsoft could set a transformative example by joining the trend.
Bitcoin has surged 5.8% in the past 24 hours, reaching a new all-time high (ATH) of $97,750. Its market cap now stands at $1.93 trillion, holding a dominant 57.9% share of the crypto market. Trading volume has also exceeded $85 billion, reflecting the strong bullish momentum.
A poll on Polymarket suggests Bitcoin has an 83% chance of hitting $100,000 before December, further fuelling optimism. This price surge has contributed to the global crypto market reaching an ATH of $3.33 trillion. Additionally, pro-crypto figures in the US government raise expectations of crypto-friendly regulations under a potential second term for Donald Trump.
CryptoQuant CEO Ki Young Ju likened this year’s momentum to the 2020 bull run, citing strong whale accumulation and significant over-the-counter deals as major factors. He also pointed to the Bitcoin halving in April, which reduced miner rewards and pushed prices higher to ensure miner profitability.
The recent launch of spot Bitcoin exchange-traded fund (ETF) options in the US has further boosted Bitcoin’s price, with BlackRock’s iShares Bitcoin Trust receiving approval from the SEC. The introduction of these ETFs is expected to increase demand, allowing investors to better manage risk while participating in the Bitcoin market.
PayPal has partnered with Xoom to enhance access to its stablecoin, PayPal USD (PYUSD), in Asia and Africa. Announced on 19 November, the collaboration aims to facilitate cross-border transactions even outside traditional banking hours. Xoom has teamed up with Cebuana Lhuillier and Yellow Card to manage PYUSD disbursements in these regions.
Launched in 2023, PYUSD is an Ethereum-compatible stablecoin backed 1:1 by US dollars and issued by Paxos Trust Company. It competes with other regulated stablecoins like USDC and is the only stablecoin integrated into PayPal’s payment system. PayPal has positioned PYUSD as a versatile digital currency for developers, wallets, and Web3 applications.
PayPal has been actively expanding PYUSD’s reach, including a recent launch on the Solana blockchain and partnerships with firms like MoonPay and Anchorage Digital. However, despite these efforts, PYUSD remains a smaller player in the market, lagging behind giants like USDT and USDC, which dominate the stablecoin sector with significantly larger market capitalisations.
