ALBAWABA - This week in Crypto News Recap, Miss Universe contestant that represents El Salvador with a Bitcoin-inspired costume, speaking of first country to adopt btc, El Salvador paves the way for bitcoin bonds and 'Bitcoin City' construction, SBF denies mishandling users money, and SEC accuses Genesis and Gemini of offering unregistered securities through crypto earn program. Without any further ado, let’s start our quick round of crypto news.
SBF denies stealing FTX assets
FTX CEO Sam Bankman-Fried has denied allegations of improper use of customer funds stored with the crypto exchange. He attributes the company's bankruptcy to the market crash of 2022 and a PR campaign led by Binance CEO Changpeng Zhao. Bankman-Fried believes that a run on the bank led to liquidity issues which ultimately resulted in insolvency. A group of US senators has called for an independent examiner to be appointed by the US Bankruptcy Court for the District of Delaware to investigate the company's activities. Additionally, FTX's attorney has stated that the company has recovered $5 billion in cash and liquid cryptocurrencies.
SEC vs Genesis and Gemini: Unregistered Securities Allegations
The U.S. Securities and Exchange Commission (SEC) has charged crypto firms Genesis Global Capital and Gemini with offering unregistered securities through the Gemini's Earn program. The program, which was launched in 2020 in partnership between the two firms, allowed customers to loan crypto with the promise of later repayment with interest. The SEC believes that this program constitutes an offer and sale of securities and should have been registered with the commission. Tyler Winklevoss, co-founder of Gemini, has stated that the SEC's action is "totally counterproductive" and that the company had been in discussions with the regulator about the Earn program for over a year.
Miss El Salvador wears btc themed outfit and her country release a Digital Asset Law: A Step towards Bitcoin-Backed Bonds and 'Bitcoin City'
On Jan. 11, El Salvador passed a law called the Digital Assets Issuance law which establishes the legal framework for issuing Bitcoin-backed bonds to pay down sovereign debt and fund the construction of a special economic zone called "Bitcoin City." The bonds are anticipated to raise $1 billion for the country, with half of the funds being used for the construction of the special economic zone. Additionally, the law creates a regulatory body and sets a legal framework for all digital assets in the country.
Alejandra Guajardo, an actress and model, represented El Salvador in the Miss Universe 2022 preliminary competition by walking across the stage in an outfit that featured Bitcoin. Guajardo posted a photo of herself on her Instagram account on Jan. 12 with a big colón, one of the country's acknowledged currencies until 2001, strapped to her back and decorated with cocoa beans. She tagged Salvadoran President Nayib Bukele in the photo. The beauty pageant participant is holding a staff with a substantial actual Bitcoin on top in her right hand.
